Iowa farmers could be impacted by a funding freeze with the United States Department of Agriculture. 

The USDA’s Environmental Quality Incentives Program and the Rural Energy for America Program funds have been frozen. 

According to the USDA’s website, farmers signed contracts with the USDA paid up front to build fencing, plant new crops, and install renewable energy systems with guarantees that the federal government would issue grants and loan guarantees to cover at least part of their costs. Those farmers are now looking at having to pay the full price. 

The current administration rescinded the pause after a federal judge temporarily halted its implementation. But farmers have reported that their funding has remained frozen. 

The Iowa Soybean Association explains in a statement that the USDA payments had been suspended for a five-year Midwest Climate Smart Commodity grant that the organization secured in 2022. The $95 million deal supports more than 1,000 farms in 12 Midwestern states. The grant program encourages conservation practices in producing corn, soybeans, wheat and sugar beets, with the greatest participation coming from Iowa.