CHICAGO/WASHINGTON, D.C.: Farmers and food groups across the U.S. are laying off workers, stopping investments, and struggling to get funding due to a USDA freeze on many grants, according to farmers and agriculture organizations in seven states.

This comes as President Trump imposed new tariffs on goods from Canada, Mexico, and China, triggering trade disputes with major buyers of U.S. farm products.

On March 6, Trump announced that farm-related products like potash fertilizer would be exempt from the tariffs until April 2. However, if the tariffs take effect, they could hurt U.S. farm exports, increase costs for farmers already dealing with low crop prices, and raise grocery prices, farm groups warn.

Trump has strong support in farm states, but recent actions—such as freezing humanitarian aid and pausing federal funding—have disrupted agriculture markets, causing uncertainty. Some farmers have already had to halt production. Two farmers told Reuters they are close to bankruptcy because of the USDA freeze.

White House Deputy Press Secretary Anna Kelly said the government is making agencies more efficient to better serve farmers. A USDA spokesperson said the agency is reviewing the frozen programs.

While Trump's previous trade wars hurt American farm exports, many farmers remained loyal to him, believing he would help them recover financially. During his first term, the Trump administration provided about US$217 billion in farm aid, the highest amount since the 1930s, according to USDA data.

Agriculture Secretary Brooke Rollins has said the USDA may consider direct payments to farmers again if trade wars lead to significant losses. The USDA currently runs hundreds of programs that provide grants, loans, and subsidies to farmers. Between 2019 and 2023, farmers and ranchers received $161 billion in financial assistance from the USDA, according to a government report.

Trump also froze clean energy project funding under the Inflation Reduction Act (IRA) early in his presidency. On February 20, Rollins said the USDA had begun unfreezing some IRA funds for farmers, but it's unclear how much money will be released.

Other agencies, such as USAID, have also faced funding freezes that impact farmers. The Trump administration said it would release less than $100 million out of the $40 billion usually allocated for USAID programs.

On March 5, the Supreme Court ruled that the administration cannot withhold payments for aid work already completed. Meanwhile, two federal judges have blocked Trump from freezing federal spending on a large scale. The entire economic impact on farmers remains uncertain.