WASHINGTON —Today, House Small Business Committee Ranking Member Nydia M. Velázquez (D-NY) released a new staff report detailing how Trump Administration policies are accelerating the collapse of small farms, deepening the rural economic crisis, and threatening the long-term stability of America’s food system.
The report, Breaking the Family Farm: How Trump Administration Policies Are Crushing Small Agriculture, outlines how a combination of trade wars, labor crackdowns, and cuts to critical federal programs are pushing family farms to the brink; while large, consolidated operations continue to gain ground.
“Family farms are the backbone of rural America and a cornerstone of our small business economy,” said Velázquez. “But under the Trump Administration, they are being squeezed from every direction—rising costs, shrinking markets, and disappearing support. This is a direct threat to the survival of Main Street in rural communities.”
The report highlights the loss of lost thousands of U.S. farms in 2025 alone, continuing a decades-long trend of consolidation as smaller producers struggle to stay afloat. With nearly all family farms classified as small businesses, their decline represents a broader erosion of economic opportunity across rural America.
For years, farmers have faced tight margins, but the Administration’s policies have intensified the crisis. Falling commodity prices have left many producers selling crops below the cost of production, while the cost of essential inputs has surged. At the same time, federal support has failed to keep pace with growing losses, leaving farmers increasingly reliant on debt to survive.
Key Findings of the Report Include:
· Escalating Financial Distress: Farm bankruptcies are rising sharply, and smaller farms are more likely to be forced to shut down permanently.
· Rising Costs from Tariffs: Sweeping tariffs have driven up the price of critical agricultural inputs, forcing farmers to pay more without increasing their ability to compete.
· Loss of Global Markets: Retaliatory trade measures have handed key export markets to foreign competitors, reducing demand for American-grown products and cutting into farm revenues.
· Severe Labor Shortages: Aggressive immigration enforcement has reduced the agricultural workforce, leaving crops unharvested and threatening supply chain stability.
· Healthcare Affordability Crisis: Rising health insurance costs are forcing farmers to make impossible choices between coverage and keeping their operations running.
· Cuts to Critical Programs: The elimination of local food purchasing initiatives and reductions in federal support have stripped small farms of reliable markets and essential resources.
· Weakened Rural Economies: Cuts to programs like SNAP are reducing economic activity in rural communities, hurting farmers, retailers, and local businesses alike.
The report also details how the Administration’s dismantling of key institutions and programs, from agricultural support services to international food aid, has further limited opportunities for small farmers to access markets and remain competitive.
“Instead of providing stability, this Administration has created chaos,” Velázquez continued. “Farmers are being locked out of key markets, priced out of essential inputs, and left without the support they need to survive. If we don’t act, we risk losing not just farms, but entire rural communities.”
The findings underscore urgent calls from farmers, agricultural leaders, and bipartisan policymakers for immediate action to stabilize the farm economy and prevent further losses. Without meaningful intervention, the report warns, the U.S. risks accelerating farm consolidation, weakening domestic food production, and undermining rural economic resilience.
For a full copy of the report, click here.
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