The Peru Gazette

Albany, NYS News Release of Jan. 27, 2026 – New York farmers are under increasing economic and financial pressure because of federal policy changes, including higher tariffs, cuts to certain agricultural programs, and stricter immigration enforcement policies, according to a report released today by New York State Comptroller Thomas P. DiNapoli. These challenges could diminish farm production, squeeze profits, and lead to higher prices for consumers.

“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 is an important part of the state’s economy. New York’s 30,650 farms contributed nearly $3 billion to the state’s gross domestic product in 2022 and employed or supported 163,148 jobs in 2019. However, DiNapoli’s report identified impacts to the financial viability of family farms in the state from recent federal actions.

USDA Funding

The U.S. Department of Agriculture (USDA) assists farmers through grants, subsidies, loans and technical support. In 2022, 3,275 farms in New York received $66.3 million in direct federal payments, excluding crop insurance payments. In addition, the state received $382 million in USDA payments from three major programs, the Natural Resource Conservation Service, the Farm Service Agency and Rural Development. These programs fund a wide variety of projects on and off the farm, including housing, community water systems, renewable energy projects, guaranteed farm loans, conservation reserve programs and technical assistance for environmental projects. Nearly every county in New York receives assistance from at least one of the programs.

DiNapoli’s report breaks down changes to federal funding for agriculture, including reductions over 10 years of $1.8 billion for conservation and $150 million to forestry programs, and a cut of $84 million in federal fiscal year (FFY) 2026 appropriations for the Farm Service Agency. While some commodities and crop insurance programs will receive increased funding, these changes are likely to have limited impact in New York. New York’s dairy sector may be the only local commodity to see a significant benefit since most programs are geared toward crops like sugar, wheat and cotton not widely grown in New York. Inflation, coupled with flat funding for other programs, may undermine USDA’s support for farmers and rural communities in New York.

In addition, the decrease in funding for nutritional assistance programs will mean less money spent at grocery stores, farmers markets and for purchases by food banks, resulting in a loss of markets for farms.

Tariffs

Tariffs are impacting farmers, affecting their ability to sell their products around the world, and increasing the cost of supplies and equipment for farms that already operate on thin margins. New York dairy exports declined by as much as 12% in the first half of 2025 vs. 2024, and U.S. soybean sales to China dropped from 985 million bushels in 2024 to 218 million in the first eight months of 2025.

DiNapoli’s report found that prices have climbed for imported fertilizers, steel and farm equipment. In July, the National Corn Growers Association found that fertilizer prices had increased from the first of the year between 4.7% and 37.6%, depending on the type of fertilizer. Increased uncertainty around markets and production costs makes it tougher for farmers to plan for future growing seasons.

Immigration

New York farms employed more than 56,000 people in 2022, excluding contract farm laborers, according to the USDA. Many of the workers are immigrants who plant and pick crops and work with farm animals. In 2023, nearly 10,000 were employed through the seasonal H2A federal guest worker visa program, but New York’s Agriculture Commissioner estimates as many as half of the farm labor workforce in the state was undocumented in 2018.

Recent immigration enforcement has been a concern for many farmers, especially those in the dairy industry. Even the U.S. Department of Labor recognizes this as a serious issue for the nation’s food supply, saying there could be significant disruptions to production costs and it threatens the stability of domestic food production and prices for U.S consumers.

The report noted that the loss of farm employees at crucial points in the growing season, or in the case of dairy farms, at any point in the year, could devastate individual farms.

Report

Federal Impact: New York State Farming and Agriculture

Related Reports

Federal Actions Threaten to Exacerbate Rising Food Insecurity

A Profile of Agriculture in New York State