Why Cuts to USAID Harm Rural Farmers in the South

The Trump administration’s cuts to the United States Agency for International Development (USAID) have raised significant concerns about their potential impact on rural farming communities across the southern United States. 

The Vital Link Between USAID and Southern Agriculture

While USAID is primarily known for its international development work, its domestic programs and partnerships have created valuable market opportunities and technical support for American farmers, particularly in the South. The agency's agricultural initiatives have fostered international trade relationships that benefit U.S. producers and have helped implement crucial farming innovations.

Export Markets Under Threat

Southern farmers, especially those growing cotton, rice, soybeans, and peanuts, depend heavily on export markets developed through USAID partnerships. The agency's work in establishing agricultural trade relationships with developing nations has opened doors for American agricultural products worldwide.

Georgia peanut farmer James Wilson explains: "USAID programs helped introduce American peanut varieties to markets in Africa and Asia. Those connections account for nearly 30% of my annual sales. If those programs disappear, so do those relationships."

The Economic Multiplier Effect

For every dollar invested in USAID agricultural programs, studies indicate a significant return to the American economy. This multiplier effect is particularly noticeable in southern states where agriculture remains a cornerstone industry.

Take, for example, Mississippi. USAID-supported initiatives for rice farmers have generated an estimated $4.50 in economic activity for every dollar invested, creating jobs in processing, transportation, and marketing sectors.

The Mississippi Rice Promotion Board has documented how USAID partnerships helped establish export relationships with countries in Central America and the Caribbean, increasing rice exports from the state by nearly 35% over the past decade. These export opportunities have enabled family farms like Delta Rice Partners, a cooperative of 24 small farms, to expand operations and hire additional workers.

Beyond direct farming jobs, the ripple effects extend to rice mills in counties like Bolivar and Sunflower, where processing facilities have added second shifts to handle increased production volumes. Transportation companies specializing in agricultural logistics have reported 15-20% growth in hiring to support these expanded export channels.

The economic benefits also extend to supporting industries like agricultural equipment dealers, seed suppliers, and financial services focused on agricultural lending. According to Mississippi State University's agricultural economics department, USAID-supported market development initiatives have helped maintain over 2,800 jobs throughout the rice value chain in the state.

What's at Stake?

The proposed budget cuts threaten to dismantle decades of progress in building sustainable agricultural systems. For southern farmers already operating on thin margins, the loss of market access and technical support could prove devastating.

Rural communities across Alabama, Mississippi, Georgia, Arkansas, Louisiana, and the Carolinas stand to lose vital economic development opportunities if these cuts proceed as planned.