farmer picking cherry tomatoes
Wild Roots Farm in Troutdale, Oregon (Photo by USDA Oregon, NRCS)

Farm Policy | August 6, 2026

Change to Important Federal Rule Would Negatively Impact Farmers and Our Food System

Farm Aid and our partners are pushing back against a proposed rule that would affect more than $1 trillion in government spending and negatively impact family farmers and the organizations that support them.

What is the proposed rule?

In May, the Office of Management and Budget (OMB) issued a proposed rule that would significantly change how the federal government awards and manages federal grants, cooperative agreements and financial assistance across all federal agencies, including the United States Department of Agriculture (USDA). The proposed rule would impact everything from how the government funds scientific research to how grants to farmers are administered.

What is the Office of Management and Budget?

The OMB is the largest office of the executive branch and is responsible for implementing the president’s agenda through the administration of the federal budget. OMB oversees federal spending of government agencies, making it one of the most powerful institutions directly under the president’s control.

How would the rule impact farmers?

Farm Aid is most concerned that under the rule, important agricultural programs, including conservation and farm loan programs, could be suspended or canceled at any time at the whim of agency leadership. These are programs that farmers rely on to run their operations and make business plans – programs like the Conservation Reserve Program (CRP), Environmental Quality Incentives Program (EQIP), and Farm Operating Loans. The rule would allow for USDA to rescind funding for contracts, even if farmers have already made investments on a project, all according to vague and undefined terms.

How would it impact Farm Aid and other organizations?

Farm Aid relies on some federal funding to help operate our hotline, the country’s only national hotline and a crucial resource for farmers. Since the start of our federal award in 2021, we’ve assisted over 3,700 farmers who were either in crisis or seeking support, and helped over 6,000 more access resources through our online resource network.

Thousands of organizations like Farm Aid rely on USDA programs, services and resources to support family farmers and build a resilient and fair food and farming system. The proposed rule increases uncertainty for farmers and farm organizations and undermines the ability of USDA to fulfill its mission of supporting farmers. If implemented, the rule could negatively impact farming communities for generations.

What’s next?

The deadline for comments on the proposed rule was July 13; Farm Aid and nearly 500,000 other organizations and individuals across a wide range of sectors submitted comments about the rule, the vast majority of which expressed opposition. Legally, OMB must respond to comments before it implements the rule, meaning that the rule will have to incorporate public feedback, the planned October 1 start date could be pushed back, or the rule might face legal challenges.

Read Farm Aid’s comment:

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