USDA Cuts $300M Biden-Era Program for First-Time Farmers, Citing ‘Abuse of Federal Funds’

The Biden Administration launched the Increasing Land, Capital, and Market Access (ILCMA) program in 2023 to help underserved farmers facing barriers to land ownership.

usda building_Photo by Chad via Adobe Stock.jpg

Photo by Chad via Adobe Stock

Washington, D.C. (RFD News) — According to reports from Politico and Civil Eats, the U.S. Department of Agriculture (USDA) has canceled a $300 million program designed to help farmers purchase and retain land, a move that is drawing mixed reactions across the agricultural sector.

The program—known as the Increasing Land, Capital, and Market Access (ILCMA) initiative—was created under the Biden Administration’s American Rescue Plan and launched in 2023 to support beginning and underserved farmers facing barriers to land ownership.

According to multiple reports, the program had awarded funding to roughly 50 projects nationwide through nonprofits, tribal groups, and universities, with the goal of improving access to land, capital, and markets. However, the USDA has now terminated most of those contracts, effectively ending the initiative before it could be fully implemented.

The cancellation affects organizations that reportedly had already begun implementing projects to help farmers—particularly those historically underserved—gain access to land and financing. Many of those projects targeted barriers such as high land costs, lack of capital, and succession planning challenges.

Advocates say the loss of funding could have significant consequences, especially as farmland prices remain elevated and entry into agriculture becomes increasingly difficult for younger producers. Some groups report that farmers were already in the pipeline for assistance, including down payment support for land purchases, when the funding was cut.

Meanwhile, the decision is adding to ongoing conversations about land access, generational turnover in agriculture, and how best to support the next wave of American farmers.

USDA Defends Decision to Cut the Program

In termination letters, USDA officials said the program no longer aligns with agency priorities, citing concerns over diversity, equity, and inclusion (DEI) criteria and how funds were being used. According to reporting, officials described the initiative as involving “discriminatory preferences” and characterized some spending as wasteful.

The agency also cited examples of expenditures it deemed inappropriate, arguing that the program did not sufficiently focus on direct support for farmers.

Organizations impacted by the decision have been given the opportunity to appeal the cancellations, and some are considering legal action. The move is part of a broader review of USDA programs as the agency reassesses spending priorities and policies under the current administration.

RFD NEWS reached out to the USDA to confirm these reports, and a department spokesperson provided the following statement:

“Over the last year, USDA has worked to clean up the mess left for us by the last Administration. To no surprise, a peek behind the curtain of this Biden-era program revealed the egregious misuse of taxpayer dollars to the tune of nearly $300 million dollars.

Under the guise of increasing land access for producers, the ILA program included no minimum requirement for direct producer support.

Instead, the program permitted the abuse of federal funds, including expenditures on the purchasing of a barbecue smoker, construction of a gazebo, massages, and for one awardee, a $20,000 budget for ink pens alone.

Specific Examples of inappropriate spending under the ILA program include:
  • $20,000 for a barbecue smoker
  • $20,000 allocated for massages for farmers
  • $110,000 for a camper/RV
  • $27,000 for drones
  • $112,500 for refreshments
  • $130,355 for office supplies, including $20,000 for pens
  • $10,000 for a camera to livestream cooking videos
  • Funding for gazebo construction
  • Multi-million-dollar budgets with vague justifications such as “travel” and “supplies”

USDA remains committed to restoring fiscal discipline and ensuring that programs serve the farmers and ranchers we are mandated to support. Under this Administration, USDA programs will uphold market principles, engage in fiscal discipline, and provide adequate funding to the farmers it exists to support.
USDA Spokesperson

Related Stories
RealAg Radio host Shaun Haney discusses how AI integration in grocery retail could impact farmers and the broader food supply chain.
Livestock Conservancy Senior Program Manager Jeannette Beranger explains the upcoming poultry census and ongoing efforts to preserve rare and heritage poultry breeds raised across the U.S.
Alliant Chairman of Agriculture and former U.S. Ag Secretary Mike Johanns explains the R&D Tax Credit, the recent Tax Court ruling, and ways livestock producers and agribusinesses can qualify.
Texas Ag Commissioner Sid Miller joins us to discuss the cattle herd rebuild, trade concerns, and how ranchers would define “America First” policy priorities.
Stream all the action from livestock shows across Rural America with your annual subscription only on RFD+
Ag Committee Chairman Rep. Glenn “GT” Thompson has referred to the proposal as “Farm Bill 2.0.”
Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

UNL Extension’s Troy Walz discusses the Nebraska Ranch Practicum, where sessions are held, how producers can get involved, and what ranchers can gain from participating in the program.
The Ranger Road Fire in the Oklahoma Panhandle is now 65% contained after burning nearly 300,000 acres over the past week. Kevin Charleston of Specialty Risk Insurance Agency discusses wildfire recovery, livestock insurance considerations, and the importance of preparedness for producers across the Southern Plains.
Ag leaders say President Donald Trump’s State of the Union is unlikely to spark major agriculture headlines, but ongoing tariff uncertainty and trade policy remain key concerns, as does the debate around glyphosate and the status of the next Farm Bill.
Cotton jassid, a invasive pest, is raising concerns for Southeast cotton growers as experts work to understand its impact this season.
RFD Farm Legal & Tax expert Roger McEowen shares guidance on the 45Z Clean Fuel Production Credit, its impact on renewable energy and agriculture, and what producers should know moving forward.
Singer-songwriter and RanchHER Clare Dunn reflects on the importance of National FFA Week, her time in FFA, and her commitment to advocating for agriculture and rural issues.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.