New Mexico Department of Agriculture (NMDA) officials told lawmakers a recent federal budget reconciliation package and new U.S. Department of Agriculture (USDA) reorganization plans will change how federal agricultural grants and technical assistance are delivered to producers in the state.

Deputy Director Les Owen said several federal programs that had targeted climate-smart agriculture or soil-health research were rescinded or "clawed back" from earlier commitments, which redirected some funds into broader conservation base funding but eliminated other planned targeted grants. "Some research that was going to happen in the soil health realm with NMSU...got clawed back," Owen said, and she named specific subawardees who lost grant funding.

Owen also told the committee that NMDA's pesticide compliance grant from the Environmental Protection Agency will be reduced about 20 percent and that an FDA cooperative agreement for produce safety will drop roughly 39 percent; NMDA said core inspection and compliance work will continue but outreach and education capacity will be reduced. At the same time, some federal conservation programs (EQIP, CSP and others) saw baseline increases, and specialty-crop block grants and trade-promotion funds were increased nationally, although state-level allocations were not yet finalized.

USDA reorganization and capacity questions: Owen described a USDA plan to relocate many Washington-area staff into five regional hubs and consolidate support functions. The agency proposes five regional hubs (Fort Collins, Salt Lake, Kansas City, Indianapolis and Raleigh) but said existing service centers in Albuquerque and other places would be retained. "This plan has created more questions than answers," Owen said, noting uncertainty about which research centers and technical-support functions would be preserved in New Mexico.

Why it matters: NMDA officials said the combined effect of rescinded targeted climate grants, reduced cooperative-agreement funding for produce safety, and uncertainty about USDA field capacity could reduce outreach and research that producers rely on for soil health, irrigation and climate-adaptation practices.

Ending: Owen said NMDA will monitor funding allocations and work with federal partners and NMSU to preserve field services but cautioned that the reorganization raises questions about delivery timelines and local technical support for producers.