Small Businesses and Farmers in Financial Limbo as Funding Standoff Continues

Talking about his clients, Funk said his business and subcontractors have $10 million in REAP contracts with 67 farms that were either under construction or in planning stages but are now paused because farmers do not know what is going to happen. The grants amount to about $4 million, with $6 million in private investment also involved. The projects also are expected to help farmers reduce their energy costs by as much as $20 million over time.

For farmers, about $500,000 in reimbursements are currently frozen. “Those are projects that are done, and we’re waiting on the federal government to reimburse these projects. That’s not money I spent, but the farmer has. All of our funding is still frozen due to this executive order, and that’s what USDA has told us,” Funk said.

Funk has been reaching out to members of Congress in eastern Washington because at least 67 farmers across two congressional districts are affected.

Even before the funding freeze, Funk said he had been working to diversify the business away from such heavy reliance on USDA. However, the abrupt halt of contracts caught him and others off guard.

“Slamming on the brakes like this for the business community does not give anybody time to strategize, to plan or pivot. It’s just been a hard stop, so that’s been one of the more frustrating parts of this,” he said.

Beyond his own small business and contracts with farmers, Funk said it would be “chilling” to future investors if they believe any new administration can come in and unilaterally cancel contracts with businesses.

“The perspective I will channel to you from all of the farmers is, change future programs. You’ve got the ability to do that, but honor the contracts that you have signed,” Funk said.

He added, “What bank is going to finance long-term infrastructure? That transcends administrations.”

PROGRAM’S PURPOSE

REAP was traditionally a smaller program at USDA until the IRA provided $2 billion in additional funding over 10 years. REAP offers grants and loans for small rural businesses and farmers with the maximum grant award capped at 50% of the project costs. Grants are capped at $1 million for renewable-energy projects, but loan guarantees can reach up to $25 million and cover 75% of project costs.

A lot of the projects Zero Emissions Northwest worked on were smaller, but they could save a wheat farmer $10,000 or so annually in energy costs while improving their resiliency. Funk also noted nearly all the projects use American equipment such as solar panels or irrigation pumps.

“Then it’s being installed by American workers. It’s helping American businesses,” he said, adding, “We align with what Trump wants. We really believe we are aligned with unleashing American energy, and we’re focusing on all of those things.”

For now, a lot of farmers have been patient, mainly because they are accustomed to dealing with factors that are out of their control such as the weather or grain prices, Funk said.

“There are so many things outside of their control, and this is just another one,” he said. “A lot of them think this funding will come back because our projects are good ones.”

SCRAMBLING ON WHAT TO DO NEXT

Funk shared an email from vegetable grower in Washington state because the grant funding was primarily to help the grower comply with state energy codes that are pricing the farm out of business. The grant funding is frozen, so now the farm is scrambling to try to figure out what to do next. The farm employs 30 workers.

“I really feel for that farm because it’s tough to be a small farm already,” Funk said. “Those are the people who are primarily challenged by this.”

Also see “USDA Freezes Conservation Funds, Other Programs, Leaving Some Farmers in Financial Limbo” here:

Chris Clayton can be reached at [email protected]

Follow him on social platform X @ChrisClaytonDTN

(c) Copyright 2025 DTN, LLC. All rights reserved.