Apr 1, 2025

NCAE urges USDA to investigate undisbursed funds to farmers

The National Council of Agricultural Employers (NCAE) is pressing the U.S. Department of Agriculture (USDA) to release federal funds designated to aid farmers in critical labor shortages and reduce irregular migration.

In a letter to Secretary of Agriculture Secretary Brooke Rollins, NCAE urges Secretary Rollins to investigate an unexplained halt in disbursement of federal grant monies previously allocated and awarded to farmers involving immigration.

Last year, USDA’s Farm Labor Stabilization and Protection Pilot Grant Program (FLSP) awarded $50 million in federal grant funding to 141 awardees in 40 states and Puerto Rico, reaching 177 agricultural operations throughout the U.S., according to a news release.

In the letter, NCAE stated that FLSP participants report they stopped receiving reimbursements in January or failed to receive any reimbursement. NCAE explains that recipients report being “out-of-pocket for hundreds of thousands of dollars,” adding that some are reportedly borrowing money and are on the edge of bankruptcy.

NCAE also relayed that, despite repeated attempts, participants report they have not received clarity from USDA on the status of the FLSP funding and when or whether they will be reimbursed for incurred or future expenses, according to the release.

“America’s farmers and ranchers who engaged in the FLSP program did so in good faith and with the understanding that USDA would uphold their end of the commitment,” Michael Marsh, NCAE’s President and CEO, said in the release. “Particularly at a time when margins on America’s family farms and ranches are increasingly thin, we are deeply troubled by reports that farmers and ranchers have not received reimbursements for the significant costs incurred as part of their participation in USDA’s Program.”

USDA describes the FLSP as a way to help address labor shortages, mitigate costs associated with the H-2A temporary seasonal visa program, and reduce irregular migration from Northern Central American countries, according to a news release.

“While we know it is not USDA’s intent to further strain America’s agricultural community, which is already burdened by of several years of regulatory overreach, rising labor and input costs, and unfair foreign competition, USDA’s lack of communication about the status of the FLSP funds is doing just that,” Marsh said in the release.

NCAE hopes Secretary Rollins and her team will thoroughly investigate the issue and promptly communicate with recipients so they can return to doing the work they do best: growing food, fiber and fuel to feed, clothe and power the world, according to the release.