Federal Funding Cuts Leave Farmers Redesigning Their Operations

TURRELL, Ark. (KAIT) — Cuts in federal funding are impacting the earnings of Arkansas farmers and decreasing their profits.

In early March, The U.S. Department of Agriculture (USDA) terminated a initiative that fostered a monetary collaboration between food banks and nearby agricultural producers. More than a billion dollars flowed into the Local Food Purchase Assistance (LFPA) program. These funds created a bridge between farmers and individuals who needed access to fresh produce.

A minimum of 40 participating farms were located in Arkansas, with Mator Farms LLC in Turrell being one of them.

Chloe and Ollie Cox III initiated their modest farm enterprise back in 2012. The couple cultivates an assortment of crops including kale, okra, purple-hull peas, as well as mustard, collard, and turnip greens.

Prior to the budget reductions, the Cox family took part in the LFPA program, which allocated $200,000 just for the previous year. They utilized all of this funds entirely for their operations.

The funds from the program enabled the Coxes to create a cash flow for investing in their farm, which included employing additional staff members for quality assurance and aiding with harvesting. Due to the withdrawal of financial support, they have been forced to terminate these employees.

The Cox family is frustrated with the investments that cannot be realized.

People put their faith in us due to assurances from the government about providing loans, but then they withdrew support," Ollie explained. "As a result, we're now burdened with significant debts and have spent hundreds of thousands of dollars on various pieces of equipment, yet we’re unsure how to proceed.

The Cox family is struggling with how to proceed with their farm, and they hope the government will invest additional funds into supporting the agricultural sector.

Chloe mentioned that food is one of the fundamental requirements for everyone.

Our meals don’t originate at the supermarket," Chloe stated, "they come directly from our local farmers.

The Coxes are currently contemplating whether to revert to their previous operational methods prior to receiving the LFPA funds or to shut down entirely.

The cut-off of funds also affected food banks.

Christie Jordan, CEO of the Food Bank of Northeast Arkansas, mentioned that this change will also require a shift for their organization.

She mentioned that the LFPA-supported food items were among the finest in terms of quality and nutrition that they provided.

The food bank will keep up with the need for food distribution, however, protein won't be handed out as part of the previous LFPA program.

Jordan and her group are seeking additional funding sources to compensate for what they've lost and possibly collaborate with farmers once more in the future.

The reduction in funding occurs as American households face challenges with food costs and accessibility.

An agricultural report released by the USDA last September revealed that 13.5% of American homes faced issues with food security. Arkansas had the highest rate of insecurity, nearing 19% of homes indicated they had low or very low food security. , which is below the national average.

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