The efforts of a financial institution created to fund underserved farmers is being put on pause.

According to a news release, the U.S. Department of Agriculture (USDA) announced in October 2024 the launch of the Southern Farmers Financial Association (SFFA), a bank that would make it easier for underserved farmers to access funding. Black farmers, in particular, face greater challenges in securing loans and often encounter discriminatory practices, Civil Eats mentions.

To create better outcomes, Southern Farmers Financial Association received $20 million in funding through former President Joe Biden and former Vice President Kamala Harris’ Inflation Reduction Act, which would support lending and outreach, hiring full-time staff, and attracting private sector capital.

“Every farmer needs affordable financing. Farmers must have reliable and consistent access to capital to be successful,” USDA Under Secretary for Rural Development Dr. Basil Gooden said in a news release. “For too long, access to capital has been out of reach for small farmers in the southeast region.”

The bank did receive the first round of funding, which was a little over $1 million, Civil Eats reports. The funding went toward hiring a CEO and putting into place the bank’s infrastructure.
The SFFA planned to officially open towards the end of Q1.  However, the organization is unsure when it will receive the remaining funding. This is a result of President Donald Trump’s sweeping executive orders to “terminate” diversity, equity, inclusion, and accessibility (DEIA) efforts “across the entire federal government,” a press release from the White House read. Trump also signed an executive order to dismantle “radical and wasteful DEI programs and preferencing.”
“While we hadn’t used that language around the bank and don’t consider it to be DEIA, we’re in jeopardy for being labeled as such because of their way of looking at this,” said Cornelius Blanding, who is executive director of the Federation of Southern Cooperatives/Land Assistance Fund, a nonprofit that also serves as the lead partner to the SFFA, according to Civil Eats.

The Southern Farmers Financial Association is unsure when it will officially open as planned. The outlet also notes that it may need to adjust guidelines or could even be terminated.

“We’re hoping for the best case and that it will be some kind of modification,”  Blanding expressed, per Civil Eats.