logo
Tennessee students, farmers bear impact of USDA cuts to local food programs for schools, food banks

Tennessee students, farmers bear impact of USDA cuts to local food programs for schools, food banks

Yahoo17-03-2025

The USDA has scrapped two local food purchase programs, canceling federal funding that would have been used by Tennessee schools and food banks to purchase fresh food from local producers. (Photo:John Partipilo)
Tennessee students will have less access to locally grown foods and Tennessee farmers will lose out on millions of dollars in purchases after the U.S. Department of Agriculture cut two programs funding local foods for schools and food banks.
The USDA announced around $1 billion in cuts last week due to the cancellation of the Local Food for Schools program and the Local Food Purchase Assistance (LFPA) Cooperative Agreement Program. The cuts come amid efforts by President Donald Trump's administration to slash the federal budget.
The decision reverses an December announcement from the USDA pledging a $1.13 billion investment to continue the programs — which were originally created to respond to the COVID-19 pandemic — into 2025.
About $660 million intended to allow schools and child care institutions throughout the nation to purchase locally produced food has been scrapped, according to the School Nutrition Association. Another $500 million would have supported local food purchases for food banks nationwide.
The Tennessee Department of Education received more than $4.1 million to purchase food from local producers for schools in 2023, according to USDA records. The Tennessee Department of Agriculture was awarded $8.2 million for the LFPA program — money that was used by five Tennessee food banks to buy food from 247 local producers, 142 of which were classified as underserved producers. The USDA defines underserved producers as beginning farmers, veterans, socially disadvantaged farmers and farmers with limited resources (incomes at or below the poverty line or 50% of their area's median income).
When the Tennessee Department of Agriculture missed deadlines to claim $7.2 million for the LFPA program the next year, outcry from constituents led state lawmakers to carve out an equal amount of unspent American Rescue Plan funds from the annual budget to create the 'Farm to Food Banks' program to fill the gap.
Federal funding for the programs for fiscal year 2025 is no longer available and agreements will be terminated after a 60-day notification period, the USDA told participating states, territories and tribes.
We're going to continue to feed the kids, but we will not be able to give them the quality of food that we've been giving.
– Vickie Dunaway, Milan Special School District Food Service Supervisor
Tennessee's agriculture department TDA intended to participate in LFPA25 but had not yet signed any contracts, department Public Information Officer Kim Doddridge confirmed.
'This isn't an abrupt shift — just last week, USDA released over half a billion in previously obligated funds for LFPA and LFS to fulfill existing commitments and support ongoing local food purchases,' a USDA spokesperson wrote in an email to Tennessee Lookout.
Agreements that were already in place under the LFPA/LFPA Plus program will continue to receive funds until the USDA sunsets the program at the end of the performance period. The USDA will focus on its 16 other nutrition programs instead.
'The COVID era is over — USDA's approach to nutrition programs will reflect that reality moving forward,' the spokesperson stated.
Tennessee Department of Education Media Director Brian Blackley wrote in a statement to Tennessee Lookout that the end of the Local Food for Schools program 'will not impact our ability to ensure that Tennessee's most vulnerable children are fed at school.'
Doddridge said farmers across the state may be impacted by reduction in 'available current funding' due to the LFPA25 cancellation. She directed farmers to the TDA and USDA websites for resources.
'TDA will continue collaborating with partners to leverage funding opportunities to help support local farmers and communities now and in the future,' Doddridge wrote.
Agriculture Dept. seeks additional $20M to support farm cost-sharing, development programs
But while the USDA and the Tennessee Department of Education view the programs as 'extraordinary' support during the COVID-19 pandemic, local farmers, food banks and school nutrition officials say the funding cuts will be keenly felt in both food quality and community economies.
Milan Special School District Food Service Supervisor Vickie Dunaway said Friday said she views the cuts as 'going backwards,' moving away from feeding kids fresh foods and returning to processed foods that are less healthy but more affordable.
'I don't think that it's a pandemic thing at all,' Dunaway said. 'I think it's just a matter of moving forward and educating our kids and communities on the proper way of eating.'
Dunaway used Local Food for Schools funding to help pay for school lunches and summer meals. Last year, the Milan Special School District fed students more than 132,000 lunches during the school year and more than 30,800 meals during summer months.
The funding allowed her to partner with a local stockyard to get minimally processed local beef delivered directly to the district. She contracted with local farmers to raise broccoli, purple whole peas, tomatoes, corn and melons specifically for the schools.
'That will obviously have to be cut out, because our budget will not withstand being able to purchase local,' she said. 'Purchasing local, minimally processed food is way more expensive than buying from a distributor.'
But with that higher price tag comes significant benefits: the food is healthier, local farmers and communities receive more support and kids get to see where their food comes from, Dunaway said. Over the summer, her district sent kids home with recipes and whole foods like cabbages, melons or fresh corn on the cob.
'We're going to continue to feed the kids, but we will not be able to give them the quality of food that we've been giving,' Dunaway said.
Jeff Letson owns Hitman Smoked Products, a bacon producer in Clifton, Tennessee. He worked with Mid South Food Bank last year, and is now on his second quarter of purchase orders with Second Harvest Food Bank in Nashville.
When the LFPA program started, his company went from processing 500 pounds of bacon each week to 2,500 pounds. He went from having three employees to 10.
The program's cancellation meant he had to cut his workforce by half. The consequences are felt by everyone who benefited from the program, not just farmers, Letson said.
'Even though that's a small amount of jobs, Clifton, Tennessee is a small community, and it impacts us,' he said. 'There's five more people out looking for a job.'
Letson has contacted Tennessee U.S. Senators Bill Hagerty and Marsha Blackburn about the program cut.
'I do believe in a lot of the Department of Government Efficiency efforts — I think we will all benefit from that in some way — but you just can't do that with a shotgun approach on everything,' he said. 'I hope that there's some of these (cuts) that people can contact their senators and congressmen about and say, 'Here's one that you really need to go back and look at. It's worthwhile.''
Tennessee's agriculture department acknowledged farmers may be impacted by the funding cut, but the department will continue working to support local farmers, Doddridge said.
Second Harvest Food Bank of Middle Tennessee CEO Nancy Keil said in a statement that news of the cut is 'devastating news for the five Tennessee Food Banks serving our state.'
Second Harvest has been and will continue to implement the 'Farm to Food Banks' program funded by Tennessee lawmakers last year after the state's LFPA application bungle. But LFPA25 would have provided federal funding to extend the program, allowing Tennessee food banks to continue purchasing fresh produce, proteins, and dairy from local farmers, Keil stated.
She refers to the program as a 'proven win-win.'
'It supports our food-insecure neighbors, sustains local farmers, and boosts the Tennessee economy across all 95 counties,' she wrote. 'The loss of this $7.7 million funding to support the program is a significant missed opportunity. It impacts the most essential part of our food system — connecting food banks with local growers to provide nutritious food to communities in need.'
SUPPORT: YOU MAKE OUR WORK POSSIBLE

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump says 'changes' are coming to immigration enforcement after complaints from farmers and the hospitality industry
Trump says 'changes' are coming to immigration enforcement after complaints from farmers and the hospitality industry

Yahoo

time8 minutes ago

  • Yahoo

Trump says 'changes' are coming to immigration enforcement after complaints from farmers and the hospitality industry

Trump is signaling that changes are coming to immigration enforcement. He said that farmers and people in the hospitality industry are losing good workers. "We're going to have to use a lot of common sense," Trump said. There may be some changes coming to the Trump administration's approach to immigration enforcement. President Donald Trump said in a Truth Social post on Thursday that both farmers and "people in the Hotel and Leisure business" have said that his approach to immigration enforcement "is taking very good, long time workers away from them, with those jobs being almost impossible to replace." "In many cases the Criminals allowed into our Country by the VERY Stupid Biden Open Borders Policy are applying for those jobs," Trump added. "This is not good. We must protect our Farmers, but get the CRIMINALS OUT OF THE USA. Changes are coming!" At a White House event later on Thursday, he said that "we're going to have an order on that pretty soon, I think." "We can't do that to our farmers," Trump said. "We're going to have to use a lot of common sense." It comes one day after Tom Homan, the Executive Associate Director of Enforcement and Removal Operations, told Semafor that the administration would begin prosecuting companies that employ immigrants living in the country illegally. According to Census data, the agriculture and leisure industries have relatively high proportions of non-US citizen workers. Read the original article on Business Insider

Here's where 'No Kings' protests are happening around Kentucky on June 14
Here's where 'No Kings' protests are happening around Kentucky on June 14

Yahoo

time11 minutes ago

  • Yahoo

Here's where 'No Kings' protests are happening around Kentucky on June 14

Protests in Kentucky are scheduled for June 14, the same day a massive military parade is set to take to the streets of Washington in an elaborate showcase of troops, tanks, weapons and aircraft. The parade, estimated to cost $40 million, coincides with both the U.S. Army's 250th anniversary and President Donald Trump's 79th birthday. In response to the extravagantly costly display, a mobilization of "No Kings" protests have been organized nationwide. Here's what you should know. The protest organizer's website describes "No Kings" as a "nationwide day of defiance" in response to Trump and the military parade, saying, "we're taking action to reject authoritarianism." With an emphasis on nonviolent activism, the website outlines the movement's broad appeal, "from city blocks to small towns," and makes a promise to battle Trump's "ego" in a fight for democracy. "On June 14th, we're showing up everywhere he isn't – to say no thrones, no crowns, no kings," the website reads. Story continues below gallery. The times and addresses of the June 14 protests scheduled in Kentucky can be found below. Events without addresses have private locations, and more details can be found after signing up on the "No Kings" website. Louisville: Noon-4 p.m. Bowling Green: 11:30 a.m.-1 p.m. Danville: 10-11 a.m. Elton: 11 a.m.-1 p.m. Franklin: 11 a.m.-1 p.m. Hazard: Noon-3 p.m. Henderson: 5:30-7 p.m. Hopkinsville: Noon-1:30 p.m. Jackson: 5-7 p.m. Lexington: Noon-3 p.m. Madisonville: 11 a.m.-1 p.m. Morehead: Noon-3 p.m. Owensboro: 11 a.m.-1 p.m. Paducah: 1-2:30 p.m. Shelbyville: 1-3 p.m. New Albany: 10 a.m.-3 p.m. Evansville: 1-3 p.m. Madison: 10 a.m.-noon This article originally appeared on Louisville Courier Journal: 'No Kings' protests happening in these Kentucky locations on June 14

‘Sovereign AI' is poised to boom under Trump. Wall Street is sizing up a multibillion-dollar market
‘Sovereign AI' is poised to boom under Trump. Wall Street is sizing up a multibillion-dollar market

CNBC

time13 minutes ago

  • CNBC

‘Sovereign AI' is poised to boom under Trump. Wall Street is sizing up a multibillion-dollar market

Global artificial intelligence deals under the Trump administration this year have thrust "sovereign AI" into the limelight, bringing to life a new engine to power the AI investment cycle. While the first major wave of AI was tied to innovation spurred by private sector tech companies, Wall Street is now looking for opportunities that are tied to the growth from the public sector. These so-called sovereign AI deals involve a nation's capabilities to produce and control its own AI infrastructure, data, regulations and networks. The term isn't new, but analysts and investors are taking notice of the trend given U.S. President Donald Trump 's enthusiasm to strike AI deals between domestic tech giants and select foreign allies. In May, the president scrapped Biden-era U.S. chip export restrictions , known as the "AI diffusion rule." That move helped pave the way for Nvidia and Advanced Micro Devices to supply chips to Saudi company Humain . "Sovereign AI has risen from the ashes of the Biden AI Diffusion rule to now squarely fit with the Trump Administration's goals to reshape allies in the Middle East around American technology," Ben Reitzes, head of technology research at Melius Research, said in a May note to clients. "Nvidia (along with even AMD and Cisco) now have a spring in their step. … This trend is just starting." Some nations have also released long-term frameworks for their AI public and commercial infrastructure strategies. Canada last December launched the Canadian Sovereign AI Compute Strategy, while India kicked off its IndiaAI Mission in March 2024 . Further, last year, a bipartisan group of U.S. senators rolled out a road map for artificial intelligence policy, seeking a $32 billion annual investment in AI research and development by 2026. Underpinning this trend is the belief that AI will be a key tool in influencing global power dynamics. "With c. $16tn annual global economic value on the line, AI is becoming key in setting the new world order," Bank of America analyst Haim Israel said in a May note. "It is not just the race for technological development but also for resources, supply chains, regulation and standards that are on the line," the analyst added. "Whoever controls AI could have an advantage, possibly reshaping the geopolitical balance of power." Bank of America estimates the global sovereign AI market could be worth $50 billion annually and lead to an "AI infrastructure opportunity" ranging from $450 billion to $500 billion, according to another May note to clients. The firm estimates that at least $2.5 trillion in funding toward AI investments and partnerships have been announced so far this year. This includes projects from Big Tech, recent pledges from the Middle East and North Africa region, the Stargate project — which is a joint venture between OpenAI, Oracle and Softbank — and efforts in the European Union . "These should increase the rollout of AI and improve the economics," Bank of America's Israel said. A new driver for leading AI stocks To capture this momentum, major tech companies are building out product portfolios tied to sovereign AI, framing the technology as a catalyst for national economic and industry growth, national security enforcement, and scientific discovery. For starters, Cisco Systems is "the sovereign AI player no one talks about," Reitzes said in a June 2 note to clients. In May, the networking giant announced it would partner with Saudi Arabia's Humain to build AI infrastructure. Reitzes thinks investors are overlooking the value of Cisco's recent deals in the Middle East , as he said greater sovereign demand could lead the company to see a pickup in AI product orders and spur a breakout in shares. He reiterated his buy rating and $78 price target on the stock, which suggests nearly 20% upside from Thursday's close. Cisco shares have risen 8% this year. "Middle Eastern sovereign entities are unproven, and the investment figures seem cartoonish — but Cisco may have achieved the equivalent of adding a hyperscaler to its customer list," Reitzes wrote. "The company boasts an excellent longstanding relationship with the CEO of Saudi's HUMAIN and other leaders of UAE and Qatar entities — who are not short on cash." Cisco has seen rapid growth in its switching business, which has attracted demand from cloud data center customers. In the fiscal third quarter , Cisco's AI infrastructure orders exceeded expectations for the second quarter in a row, Reitzes noted. The company is "getting on the right side of AI, which can help expand its multiple," Reitzes said. "With HUMAIN, UAE and Qatar, these AI orders could multiply — and start to catch investors' attention and contribute to an acceleration in switching later in FY26 and FY27." Analysts have also pointed to chipmakers Nvidia and AMD as the obvious leaders of sovereign AI, given their multiyear AI infrastructure partnerships with Humain. AMD signed a deal with Humain: A $10 billion collaboration to deploy 500 megawatts of AI compute capacity over the next five years. The agreement involves AMD's deployment of its Instinct GPUs, EPYC processors and ROCm open software ecosystem. Nvidia said it is deploying 18,000 of its most advanced GB300 Grace Blackwell chips to Humain. On news of the Humain deal, Bank of America's Vivek Arya reiterated his buy ratings on Nvidia and AMD and lifted his price targets on each stock by $10 to $160 and $130, respectively, citing "upside to long-term AI opportunity." Arya called the Humain partnership "an important win" for AMD. "Conceptually this would be the first time for AMD on a 'similar' footing as NVDA in terms of engagement in large projects," the analyst said in a note. "However, NVDA appears to be getting direct awards, while AMD appears to be engaged in a [joint venture]-like approach (with Cisco) with some unspecified level of investments." The trickle-down impact of sovereign AI investments Analysts and investors think that growth in sovereign AI will have knock-on positive effects on other parts of the AI industry — such as foundry, optical and memory technology companies. In addition to Nvidia and AMD, T. Rowe Price portfolio manager Tony Wang called out Arista Networks and Broadcom as strong plays for exposure to AI leaders as well as to companies building projects abroad. "I think Nvidia would be the most standard way that the world will build on. Broadcom is more custom," he said. Wang manages T. Rowe Price's Science & Technology Fund (PRSCX) , and its holdings include Nvidia, Broadcom, AMD and Arista Networks, as of March 31. Bank of America's Arya named Marvell Technology another beneficiary of the trend and is bullish on the semiconductor company's earnings growth over the next several years. Though Wall Street is growing keen on this trend now, tech CEOs have been calling for the push of government-led AI investments since the early innings of the artificial intelligence boom. Nvidia CEO Jensen Huang and IBM CEO Arvind Krishna have called for countries to continue building out their sovereign AI capabilities. In 2023, Krishna reportedly advocated for governments to set up large language models, national AI computing centers and common data sets for specific use cases. Huang said on Nvidia's May 28 earnings call that "sovereign AI is a new growth engine for Nvidia." During a fireside chat in 2023, he also highlighted "a recognition that every region and every country needs to build their sovereign AI." The call for greater AI investment goes back even further. In 2021, a group of experts chaired by former Google CEO Eric Schmidt warned about increasing competition between the U.S. and China "in the AI era" and suggested a government AI investment plan that wound up very similar to the one U.S. lawmakers proposed in 2024.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store