Vasquez, Booker introduce bill to prevent USDA from freezing farm contracts

Organ Mountain News report

WASHINGTON - U.S. Rep. Gabe Vasquez, D-N.M., and Sen. Cory Booker, D-N.J., have introduced the Honor Farmer Contracts Act of 2025, a bill that would require the U.S. Department of Agriculture to fulfill existing contracts with farmers and prohibit the cancellation of agreements unless terms are violated.

The proposed legislation directs the USDA to release funds tied to signed agreements and ensure overdue payments are made to producers. It also seeks to prevent the agency from canceling contracts unless farmers or agricultural organizations fail to meet the agreed-upon terms.

“Under Elon Musk’s DOGE, the USDA has failed to honor its agreements, leaving farmers and rural communities in financial limbo,” Vasquez said in a statement. “This bill will hold the agency accountable, ensuring our farmers receive the support they were promised to continue feeding our communities and driving our rural economies.”

According to Vasquez’s office, the USDA under the new administration has paused reimbursements and canceled some agreements based on the inclusion of diversity and equity language, affecting small farmers and historically underserved communities.

In New Mexico, several projects are awaiting decisions from the USDA, including the Community Food Project grant for Frontier Food Hub in Silver City and the Quivira Coalition’s Partnership for Climate-Smart Commodities funding. The cancellation of the Local Food Purchase Agreement program has also affected food banks and their suppliers.

“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,” Booker said. “USDA’s refusal to pay what is owed to farmers and the organizations that support them is theft, plain and simple.”

The bill has garnered support from several members of the House Agriculture Committee, including Reps. Chellie Pingree, D-Maine; Jim McGovern, D-Mass.; Josh Riley, D-N.Y.; Teresa Leger Fernandez, D-N.M.; Jill Tokuda, D-Hawaii; McClain Delaney, D-Md.; and Nikki Budzinski, D-Ill.

A coalition of 352 farm and food organizations has expressed support for the legislation. In a letter to congressional agriculture committee leaders, the groups emphasized the importance of honoring USDA contracts to prevent harm to farmers and rural communities. The letter states, “The USDA’s continued failure to honor its contractual obligations will be detrimental to American agriculture, harming farmers, small businesses, and other project participants who have invested significant time and resources.”

Click here to view the full letter and list of endorsing organizations.