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 Farm Bureau urges trade enforcement, biofuel growth, fair input pricing, and pro-farmer policy reforms to restore long-term certainty.
The first-ever “MICHELIN Guide to the American South” awards stars to top restaurants across Georgia, Louisiana, the Carolinas, and Tennessee, and pinpoints the region as a global food destination for the first time.
Livestock profits are propping up overall sentiment, but crop producers remain cautious amid tight margins and uncertain policy signals.
Farmers for Free Trade Executive Director Brian Kuehl shares more about the tour to gather farmers’ insights on the economic challenges they face in the ag economy.
RFD-TV’s farm legal expert, Roger McEowen, digs into the details of both the LRP and the LGM programs, two essential risk management tools for cattle producers.
USDA will meet part of November SNAP benefits under court direction, citing insufficient funds for full payments.
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:

USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
The request follows pressure from the American Sheep Industry Association (ASIA), which called for a formal investigation into whether lamb imports from Australia and New Zealand have cut into the U.S. market share.
The government reopens after 43 days. USDA resumes key reports, weighs farm aid, and watches China’s next move on U.S. soybean purchases.
Iowa Ag Secretary Naig recaps discussions surrounding a potential federal aid package for farmers and shares insights on producer sentiment in the Heartland.
FarmHER Katey Jo Evans of The Frozen Farmer joins us for a sneak peek of the latest episode of Dirt Diaries: The FarmHER + RanchHER Podcast.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
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!
Farm Traveler is for people who want to connect with their food and those who grow it. Thanks to direct-to-consumer businesses, agritourism, and social media, it’s now easier than ever to learn how our food is made and support local farmers. Here on the Farm Traveler, we want to connect you with businesses offering direct-to-consumer products you can try at home, agritourism sites you can visit with your family, and exciting new technologies that are changing how your food is being grown.