USDA Local Food Programs Ended: Impact on Farmers, Schools, and Food Banks
This is a summary of an article published by KCUR on April 14, 2025. Read the original article.
Program Termination Affects Local Food Systems
The U.S. Department of Agriculture recently ended two significant local food initiatives: the Local Food for Schools Cooperative Agreement Program and the Local Food Purchase Assistance Cooperative Agreement Program. These programs had been supporting thousands of schools, farmers, and food pantries across the Midwest and Great Plains.
The Local Food for Schools program had awarded $200 million to states and territories, while the Local Food Purchase Assistance program for food banks provided $900 million. In October 2024, the USDA had announced plans to extend both programs with a $1.2 billion investment over three years, but the new administration ended them in March 2025.
Impact on Happy Hollow Farm
Our own Liz Graznak, owner of Happy Hollow Farm, was among the many farmers affected by this decision. The USDA programs had helped Liz expand production over the past three years, enabling her to hire more staff and invest in equipment including a walk-in cooler and new harvesting tools.
"I was providing so much produce through these two programs that it was about a quarter of my annual sales," Liz shared with KCUR. "That's a huge loss."
In response to the funding cuts, Liz has had to adjust the farm's planting plan for the year. The most significant impact has been on employment—she's only able to hire five full-time employees instead of the planned nine.
Broader Regional Effects
The timing of the USDA's decision has disrupted momentum in creating more permanent, regional supply chains. The programs had connected over 8,000 producers across the country with 7,900 food banks, food pantries, and communities.
Meanwhile, food insecurity continues to rise across the region. Food Bank for the Heartland, which serves counties in Nebraska and western Iowa, reports higher numbers now than during the height of COVID, with 1.56 million individual visits over the year ending June 2024.
Looking Forward
Despite the challenges, farmers and food assistance organizations are adapting. Some schools are comparing prices to determine if they can continue buying from local producers, while food banks are developing scenarios based on how future funding streams might evolve.
Local food advocates remain hopeful that similar programs supporting regional food systems may be implemented in the future.
This summary was created for Happy Hollow Farm based on reporting by Harvest Public Media, a collaboration of public media newsrooms in the Midwest that reports on food systems, agriculture and rural issues.
Read the original article "USDA ended its local food programs. A look at how farmers, schools and food banks are coping" in its entirety on KCUR 89.3's website.