Maryland Farmer Faces Financial Ruin After Losing Lucrative School Contracts Due to USDA Cuts

Local Agriculture Hit Hard as Federal Funding Dries Up

For years, Maryland farmer Jacob Reynolds supplied fresh produce to public schools across the state through a USDA program connecting local growers with educational institutions. But now, devastating budget cuts have left him without buyers—and his farm on the brink of collapse.

"This was 60% of our business," Reynolds told Breaking Now News. "Losing these contracts doesn't just hurt me—it hurts the kids who relied on fresh, local food in their cafeterias."

How the USDA Program Worked

• The Farm to School initiative provided grants to connect local farmers with school districts
• Schools received federal reimbursement for purchasing local produce
• Over $10 million flowed to Maryland farms annually through the program
• More than 300 school districts participated statewide

The Domino Effect of Budget Cuts

When Congress slashed USDA funding last fall, the program was among the first casualties. Now:

1. Farmers like Reynolds are scrambling to find new markets
2. Schools are reverting to cheaper, processed foods from national distributors
3. Local economies are losing millions in agricultural revenue
4. Students may see nutritional quality decline in school lunches

"We're All Paying the Price"

Reynolds isn't alone. Across Maryland, small and mid-size farms report losing 30-70% of their income overnight. Some have already begun selling land or laying off workers.

"This was supposed to be the future of farming—good food for our communities and stable incomes for farmers," Reynolds said. "Instead, we're back to struggling while big agribusiness gets richer."

What's Next for Local Food Systems?

Advocates are pushing state lawmakers to create a Maryland-funded replacement program. But with budgets tight, the proposal faces stiff opposition.

Meanwhile, Reynolds has started a CSA program to stay afloat, but admits it won't replace his lost school business. "We'll make it through this season," he said. "After that? I don't know."

What Do You Think?

• Should states step in when federal food programs get cut?
• Is locally-sourced school food worth the higher cost?
• Are we setting up small farms to fail by making them dependent on government programs?
• Would you pay higher taxes to keep programs like Farm to School running?
• Is this just the market working—should inefficient small farms be allowed to fail?