The Trump administration illegally shuttered the U.S. Agency for International Development this month. The decision not only resulted in the loss of jobs for longstanding USAID workers and cutoff of funding for development, democracy and humanitarian projects abroad, but also caused Illinois farmers and businesses to lose vital income at best and, at worst, shut down completely.
USAID spends over $2 billion annually on U.S. farm products for humanitarian food assistance in developing countries. Dairy, wheat, corn, soybeans and sorghum are some of the main food products that USAID buys from U.S. farmers to deliver to countries undergoing famines, droughts, flooding and conflict-induced food insecurity.
This food aid not only saves lives in poor countries but also serves an important economic function in the U.S.: If farmers overproduce food, USAID provides an avenue through which the government can buy this excess product at cost, preventing crops from rotting or being sold off at a loss.
The USAID “off valve” for agricultural production serves as additional insurance for farmers and promotes stable production in the long-term, which in turn alleviates food insecurity in the U.S. by protecting farmers’ capacity to grow food for domestic markets.
USAID also contracts with local businesses in Illinois, including manufacturing plants for medical supplies, agricultural-equipment manufacturing to support agribusiness and supply-chain logistics management to ensure safe delivery of U.S. materials and personnel in developing countries.
Last year, USAID contracts to Illinois totaled $1.24 billion. Below is a list of the top 10 Illinois-based contractors in 2024.
1. Archer-Daniels-Midland Company, Decatur: $201 million.
2. Cherry Meat Packers Inc., Chicago: $168 million.
3. CDW Government, Vernon Hills: $151 million.
4. Mistica Foods LLC, Addison: $113 million.
5. Incobrasa Industries Ltd., Iroquois County: $82 million.
6. National Opinion Research Center, Chicago: $67 million.
7. John Hofmeister & Son Inc., Chicago: $57 million.
8. Saputo Cheese USA Inc., Lincolnshire: $37 million.
9. McCain Foods USA Inc., Oakbrook Terrace: $35 million.
10. U.S. Foods Inc., Rosemont: $26 million.
The direct purchase of goods from Illinois supports our local economy and promotes Illinois products across the world. USAID also sponsors research at state and private universities across Illinois.
The Soybean Innovation Lab at the University of Illinois conducted research on soybean-growing techniques in Africa. The research aided small-scale farmers while also expanding demand for soybean products across the African continent — demand that Illinois farmers intended to meet.
Techniques developed by the lab in the African context could also be imported to domestic U.S. producers as they face new growing challenges due to changes in weather patterns and soil quality.
With the end of USAID funding, the Soybean Innovation Lab will shut down April 15. All 30 Illinois-based staff members will be let go due to the funding loss. This pattern is repeating across the country, with agriculture innovation labs in Kansas, Louisiana, Michigan, Missouri, Nebraska and Tennessee losing funding without notice this month.
The domestic consequences of the USAID shutdown will hurt the entire country directly: Jobs, business contracts and innovation are already being lost as a result of these funding cuts. Illinois will be dramatically impacted due to its large agricultural sector and leading role in agricultural innovation.
Today, we mourn these losses.
Cleo O’Brien-Udry is an assistant professor of political science at the University of Illinois.
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