WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) this week joined Senator Cory Booker (D-N.J.) and 15 of his Democratic colleagues in introducing the Honor Farmer Contracts Act, legislation to release illegally withheld funding for all contracts and agreements previously entered into by the U.S. Department of Agriculture (USDA).  

President Trump’s USDA has refused to make reimbursement payments to fulfill signed contracts, without any indication of when or whether farmers will be paid the money they laid out and are owed. Farmers and the organizations that serve them operate on tight margins. This legislation would require the USDA to pay farmers all past due payments as quickly as possible to prevent them from having to shut down their operations.   

“Let’s get one thing straight: the Trump Administration is illegally stiffing our farmers, refusing to reimburse them for funding they’ve been promised. Trump pulled the rug right out from underneath farmers’ feet. Our farmers made these agreements in good faith, and Trump’s decision to go back on his word will hurt Vermont farmers and cause irreversible damage to local food programs across the country,” said Senator Welch. “Our farmers work hard, and they’re already working on the knife’s edge to keep their farm up and running. Our legislation ensures that the Trump Administration holds up its end of the bargain and supports our farmers.” 

“Farmers across the country have been in limbo ever since the USDA froze previously signed agreements and contracts, with many facing catastrophic consequences if these freezes continue,” said Senator Booker. “USDA’s refusal to pay what is owed to farmers and the organizations that support them is theft, plain and simple. It’s a critical time of year for farmers and ranchers. They should be doing what they love – feeding our communities, not worrying about unpaid contracts. This legislation will fix that by forcing USDA and the Trump Administration to hold up their end of the deal.” 

“Over the last two months, farmers, ranchers, and rural communities have been left in limbo – waiting for the USDA to honor its promises,” said Representative Vasquez. “The Honor Farmer Contracts Act is about restoring trust and keeping our word to the hardworking people who feed America. When farmers sign contracts, they expect the government to follow through. It’s that simple. This bill will immediately unfreeze critical funding, ensure farmers are paid for their work, and reopen essential USDA offices that were shuttered without notice. This legislation is standing up for rural America, protecting family farms, and strengthening our food system. Let’s do right by our farmers – because when they thrive, we all do.” 

When farmers successfully apply to USDA programs and then spend their own dollars in reliance upon signed contracts with the agency, they rightfully expect that they will receive reimbursement. Similarly, farmer-serving organizations—which farmers rely upon to connect to local markets and implement practices that make them more productive and less resource intensive—are facing imminent funding crises from not being reimbursed for completed or in-progress contracted work. If not quickly made whole, these organizations will be forced to make agonizing decisions to lay off staff and stop helping farmers, destroying years of progress in advancing local food systems.  

The Honor Farmer Contracts Act would: 

• Require USDA to unfreeze all signed agreements and contracts; 
• Require USDA to make all past due payments as quickly as possible; 
• Prohibit USDA from cancelling agreements or contracts with farmers or organizations providing assistance to farmers unless there has been a failure to comply with the terms and conditions of the agreement or contract. 
• Prohibit USDA from closing any Farm Service Agency county office, Natural Resources Conservation Service field office or Rural Development Service Center without providing 60 days prior notice and justification to Congress.  

Organizations endorsing the Honor Farmer Contracts Act include the Northeast Organic Farming Association of Vermont, Northeast Organic Dairy Producers Alliance, New England Farmers Union, American Agriculture Movement, American Grassfed Association, Farm Action Fund, Farm Aid, Farm and Ranch Freedom Alliance, National Young Farmers Coalition, Rural Coalition, and more. Read the full list of organizations endorsing the bill here.  

“On Farm Aid’s hotline, we’re hearing from farmers and farmer-serving organizations who have frozen and canceled federal funding, and we know these are only a few of the thousands from around the country,” said Hannah Tremblay, Farm Aid’s policy and advocacy manager. “USDA’s withholding of payments owed under signed, lawful contracts is causing turmoil across our food system–and it couldn’t come at a worse time. As farmers plan their growing season, uncertainty is among the most dangerous elements they have to grapple with. The effects of this funding freeze are likely to compound and severely impact all aspects of our food system – from seed and soil, to farmer and consumer. Farm Aid fully supports the Honor Farmer Contracts Act to end this unlawful freeze now!” 

“During the last several months, countless farmers, and the community-based organizations who serve them, have had their livelihoods thrown into doubt as USDA has deliberated whether or not to honor its own legal contracts,” said Mike Lavender, NSAC Policy Director. “The Honor Farmer Contracts Act unequivocally reiterates a bedrock principle – USDA must honor its own word, and swiftly meet its legal obligations to farmers and organizations by immediately releasing funding on all signed contracts. The National Sustainable Agriculture Coalition thanks Senator Booker and all Members standing alongside farmers in asking USDA to honor its commitments.” 

In addition to Sens. Welch and Booker, the Honor Farmer Contacts Act is cosponsored by U.S. Senators Bernie Sanders (I-Vt.), Tammy Duckworth (D-Ill.), Adam Schiff (D-Calif.), Chris Van Hollen (D-Md.), Ron Wyden (D-Ore.), Martin Heinrich (D-N.M.), Kirsten Gillibrand (D-N.Y.), Angus King (I-Maine), Tina Smith (D-Minn.), Ed Markey (D-Mass.), Dick Durbin (D-Ill.), Richard Blumenthal (D-Conn.), Tammy Baldwin (D-Wis.), Jeff Merkley (D-Ore.), and Sheldon Whitehouse (D-R.I.). U.S. Representative Gabe Vasquez (D-NM-02) will introduce companion legislation in the House. 

Read and download the full text of the bill. 

###