President Trump’s proposed fiscal year 2027 budget calls for a nearly 20% reduction in USDA discretionary spending, but the numbers that may matter most to farmers and ranchers are not the agency-level totals. They are the staffing figures. The proposal, released April 3, 2026, projects the Farm Service Agency workforce dropping from 8,135 employees in fiscal year 2025 to just 6,009 by 2027, a reduction of more than 25%. These are the field staff who process loan applications, administer disaster payments, and enroll farmers in conservation programs at local service centers across rural America.
The Natural Resources Conservation Service has already seen significant staffing reductions, falling from 11,542 employees in 2025 to 9,241 in 2026. The proposed FY2027 budget holds NRCS staffing at that reduced level rather than restoring it. Together, the FSA and NRCS are the two agencies that most directly touch the day-to-day operations of working farms. USDA staff cuts of this scale could extend wait times for program enrollment, delay conservation planning assistance, and slow loan processing at a moment when farmers face elevated input costs and tight margins heading into planting season.
USDA staff cuts come alongside deep reductions to research and rural programs
Beyond staffing, the FY2027 budget proposes $20.8 billion in total discretionary USDA funding, a $4.9 billion reduction from 2026 levels. The National Institute of Food and Agriculture faces a $510 million cut to its formula grants, which fund agricultural research at land-grant universities across every state. The administration said it would redirect research funding toward competitively awarded projects rather than pre-determined university allocations. NIFA received a similar but larger reduction in the previous year’s proposal.
Community Facilities grants face a $659 million cut. The Rural Business Service would lose $82 million, and the Agricultural Marketing Service would see a $61 million reduction. The budget also proposes eliminating discretionary Conservation Technical Assistance funding from the farm bill baseline, relying instead on remaining Inflation Reduction Act funds to support that work. Each of these programs serves rural communities in ways that extend beyond individual farm operations, affecting rural hospitals, fire stations, water systems, and local businesses. For more on how this budget fits within the broader USDA policy direction, Agroinformacion has been covering White House farm policy announcements throughout this cycle.
International food aid programs face near-elimination under the proposal
Two major international food assistance programs would be effectively eliminated under the proposed budget. Food for Peace, which provides emergency food aid internationally, would be reduced from $1.2 billion in 2026 to just $97 million. The McGovern-Dole Food for Education Program, a $240 million initiative that provides school meals in low-income countries, would be cut entirely. The administration said Food for Peace can disrupt local food markets in recipient countries and pointed to other aid efforts it intends to maintain.
These cuts are separate from the domestic farm program reductions but are significant for agricultural trade and commodity markets. Food for Peace has historically served as a buyer of U.S. surplus commodities, providing an export outlet for American grain, dairy, and other agricultural products. Reducing or eliminating the program removes that demand from the market at a time when U.S. farmers are already navigating uncertain export conditions. The Essential Air Service program, which subsidizes flights to rural communities, would also see $372 million in cuts, affecting access to regional markets and services for agricultural communities far from major transportation hubs.
Not everything in the budget is a cut for rural areas
The proposal does include some increases. USDA’s Office of Homeland Security and Emergency Coordination would expand from a staff of four and a budget of $1.7 million to 38 positions and $15.3 million. The budget also allocates $50 million for departmental reorganization and the relocation of staff from Washington to regional hubs, a move the administration says will bring USDA closer to the farmers and ranchers it serves.
Congress ultimately controls federal appropriations, and this budget is a proposal rather than a final outcome. The American Farm Bureau Federation responded cautiously, saying it looks forward to working with congressional appropriators to ensure critical programs are funded. The budget document is 92 pages and makes repeated references to eliminating what the administration describes as programs outside USDA’s core agricultural mission. The full proposal was reported by High Plains Journal on April 7, 2026.