AMS Grant Programs

(Agricultural Marketing Service)

Department of Agriculture

Proposed Cut

$61M

% Reduction

100.0%

Action Type

elimination

Who Is Served

Small and mid-size farmers; specialty crop producers; local food systems

Summary

The USDA's Agricultural Marketing Service (AMS) runs competitive grant programs that help farmers reach markets, including the Specialty Crop Block Grant Program and grants supporting local and regional food systems. The FY2027 budget proposes eliminating these grant programs entirely, cutting $61 million (a 100% cut to the grant funding), while keeping AMS's core market regulatory functions. The administration argues the grants are non-essential and says industries should fund their own marketing through tools like commodity checkoff programs.

Who Is Affected

The cut targets grants that flow to small and mid-size farmers, specialty crop producers (growers of fruits, vegetables, tree nuts, and nursery crops), and local food businesses. Funding is distributed widely: for example, the Specialty Crop Block Grant Program recently awarded about $72.9 million to state agriculture departments in 56 states and territories, supporting 586 projects in areas like marketing, research, and education. State departments of agriculture, universities, farmer cooperatives, and community food organizations that pass these funds to local projects would lose this federal support.

What this cut would actually mean

If enacted, competitive marketing and local-food grants that many small growers rely on would stop, forcing farmers and states to find other money or cancel projects for pest management, food safety, marketing, and expanding sales of fruits and vegetables. Because grants like the Specialty Crop Block Grant Program help level the playing field for smaller producers who cannot afford large marketing efforts alone, ending them could slow the growth of local food systems and make it harder for small and mid-size farms to compete and stay in business. Larger commodity groups can shift to self-funded checkoff programs, but specialty crop and local-food producers have fewer such alternatives.

Why this hits Alabama harder

This cut wipes out USDA grants that mainly help small and mid-size farms, specialty crop growers, and local food systems, and Alabama has a lot more of those small operations than the country as a whole. In 2022, the average Alabama farm was just 231 acres, less than half the national average of 463 acres, showing how much more Alabama agriculture leans on small and mid-size farmers who rely on these grant programs. Because these farmers make up a bigger share of Alabama's ag economy than the U.S. average, losing this $61 million program would likely hit Alabama farmers harder than farmers in most other states.

Census of Ag Reflects Reality of Tough Farm Economy — Alabama Farmers Federation reporting that Alabama's average farm size grew to 231 acres in the 2022 Census of Agriculture, far below the national average, and that Alabama lost 8% of its farms between 2017 and 2022.
Farms and Farmland ACH22-3 — USDA NASS 2022 Census of Agriculture highlights showing the U.S. average farm size rose to 463 acres, giving the national benchmark used to compare against Alabama's much smaller average farm size.
Top Alabama Agriculture Facts From the Most Recent Census of Agriculture — Farm Flavor summary of Alabama's 2022 Census of Agriculture data, including the state's average farm size of 231 acres and total farmland acreage, underscoring the prevalence of smaller farming operations in Alabama.

Sources

Trump Budget Request Cuts Nearly $5 Billion From USDA | Civil Eats — Reports the White House FY2027 request to cut the Agricultural Marketing Service by $61 million and notes the programs AMS houses.
USDA Budget Proposal Signals Shift Away From Food Aid, Rural Development | DTN/Progressive Farmer — Details the $61 million AMS cut and the administration's justification about ending recurring grant carve-outs.
Proposed budget would cut USDA funding, programs | Produce Processing — Confirms the $61 million AMS cut affects programs including the Specialty Crop Block Grant Program.
USDA Announces $72.9 Million in Grant Funding Awarded through Specialty Crop Block Grant Program | AMS — AMS figures on the reach of the Specialty Crop Block Grant Program: about $72.9 million to 56 states and territories for 586 projects.
Specialty Crop Block Grant Program | Agricultural Marketing Service — Official AMS page describing eligibility (state agriculture departments in all 50 states, DC, and territories) and purpose of the grants for specialty crop competitiveness.
President proposes slashing USDA's 2027 budget by 19% | Feedstuffs — Notes the $61 million AMS cut and the proposal for industries to fund their own marketing through commodity checkoffs.