New York farms face growing financial pressure as federal policy changes ripple through agriculture, according to a new report from State Comptroller Thomas P. DiNapoli. The analysis warns that cuts to food programs, tighter immigration enforcement, and trade tariffs could undermine farm profitability and local food supplies.
Farming remains a major economic driver across the state. In 2022, New York’s 30,650 farms contributed close to $3 billion to state GDP and supported more than 163,000 jobs tied to agriculture. Many farms, however, operate on thin margins and rely on stable federal support.
Federal aid reaches relatively few farms
The report shows that federal payments reach a limited share of New York farms. In 2022, about 3,275 farms received $66.3 million in direct federal payments, excluding crop insurance. That equals just over one in 10 farms and less than 3 percent of total farm income statewide.
Most farms receiving aid reported low sales. Nearly 70 percent had receipts below $10,000, while only 8 percent had receipts of $50,000 or more. Larger farms received much higher average payments, widening the gap between operations.
Local food funding cuts hit New York
The report highlights recent federal actions that reduced support for local food systems. The elimination of programs that helped states buy locally produced food for food banks and schools resulted in an estimated $93 million loss for New York.
Farmers who planted crops or invested in equipment to meet food bank demand may now need to find new buyers. The loss also weakens local supply chains built during the pandemic.
Tariffs raise costs and shrink markets
Tariffs continue to squeeze farmers from both sides. The report notes that in 2022, nearly 60 percent of New York producers reported net operating losses. At the same time, tariffs raised costs for fertilizer, equipment, and other inputs.
Exports also suffered. New York dairy exports dropped by as much as 12 percent in the first half of 2025 compared to the same period a year earlier.
Labor shortages deepen uncertainty
Immigration policy adds another layer of risk. The state’s farms employ an estimated 40,000 to 80,000 workers each year, many of them immigrants. The report says increased enforcement and limits on work visas threaten the labor supply, especially for dairy farms that need year-round workers.
Federal officials have warned that labor shortages could disrupt food production and raise prices for consumers.
Uncertainty clouds farm decisions
Taken together, the report concludes that shifting federal support, trade disruptions, and labor uncertainty may discourage farmers from investing or expanding. That hesitation could affect food availability, prices, and rural economies across New York.
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