Shagbark says it is feeling the effects of federal cuts

By: Charlie Ihlenfeld
Posted on: Monday, July 28, 2025

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ATHENS, Ohio (WOUB) – After cuts to a federal program used to buy food from local growers and producers, Shagbark Seed and Mill, an Athens organic food business, will lose about $500,000 this year.

“We were selling to all 12 food banks in the state of Ohio,” said Michelle Ajamian, founding partner of Shagbark. “The primary product we sent were 1-pound bags of dry black beans, and we sold 300,000 of those bags a year for two years. And now, it’s over.”

The Local Food Purchase Cooperative Agreement Program, or LFPA, was a $1 billion program that allowed schools, food banks and other food providers to purchase regionally or locally produced food at a reduced rate. The program was cut in March and ended in June. The move was devastating for businesses like Shagbark and farmers who had already planned their crops for the year.

“You don’t tell farmers in March that they’re not going to sell the crop they already planned their fields for,” said Ajamian. “The program ended in June. They gave two months’ notice.”

LFPA cuts come as more Americans are relying on food banks and other organizations to help them battle food inflation. Ajamian called the program a “quadruple win,” as it benefited everyone involved.

“It’s helping farmers, it’s helping businesses, it’s helping the local economy and helping people who need food,” she said.

Ajamian has already been forced to make changes to her staff as a result of the federal cuts. They laid off a part-time facility worker and reduced the hours of two others from 40 to 32.

“And we might have to do more cuts,” said Ajamian. “We’re not going to be able to replace getting two months’ notice that you are losing a sale of that magnitude.”

Ajamian worries about the future of farming in the region. According to Farm Aid, tens of thousands of farmers have been affected by frozen federal farm aid. The LFPA is far from the only agricultural program cut under the current administration. This list includes Local Food for Schools and Child Care Cooperative Agreement (LFSCC), the Patrick Leahy Farm to School Program and frozen funding previously given to farmers under the Inflation Reduction Act.

“Now, how can you tell someone to farm?” When we don’t know what real support there is,” said Ajamian.