Navigating policy shifts

Federal policy decisions in Washington, D.C., continue to shape the outlook for farmers and irrigation professionals, with key programs caught in a cycle of uncertainty. From conservation funding delays to trade policy shifts and evolving farm income projections, these developments have a direct impact on planning and operations. While the U.S. Department of Agriculture’s latest forecast offers some positive signs, long-term stability remains a concern for growers making critical water management decisions.

For irrigation professionals, the challenge is twofold: helping growers navigate financial uncertainty while ensuring that key conservation programs and federal investments in water efficiency remain on the policy agenda.

Economic pressures and farm income trends

Recent USDA projections offer a mixed picture for farm income in 2025. While net farm income is forecast to increase by 29.5% — following two consecutive years of decline — this increase is largely driven by a $33.1 billion jump in direct government payments, including ad hoc disaster relief.

“Even with projected gains in net farm income, growers are still facing uncertainty about long-term farm policy,” says Nathan Bowen, vice president of advocacy and public affairs at the Irrigation Association. “Programs that help farmers manage water efficiently need to be stable and predictable. It’s hard to plan multiyear conservation investments when funding is uncertain.”

While total production expenses are expected to decline slightly in 2025, input costs remain a significant factor. Fertilizer costs, in particular, have been volatile due to trade disputes and supply chain disruptions, further complicating growers’ decision-making.

Zippy Duvall, president of the American Farm Bureau Federation, highlights the impact of these challenges as another farm bill deadline approaches: “For a third straight year, farmers are losing money on almost every major crop planted. As the new deadline approaches, we ask the president to continue to look for ways to avoid imposing tariffs that will further drive up the cost of fertilizer and other supplies, and could reduce access to markets for the farm and ranch families dedicated to keeping America’s pantries stocked.”

Conservation program uncertainty

Federal conservation programs have long played a role in supporting growers who implement water-efficient irrigation practices. However, uncertainty over the future of these programs has left many producers in limbo.

Earlier this year, funding for key USDA conservation initiatives — including the Environmental Quality Incentives Program and the Conservation Stewardship Program — was temporarily frozen as part of a broader review of Inflation Reduction Act spending. While some funds have been released to honor existing contracts, questions remain about future program availability.

The USDA has projected a 15.1% increase in conservation program payments for 2025, reflecting a broader policy focus on sustainable agricultural practices. However, with the farm bill still unresolved and broader government spending debates ongoing, stakeholders are watching closely to see how these programs will be prioritized.

“Programs like EQIP and CSP provide essential resources for farmers looking to improve efficiency and adopt better water management strategies,” Bowen says. “Uncertainty around federal funding makes it harder for producers to commit to long-term investments in conservation.”

“Uncertainty around federal funding makes it harder for producers to commit to long-term investments in conservation.”
— Nathan Bowen, vice president of advocacy and public affairs, Irrigation Association

Trade policy and input costs

A spate of announcements by the new administration on imposing tariffs on a number of individual trading partners, as well as specific types of imports, has injected uncertainty into the market. While discussions around new tariffs continue, concerns remain about potential cost increases for essential irrigation components, including steel and aluminum used in irrigation system infrastructure.

Higher input costs have already weighed on growers, with irrigation equipment and fertilizer prices fluctuating in recent years. Canada, a key supplier of potash, is one of the largest trade partners potentially affected by the administration’s policy decisions.

Duvall emphasizes the importance of minimizing disruptions: “Farm Bureau supports the goals of security and ensuring fair trade, but farmers and rural communities often bear the brunt of tariffs and tariff retaliation. Mexico, Canada and China are the three largest agricultural trading partners. Canada is also the leading supplier of potash, a key ingredient in fertilizer.”

USAID funding freeze and agricultural markets

Recent freezes on international food aid funding have raised concerns about their impact on U.S. agriculture. With large quantities of U.S.-grown commodities designated for humanitarian relief currently stalled in ports and warehouses, some lawmakers have urged the administration to unfreeze funds and resume shipments.

Sen. Jerry Moran of Kansas stresses the urgency of the situation: “Time is running out before this lifesaving aid perishes. Food stability is essential to political stability, and our food aid programs help feed the hungry, bolster our national security and provide an important market for our farmers, especially when commodity prices are low.”

Rep. Sharice Davids of Kansas echoes these concerns, noting the economic ripple effects of the aid pause: “My team has heard from many who have lost their jobs, small businesses facing bankruptcy and Kansas farmers struggling to sell their crops. This level of irresponsibility cannot go unchecked.”

A call for engagement

With so much uncertainty at play, industry leaders emphasize the importance of continued engagement with policymakers, says Bowen.

“There’s a lot happening in Washington right now that affects the irrigation industry,” he says. “Whether it’s conservation program funding, trade policy or farm bill negotiations, it’s critical that irrigation professionals and growers remain engaged in these discussions.”

Organizations like the Irrigation Association, Farm Bureau and commodity groups continue to advocate for policies that support long-term agricultural sustainability and economic stability.

“Policymakers need to hear directly from the industry about how these decisions impact water use, farm profitability and broader agricultural supply chains,” Bowen adds.

Luke Reynolds is the associate director, government and public affairs at the Irrigation Association.