Kentucky is launching a new program aimed at rewarding school districts that buy food directly from farmers in the Commonwealth. Three schools will be awarded $10,000, $8,000 and $6,000 for their efforts to serve local produce and meat.
Dana Feldman, executive director of the Kentucky Department of Agriculture, says farming is the backbone of the state's economy and that it's important for schools to forge relationships with their local producers.
"Students love it because they know that some of their products that they're eating come from the farm down the street," she said.
She added that farm to school programs also come with economic benefits, noting for every dollar spent on local foods, $2.16 is generated in local economic activity. Eligible districts must participate in the National School Lunch Program. Only Kentucky grown or raised products used during breakfast and lunch during the regular school year are eligible, excluding milk.
John Cain, Kentucky Kids Eat Program Director, says research shows children who eat local food at school lunch or breakfast are more likely to eat more fruits and vegetables, with lifelong impacts for public health.
"After food is harvested, produce in particular, starts to lose it's nutrients, within 24 hours of harvest, so the sooner we can get that to the cafeteria and the tray to the children, the better," he said.
Feldman added that districts can apply for the program in the coming weeks.
"Schools have up until July 31 to apply for this program. We have not put the application up yet, but it will be on our Farm to School web page, on our KDA website," she added.
Across the country, nearly two-thirds of schools participating in the National School Lunch Program say they served local foods to students during the 2022-2023 academic year, and spent almost $1.8 billion on local foods, according to the USDA.
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President Donald Trump is set to impose sweeping global tariffs this week, a move expected to spark retaliation against a range of American products including food.
Tad DeHaven, policy analyst at the libertarian think tank the Cato Institute, said farmers in Colorado and across the U.S. who endured losses during Trump's first-term tariffs are again facing uncertainty.
"What's frustrating to me is that taxpayers end up footing the bill," DeHaven pointed out. "Last time around, it cost taxpayers $23 billion in farm bailouts, and I think it looks like we're headed down that road again."
Trump said tariffs, which are taxes on imports mostly paid for by U.S. consumers, will compel companies outsourcing labor to places like China to move their operations back to the U.S. Trump has also floated the idea of replacing income taxes with tariffs in what would amount to a national sales tax.
DeHaven believes Trump's tariff strategy will backfire.
"The administration talks about shrinking government and cutting waste," DeHaven observed. "But I'd argue these trade wars create exactly the opposite: more bailouts, more government spending and more taxpayer-funded damage control."
Republicans in Congress have proposed $230 billion in cuts to ag funding, mostly from SNAP, formerly food stamps. But a recent poll found 60% of Trump voters said cutting SNAP is unacceptable. Trump has also canceled $13 million in funding for Colorado food banks and schools to buy food from local producers.
DeHaven added many U.S. farmers still have not recovered from Trump's first-term tariffs.
"You have to feel bad for farmers, they're getting squeezed from both ends," DeHaven emphasized. "Not only are they losing foreign markets but they are also seeing higher costs at home for essentials like equipment and fertilizer, all thanks to tariffs."
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Cuts at the U.S. Department of Agriculture have affected farming communities nationwide but a national group said its Black farmers remain unaffected.
The Memphis-based Black Farmers and Agriculturalists Association represents more than 20,000 heirs of Black landowners and ranchers across the country.
Thomas Burrell, president of the association, said because of long-standing discrimination, its members, many of whom are farmers or descendants of farmers, have not been impacted by the USDA freeze.
"What our concern has always been, notwithstanding any administrative efforts or the lack thereof, is the constant, unfortunately, of discrimination that prevents our members from being able to participate," Burrell explained. "Key phrase is 'food production.'"
Burrell noted the association's farmers operate under the USDA and still face challenges from the Pigford v. Glickman settlement. He added Congress has introduced multiple measures this year to compensate Black farmers for past discrimination. Last summer, the Biden administration provided more than $2 billion in direct payments to minority farmers affected by USDA discrimination.
Burrell argued tariffs will have both short- and long-term effects on Tennessee farmers and beyond. Agriculture Secretary Brooke Rollins recently announced the USDA will distribute up to $10 billion to agricultural producers through the Emergency Commodity Assistance Program for 2024 crops, with another $20 billion for disaster-affected farmers.
"Now the administration is going to use this $30 billion to sustain these farmers," Burrell observed. "While that pain is being as a result of the tariffs, and hopefully, in theory, at least once the ship rights itself again, it's full speed ahead, and the economy should benefit in the long term."
Burrell pointed out the Secretary of Agriculture has promised tariffs will not harm them and disaster and commodity payments should help. But Black farmers who are long victims of discrimination still struggle to access the benefits. The core issue remains: Are they receiving equal resources to stay competitive?
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A new study says agriculture co-ops are a strong economic force in states like South Dakota - but their future is murky, because of federal tax cuts set to expire.
Farm cooperatives have been around for more than a century, allowing smaller farmers to pool together resources to buy supplies and market their products.
South Dakota State University Ness School of Management and Economics Associate Professor Matthew Elliott helped lead research into co-op profits in North and South Dakota and Minnesota.
Even though corporations and industrial farms have a growing presence in agriculture, he said co-ops have staying power.
"There is consolidation going on to achieve efficiencies, but generally we see cooperatives still maintaining a good business volume in these industries," said Elliott, "and that's been pretty consistent, steady, for a long time."
He said co-ops benefit from the tax cut law enacted during the first Trump administration by allowing income from member sales to be taxed at lower rates.
The study says in 2022, that newer deduction helped generate $255 million in economic activity in South Dakota farming towns.
Republicans in Congress want to extend the broader tax cuts. But skeptics say that would require drastic spending cuts, which would harm rural communities and eat away at farmers' profits.
When focusing solely on the co-op tax deduction, Elliot said it's likely a more effective tool in this part of the country.
"It can be a struggle to get investment interested in our region," said Elliott. "It's one of those ways the dollars we do generate, we can keep here and keep multiplying and growing our economy."
He said those are extra dollars farmers can use to boost worker pay or buy equipment from local dealers at a time when small towns struggle with population loss.
If the deduction expires, observers say these farmers will have higher tax bills.
Overall, the planned extension of the Trump tax cuts has renewed debate about whether they mostly benefit wealthier Americans, and leave middle- and low-income workers behind.
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