USAID’s Future Uncertain as Major Layoffs Pause Global Food Aid Programs
Louisiana rice farmers could face significant challenges as the U.S. government contemplates drastic cuts to the U.S. Agency of International Development (USAID). The agency, a pivotal player in global food assistance, is under threat following efforts to downsize its workforce dramatically.
Michael Fruge, owner of Parish Rice in Eunice, highlighted the longstanding absence of USAID in agricultural discussions. “They talk about Mexico because it changes,” he explained. “They talk about India because they put export bans on long grain rice. But food aid has just been there. It just hasn’t been talked about because it’s just there.”
The situation escalated when former President Donald Trump, in collaboration with Elon Musk, initiated layoffs affecting thousands of USAID employees and suspended various international programs. These moves aimed to implement a broad freeze on foreign assistance.
In a recent development, a federal judge issued a restraining order on Friday, temporarily halting the administration’s plans to reduce USAID’s workforce from 10,000 to fewer than 300 employees. Despite this, the suspension of USAID’s international aid initiatives, which allocate billions to U.S. farms, remains in effect, posing potential repercussions for Louisiana’s agricultural sector.
Lousiana’s rice producers are integral to programs like Food for Peace and McGovern-Dole International Food for Education and Child Nutrition. Rice from Louisiana is distributed globally, reaching nations such as Haiti, Iraq, and Ukraine.
Michael Klein from the USA Rice Federation emphasized the significance of food aid, stating it ranks among the top 10 national rice purchasers. In 2024, USAID procured over $126 million in U.S.-produced rice, valued for its high caloric content and long shelf life.
While precise figures on Louisiana’s rice contributions to USAID are unclear, Klein noted that food aid constitutes a substantial portion of the state’s rice exports. Approximately 75% of Louisiana’s rice cultivation is concentrated in Acadia, Jeff Davis, Vermilion, Evangeline, and St. Landry parishes, according to recent data.
“The reality is we just don’t even know the full extent of what is happening,” Klein remarked. “It’s concerning, but we just don’t know how it’s going to impact the industry as a whole or Louisiana specifically.”
Major rice milling operations like Supreme Rice in Crowley and Farmers Rice Milling Company in Lake Charles have benefited from USAID funds, though not all companies are directly contracted with the agency.
David Warrington, CFO of Powell Group, owner of Farmers, confirmed the absence of USAID contracts for their company. Meanwhile, Supreme Rice CEO Bobby Hanks has previously supported food aid initiatives, referencing former Secretary of Defense James Mattis by saying, “if goodwill programs like these are not fully funded, then I need to buy more ammunition.”
State Representative Troy Romero is actively working to protect Louisiana’s rice interests within USAID’s framework. “When the Trump administration looked into USAID, they found that numerous dollars were going to some crazy things that conservatives may have a problem with,” Romero stated. “They’re going to reinstate the stuff that is really important. I cannot imagine that program—as good as it is—would be one of the ones that they would cut out.”
With approximately half of the rice from Louisiana and Arkansas being exported, and an estimated 5% to 10% directed towards food aid, any disruption could lead to market saturation and falling prices. Fruge cautioned that while efforts to reduce wasteful spending are underway, the long-term effects on the rice industry and local farmers remain uncertain.
