Potential USAID Workforce Reduction Raises Concerns for Louisiana Rice Industry
Louisiana rice producers are closely monitoring recent developments that could alter the landscape of international food aid programs. The U.S. Agency of International Development (USAID), a key player in global food assistance, is facing significant workforce cuts under the Trump administration.
Michael Fruge, a seasoned farmer and proprietor of Parish Rice in Eunice, expressed surprise over the limited discussion surrounding USAID at agricultural forums. "They talk about Mexico because it changes,” Fruge noted. “They talk about India because they put export bans on long grain rice. But food aid has just been there. It just hasn’t been talked about because it’s just there."
Efforts by President Donald Trump and his ally Elon Musk to overhaul USAID have led to substantial layoffs and program shutdowns. Earlier this month, thousands of USAID employees were laid off, and various international aid initiatives were halted as part of a broader freeze on foreign assistance.
In a recent development, a federal judge granted a restraining order blocking the administration’s plan to reduce USAID’s workforce from 10,000 to fewer than 300 employees. This legal action came after a last-minute lawsuit filed by two unions.
Despite the restraining order, the agency’s international aid programs continue to face uncertainty. These programs provide billions of dollars to U.S. farms, potentially affecting Louisiana’s agricultural sector.
Louisiana’s rice farmers are integral to programs like Food for Peace and McGovern-Dole International Food for Education and Child Nutrition. Rice from Louisiana is distributed globally through ports like Houston and New Orleans to countries including Haiti, Iraq, and Ukraine.
According to Michael Klein of the USA Rice Federation, food aid ranks among the top ten purchasers of rice nationally. In 2024 alone, USAID acquired over $126 million worth of American-grown rice, favored for its high caloric content and long shelf life.
Klein highlighted the significant role of Louisiana in rice exports, with approximately 75% of the state’s rice acreage located in Acadia, Jeff Davis, Vermilion, Evangeline, and St. Landry parishes. However, he emphasized the uncertainty surrounding the impact of USAID’s potential workforce reduction, stating, "The reality is we just don’t even know the full extent of what is happening. It’s concerning, but we just don’t know how it’s going to impact the industry as a whole or Louisiana specifically."
Major rice milling operations in Louisiana, such as Supreme Rice in Crowley and Farmers Rice Milling Company in Lake Charles, have historically benefited from USAID funding. However, David Warrington, CFO of Powell Group (owner of Farmers), clarified that their company currently holds no contracts with the agency.
Both Supreme Rice CEO Bobby Hanks and Farmers Rice Milling Company’s leadership have previously supported food aid initiatives. Hanks referenced former Secretary of Defense James Mattis, stating, "if goodwill programs like these are not fully funded, then I need to buy more ammunition." This sentiment was echoed in a USA Rice press release.
State Representative Troy Romero, a Republican from Jennings and chair of the agricultural committee, is actively working to ensure that Louisiana’s rice industry remains aligned with USAID’s programs. While acknowledging the uncertainty surrounding future funding, Romero remains optimistic that essential food aid initiatives will continue. "When (the Trump administration) looked into USAID, they found that numerous dollars were going to some crazy things that conservatives may have a problem with,” Romero explained. “They’re going to reinstate the stuff that is really important. I cannot imagine that program—as good as it is—would be one of the ones that they would cut out."
Fruge highlighted the export dependency of Louisiana rice, noting that around half of the combined Louisiana and Arkansas rice crop is exported internationally, with an estimated 5% to 10% designated for food aid. He cautioned that disruptions in the market could result in overstock and reduced prices as mills seek new buyers.
The broader agricultural community remains divided on USAID’s role. While Fruge recognized potential inefficiencies within the agency, other rice farmers criticized its programs and supported the administration’s efforts to eliminate wasteful spending and advocate for a new Farm Bill. Reflecting on the administration’s motives, Fruge stated, "If Elon and President Trump are going to fix wasteful spending, how else do you go about it? Are they doing it the right way? I don’t know. But I would like to think they’re doing it the best way they know how."
