19-02-2025
'We really don't have a plan B': Minnesotans detail impacts of USDA grant freeze
A sunflower farming operation in Morrison County and a fast-growing, Minneapolis-based cereal maker are among the family-owned businesses facing an uncertain future following the Trump Administration's freeze on U.S. Department of Agriculture grants.
Despite court orders to reverse the action, many federal programs remain paused and cuts to the federal workforce have caused major disruptions in agency operations.
Lawmakers in the Minnesota Senate on Monday heard from Minnesotans impacted by the freeze, with major impacts to the state budget looming should critical agricultural programs face federal funding cuts.
Tom Smude, a sunflower farmer in Pierz who operates a sunflower processing plant, told senators he took out a temporary loan to majorly expand his operations after he received a $530,000 reimbursement grant from the USDA's Resilient Food Infrastructure Systems Program.
Smude's operation supplies sunflower byproduct to Minneapolis-based cereal maker Seven Sundays.
Seven Sundays co-founder Brady Barnstable said incorporating the nutritious sunflower protein into his products helped the business nearly double in size, selling tens of millions of bowls worth of cereal annually and, as a result, supporting regenerative sunflower farms in Minnesota.
With Seven Sundays landing deals with major retailers such as Target, Walmart and Costco, the expansion of Smude's sunflower processing operation can't be put on hold.
"Due to the unique nature of this supply chain – the fact that it's up-cycled – we don't really have a plan B," Barnstable said. "This is Tom's baby."
During the committee, Minnesota Department of Agriculture Commissioner Thom Petersen detailed a wide range of state programs that are facing uncertainties.
Meat and Poultry Inspection, for example, has seen the federal funding match decline from 50% to 31%.
"To have reduced inspection means reduced hours at the plants for farmers that are looking to get those cattle into those plants," Petersen said. "So that's a real concern if we have to dial back on that."
Watch the full committee hearing here:
