Nelson, whose farm is in the northeast corner of Louisiana, sees a desperate need for the SFFA’s reinvestment in smaller operations. Small farmers near him have faced many problems in recent years, such as climate-change impacts, land loss, and being denied financial assistance.
Willis Nelson and son Wil’laddyn Nelson standing in a soybean field on the Nelson & Sons Farm. (Photo credit: Willis Nelson)
“I’ve been seeing with all the farmers that there is difficulty in making their cash flow,” says Nelson, who is also a current member of the Federation and a board member of the National Black Growers Council. “It’s been a rough four years for the Southeast.”
Considering the high cost of starting and scaling farming operations, many farmers never see investment returns, says Blanding. And farms that are smaller in acreage are more vulnerable to a number of issues that can quickly become financially burdensome.
Climate change—specifically extreme drought and floods—causes many issues for small farmers in particular. With the more intense heat, drought, and storms brought on by the changing climate, “It’s not the original growing seasons that we’re used to,” Nelson says. His farm has been working to keep its yields up and keep up with inflation.
Lenders often want to see the farm’s profitability alongside other factors such as income, credit score, and business plan. Because of the extreme weather, farmers with smaller operations suffer more substantial losses than larger farmers—making it more challenging to get the capital they need to stay afloat.
Alongside climate change, the changing demographics of the farming community creates another challenge. “Some of us [farmers of color] are still losing land,” Nelson says. Additionally, most land in the area is passed down through succession, from one generation to the next, but the youth no longer have as much interest in farming or they lack the resources to start. In many places, people have sold their land or private entities have taken it over. “It’s not family farming anymore,” Nelson says.
“Agriculture is a huge and important part of what this country is. The more people who are part of it and succeeding in it, the better off we are as a nation.”
Burkett also sees medium-size farming operations, or those with gross sales between $100,000 and $400,000 annually, facing outsize problems. “Mid-size farmers—what I call true family farms—are totally being squeezed out” as many farms in the area have had to cease operations or downsize, he says. Farms can either get really big or stay small, says Burkett.
“It just costs so much to do business now with the cost of equipment, labor, industry requirements, safety, rules and regulations,” Burkett says. “You’ve got to have a full-time man or woman just to keep up with those targets.”
Nelson believes a cooperative green bank could help family farmers navigate challenges like these. On his farm, a bank loan would help him carry out certain upgrades, such as installing underground irrigation to prepare for drought.
In the absence of a bank like the SFFA, Nelson had to go through the USDA’s cost share program, known as the Environmental Quality Incentives Program (EQIP), to get the equipment he needed to drain the water from his land after a recent flood. The program covered 70 percent of the cost, but Nelson still had to put up 30 percent, impacting other farm needs. And while programs like EQIP are helpful, the funding is limited, not guaranteed, and can require a lengthy wait.
Additionally, some EQIP funding has been paused since the start of the new administration while the USDA conducts a review of grant contracts to determine if they align with President Trump’s executive orders rolling back climate projects and work that prioritizes equity or diversity. While a court ordered the funds to be unfrozen, the agency has only released small batches of that money.
EQIP was one of several programs that got a bump in funding from the Biden-era Inflation Reduction Act for farm projects that prioritized climate goals, so some farmers’ contracts may also be at risk of cancellation. As funding through EQIP and the vast suite of farm programs the USDA runs becomes more uncertain, SFFA could become an even more vital resource—assuming it continues.
