Arizona farmers could face bankruptcy due to federal funding freeze

PHOENIX (AZFamily) — Many American small businesses are in limbo, waiting to see how they’ll be impacted by the escalating trade war and a freeze on federal grants. Dozens of Arizona business owners say they were counting on federal grants to help them expand and improve.

One of them is Rachel Opio, an urban farmer in Phoenix who owns the Little Lighthouse Farm in her backyard. “I’m truly here to steward the land and regenerate the soil while feeding the community real food: nutrient-dense produce,” she said.

She jumped into this venture in 2022 to cope with the loss of her mother. Since then, it’s grown into a business with the help of several federal grants that help her sell produce at affordable prices and make it accessible to people in her community. “Eventually, I plan to do this on a much larger scale and feed way more people than I’m currently feeding,” said Opio.

However, with the funding freeze, her grants to add infrastructure to her farm are on hold. She also planned on tapping into the funds from the Rural Energy for America Program (REAP) to help her start a rural farm this year. “It’s just really unfortunate, you know? It truly is,” said Opio,

Jason Lowry, with the nonprofit Local First Arizona, said more than 70 rural businesses, including farms, in the state applied and were approved for about $15 million through REAP. He explained the program incentivizes businesses to invest in clean energy and efficiency projects by partially reimbursing owners when they buy eco-friendly equipment, which can, at times, cost tens of thousands of dollars.

However, he said those businesses are on the hook for everything. “It could likely cause a chain reaction of bankruptcies across the state and country. And it has left these rural business owners and farmers in a lurch,” said Lowry.

Opio hopes lawmakers will have an answer to undo the freeze fast. “Really think about where your food is going to come from if the farmers can’t afford to grow it,” said Opio.

Arizona’s Family reached out to everyone on the Arizona congressional delegation asking what is being done to help our farmers. Rep. Yassamin Ansari’s team responded and said the Democratic congresswoman was discussing the issue with fellow Democrat Arizona Attorney General Kris Mayes during a tele-town hall on social media Wednesday night.

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