USDA Funding Freezes and Terminations. What do Farmers do?

By Samantha Hilborn-Naluai and Jason Rodriguez, NMAA Farmer and Rancher Coordinators with help from the NMAA team. 

Introduction

As part of the sudden and sweeping actions of the new Trump Administration, the United States Department of Agriculture (USDA) has frozen and terminated Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) contracts for farmers that were funded through the Inflation Reduction Act. One of the major NRCS programs that farmers rely on is the Environmental Quality Incentives Program or EQIP, that includes cost-share for high tunnels, irrigation infrastructure, fencing, brush removal and other conservation practices. Some of these funds have been frozen or terminated.

Almost 6,000 employees from USDA were fired or laid off in mid-February. While there was a mandate to rehire those employees for 45 days, their status as permanent employees is still undecided. New Mexico farmers and ranchers are affected both directly and indirectly from these actions. Additionally, we know that 35 employees were laid off within the New Mexico USDA offices. Some offices are gutted while some are operating on already limited staff. If you have been to an NRCS office, you know that employees needed those 35 extra hands to keep up with the demand from farmers and ranchers. On top of that, there is no centralized way that information is getting from the federal government to farmers and ranchers, and even technical assistance providers, which adds to the frustration and confusion for everyone involved. 

With all of this going on, farmers and ranchers may be asking themselves, ‘What do we do? Is there any way to reverse what is happening? Do I have any rights?’ We have compiled resources and a step-by-step guide to help you decide what to do. Most of the time, a farmer has a right to file an appeal to the USDA. This appeals process is through the National Appeals Division or NAD. 

 

Step-by-Step Guide for Farmers who have a signed FSA or NRCS contract

Step 1: Find out which of these scenarios applies to you. 

• If your contact has not been frozen or terminated, you can simply wait until you do get a written notice or ask your program manager about the status. Please continue following your contract, record your communications and submit reimbursements during this time. Stop here.
• If you have received a written communication that your contract has been frozen, paused, or terminated, you can submit a National Appeals Division (NAD) appeal. Move to Step 2 if you want to submit an NAD appeal.  

Step 2: 

• If you are interested in submitting an NAD appeal, you need to first confirm that it’s in your contract. Take out your FSA or NRCS contract and find the section for ‘Rights to Appeal’ or similar language. For example, an EQIP contract may say “The participant may appeal an adverse decision under this contract in accordance with the appeal procedure set forth at 7 CFR Part 11 National Appeals Division Subpart A, Part 614 NRCS Appeals procedure ”. If this or similar language is in your contract, you can file an NAD appeal. Move to Step 3. 

Step 3: 

• Submitting a NAD Appeal: Submitting an appeal is time sensitive and must be done within 30 days of your written notice. 

Gather supporting documents; this includes the USDA contract, any written notification you received for frozen or terminated contract, any other correspondence, receipts of work, or any other proof of harm that you’ve had from the freeze. Prepare a detailed letter of why you are submitting an appeal. This includes details of financial hardship or other harms you have or may experience from your frozen or terminated contract. Provide specific dollar amounts if you have them. Fill out a USDA NAP appeal request form. Sign your letter and request form. You can e-file/submit at NAD Appeals | Home or you can mail your letter and supporting documents to the address below. Lastly, prepare for a hearing or submit a follow up letter after 7 days if you have not gotten a response. 

If you’re a NM acequia farmer, your NAD appeal letter should be addressed and, if mailing, sent to:

National Appeals Division Western Regional Office (WRO) 

13922 Denver West Parkway Suite 100-NAD 

Lakewood, CO 80401-3102

More information on submitting an appeal can be found here: USDA Contract Freezes: Filing an NAD Appeal or Demand Letter – Farm Commons. This document has a sample letter for an NAD appeal (pgs. 10-11), sample inquiry letter (pgs. 14-15), and sample follow up appeal letter (pgs. 16-17). It also has information on steps after you submit an appeal and prepare for a hearing (pgs. 6-7). 

 

Conclusion

Filing an appeal is not a failsafe option; the USDA can still deny your appeal. However, it does preserve your right to file a legal claim. 

Lastly, keep a written record of everything you’re doing. And remember, you’re not alone in this. 

Reach out to Samantha (info below) if you would like to coordinate with NMAA and partners on other strategies to restore funding. 

 

Other Resources

1. The National Sustainable Agriculture Coalition (NSAC) has put together an action call for the general public. ‘Tell Your Reps to Unfreeze Funds Now’ Prewritten Email Response link is open and available for anyone who wants to take action. 
2. USDA Contract Freezes and Terminations: Legal Action Steps for Farmers with Signed EQIP and CSP Contracts – Farm Commons Document
3. Farm Commons put on a webinar “Terminated and Frozen USDA Funding: Filing an Appeal to Protect Your Rights” that goes over much of the appeals process and sample inquiry process. 
4. FLAG Farmers Legal Action Group, Website Link 
5. Cordatis Law Firm, Joshua Schnell, Webpage Link. Joshua is familiar with working with these types of cases and could provide specific legal counsel. 

 

Contact NMAA

Contact the NMAA team for more information at:

Samantha Hilborn-Naluai sam@lasacequias.org

Jason Rodriguez jason@lasacequias.org 

Give us a call at 505-995-9644

 

UPDATE:

As of April 15, 2025, Existing EQIP and CSP payments are currently being processed, with pauses being lifted and no terminations occurring. Please contact your NRCS or FSA office, or the neighboring field office if you are still unsure of the status of your contract or payment.