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
The court’s decision to deny the defendant’s motion to exclude the expert’s testimony serves as a sharp reminder of the high burden required to exclude expert testimony, particularly in the agricultural context, where “experience” is often the currency of reliability.
The USDA’s annual report leaves dairy producers with a mixed picture. Output and herd size expanded, but weaker prices kept income from rising with production.
Total cash receipts from marketings of cattle, calves, hogs, and pigs climbed by 18% in 2025 to $165 billion.
Pseudorabies case confirmed in Iowa herd prompts heightened biosecurity measures as U.S. swine producers work to prevent spread and protect herd health.
The goal is to start conversations and connect farmers with help when they need it.
Members from across the state will gather for competitions, workshops and leadership opportunities.
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:

Just like cows, kids experience ups and downs—from small frustrations to unexpected moments—but there is still good in every day.
Dr. Jeffrey Gold joins us on Rural Health Matters to discuss rural mental health awareness, the importance of reducing stigma in agriculture, and resources available to farmers, ranchers, and rural families seeking support.
Utah Senator John Curtis joins us for “Champions of Rural America” to discuss new legislation to improve forest management and wildfire prevention and its broader implications for rural communities and infrastructure.
NRECA CEO Jim Matheson joins us to discuss rural electric co-ops’ push for expanded USDA loan programs, rising energy demand from data center expansion, wildfire mitigation and other policy priorities impacting rural power infrastructure.
StoneX’s Josh Linville discusses USDA’s efforts to boost domestic fertilizer production and his outlook on supply and prices.
With the Farm Bill now in the Senate’s hands, industry groups say the stakes are high—and timely action could be critical for producers navigating a difficult economic environment.