New York Farms Struggle Amid Federal Policy Changes

By Blake Jackson

New York farmers are facing growing economic and financial pressures due to federal policy changes, including higher tariffs, cuts to certain agricultural programs, and stricter immigration enforcement, according to a report released by New York State Comptroller Thomas P. DiNapoli. These challenges threaten farm production, reduce profits, and may lead to higher consumer prices.

“There is real concern in rural New York about federal cuts, tariffs and labor shortages,” said DiNapoli. “New York’s farms are a vital part of the state’s economy and our local food supply, and we need policies that strengthen, not undermine their production and that lower, not drive up, prices in the grocery store.”

Agriculture remains a critical part of New York’s economy. In 2022, the state’s 30,650 farms contributed nearly $3 billion to GDP and supported 163,148 jobs in 2019. DiNapoli’s report highlights the impact of federal actions on the financial stability of family farms.

USDA programs provide grants, loans, and technical support, with 3,275 farms receiving $66.3 million in direct federal payments in 2022, while the state received $382 million from programs like the Natural Resource Conservation Service, Farm Service Agency, and Rural Development.

However, funding cuts of $1.8 billion for conservation, $150 million for forestry, and $84 million for the Farm Service Agency in FFY 2026, alongside flat or limited support for crops outside New York’s main commodities, threaten local farm viability.

Tariffs are also affecting exports and raising input costs. New York dairy exports fell by 12% in early 2025, while soybean sales to China dropped sharply. Fertilizer and equipment prices have risen up to 37.6% this year.

Labor challenges add pressure, as New York farms employed over 56,000 workers in 2022, many of whom are immigrants. Increased immigration enforcement, particularly impacting dairy operations, risks disrupting production and raising costs for consumers.

Photo Credit: gettyimages-hirurg