Federal Program Cuts Leave Organic Food Business Facing Loss

By Andi Anderson

Shagbark Seed and Mill, an organic food business located in Athens, Ohio, is reeling from the effects of federal budget cuts that have eliminated funding for a vital program used to purchase local food.

The Local Food Purchase Cooperative Agreement Program (LFPA), a $1 billion initiative, provided a way for food banks, schools, and other food providers to buy locally grown food at a reduced rate. However, the program was cut in March and ended in June, leaving Shagbark with a $500,000 loss in projected sales this year.

The program had a significant impact on Shagbark’s business. Michelle Ajamian, a founding partner of Shagbark, explained that the company had been selling 1-pound bags of dry black beans to all 12 food banks in Ohio, distributing around 300,000 bags annually for the past two years. “And now, it’s over,” Ajamian said, highlighting the abrupt and devastating nature of the cuts.

The cuts came at a particularly difficult time for farmers, who had already planned their crops for the year. “You don’t tell farmers in March that they’re not going to sell the crop they already planned their fields for,” said Ajamian.

The lack of notice left many in the agricultural community scrambling to adjust to the sudden change.

Ajamian described the LFPA program as a “quadruple win,” benefiting farmers, businesses, the local economy, and people in need of food.

The program helped make local food more accessible to food banks, which have seen increased demand due to rising food inflation.

In response to the cuts, Shagbark has already been forced to make staffing adjustments, including layoffs and reduced hours for employees. “And we might have to do more cuts,” said Ajamian, expressing concern over the future stability of the business.

The situation is part of a broader issue for farmers across the country, with other agricultural programs also being reduced or eliminated under the current administration. Ajamian fears these cuts could have long-term consequences for farming in the region.

Photo Credit: gettyimages-fatcamera