Federal funding cuts hitting Illinois farmers, foodbanks

• The Local Food Purchase Assistance Program and the Resilient Food Systems Infrastructure Program, funded by the USDA, have been discontinued, leaving millions of dollars in outstanding reimbursements for Illinois.
• The cuts will significantly impact Illinois farmers, particularly those from historically underserved communities, and limit access to nutritious food for those in need.

The most recent round of cuts from the Trump Administration are hitting Illinois farmers and foodbanks.

The Illinois Department of Agriculture, or IDOA, announced on March 4 the end for two grant programs as part of the Trump Administration’s federal cuts.

The Local Food Purchase Assistance Program, or LFPA, and the Resilient Food Systems Infrastructure Program, RFSI, had funding cut without explanation by the United States Department of Agriculture. 

“This program requires Illinois farmers to invest in upfront input costs which is no longer possible given that the federal government has said they will no longer provide reimbursements,” said IDOA Director Jerry Costello II. “Without federal funding, the program that has helped to create local food systems in Illinois is unfortunately no longer able to operate.”

The USDA informed states it is ceasing reimbursements for any costs incurred after Jan. 19, 2025. 

States were notified by USDA that LFPA and RFSI invoices are being processed only for costs incurred on or prior to Jan. 19, 2025. Reimbursement claims submitted for costs incurred after that date are being returned with no explanation or timeline for reimbursements to resume. 

Capitol News Illinois reported the funds are part of the $2 billion the federal government is withholding from the state.

More: Nearly $2B has not been paid to Illinois by feds, Gov. Pritzker and others say

Local Food Purchase Assistance Program

The USDA established the LFPA program to strengthen statewide food systems, using federal funds to buy food from growers and producers at fair market value that is distributed to communities in need at no cost.

The Illinois-Eats program is funded by the LFPA with federal funds to buy produce from farmers at the fair market value before distributing to foodbanks in areas across Illinois needing the most.

In Illinois, 883 community sites have distributed food from 176 farmers, 58% of whom meet the USDA definition for new farmers.

Illinois was approved to distribute $43 million under the course of the multi-year LFPA agreement and $17.8 million remains outstanding from the federal government. Illinois is also the only state sourcing 100% of products from socially disadvantaged farmers.

Resilient Food Systems Infrastructure Program

The purpose of the RFSI program is to expand the middle of the food supply chain capacity for locally and regionally produced foods to offer better market opportunities and new streams of revenue to small and mid-sized agricultural producers. 

IDOA says it was in the process of selecting grantees for the RFSI program, which would have provided $6.4 million in grant funding to entities. 

Illinois agricultural impact

Illinois is the third largest exporter of agricultural commodities in the U.S. Total exports from Illinois in 2023 were estimated at $81 billion, of which $13.7 billion was attributed to agriculture.

More: Popular Springfield-area farmers market coming back this summer following closure

According to the USDA Global Agricultural Trade System in 2024, Illinois accounted for over $12.4 billion of agricultural product exports, including $3.6 billion worth of products to Mexico ($2.5 billion) and Canada ($2.1 billion). 

Similarly, according to the U.S. Department of Commerce, in 2024 Illinois accounted for over $784 million in agricultural product imports.

“This loss in support for our farmers, especially those from communities that have historically been disinvested in, is a loss for everyone in our state,” said IDHS Secretary Dulce M. Quintero. “Access to nutrition is a human right.”

Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. She can be reached at CLGrant@gannett.com; and on X (Formerly known as Twitter): @Claire_Granted