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- DTN Headline News
USDA Funds for Rio Grande Farmers
By Chris Clayton
Thursday, March 20, 2025 9:19AM CDT

OMAHA (DTN) -- USDA will provide Texas farmers $280 million for water delivery shortages along the Rio Grande River Valley due to Mexico's failure to meet its obligations under a 1944 treaty.

Agriculture Secretary Brooke Rollins announced the grants Wednesday during a visit to McAllen, Texas. The funding will be provided to the Texas Department of Agriculture, which will distribute grants to producers for lost water deliveries in 2023 and 2024.

"Farmers and ranchers in the Rio Grande Valley have worked for generations to feed communities across Texas, the U.S., and beyond," Rollins said. "A lack of water has already ended sugarcane production in the Valley and is putting the future of citrus, cotton, and other crops at risk. Through this grant, USDA is expediting much-needed economic relief while we continue working with federal, state, and local leadership to push for long-term solutions that protect Texas producers."

Sid Miller, the Texas Agriculture commissioner, said, "I'm proud to partner with the Trump administration and USDA to get this critical funding out the door and into the hands of our South Texas farmers and ranchers."

He added, "The rollout of the 1944 Water Treaty Grant Agreement is exactly the kind of action we need to help our agriculture producers in the valley weather this prolonged drought."

Though not mentioned in the news releases, the $280 million comes from the American Relief Act passed by Congress in December and signed by former President Joe Biden. The law included language in a disaster provision to offset losses suffered under Mexico's failure to deliver water under the 1944 Water Treaty. The provision in the bill was included by Sens. John Cornyn and Ted Cruz, along with Rep. Monica De La Cruz, R-Texas.

WHAT THE TREATY REQUIRES

The 1944 Water Treaty requires Mexico to deliver 350,000 acre-feet of water from the Rio Grande and tributaries, or a five-year total of 1.75 million acre-feet. The U.S., in return, provides 1.5 million acre-feet of water to Mexico from the Colorado River. During the past five years, Mexico has fallen 1 million acre-feet behind in its water deliveries. Texas farmers have criticized Mexican officials for holding back water in reservoirs to irrigate their own crops. Meanwhile, Texas farmers have missed out on seasonal rainfalls.

"It's almost mathematically impossible for them to meet their obligations on this cycle," said Brian Jones, a member of the Texas Farm Bureau who testified last week before the state Senate Committee on Water, Agriculture and Rural Affairs.

Jones told state lawmakers the state of Texas needs to be more engaged in pressing Mexico to meet its treaty obligations.

ECONOMIC LOSSES FROM LACK OF IRRIGATION

A study by Texas A&M University last August cited a complete lack of irrigation water in the Lower Rio Grande Valley in 2024 would result in just under $500 million in direct revenue loss. Total economic losses would top $990 million.

Row crops affected are mainly corn, cotton and sorghum, but also fruit and vegetable producers and sugarcane, Texas A&M noted. The lack of water also forced the last sugar mill in Texas to close.

To address the water shortage, Texas and Mexico also struck a new agreement on water that will require Mexico to give up some of the water allotted to the country while also transferring water stored in reservoirs. The new agreement also highlights more conservation of water.

"Water is the lifeblood of Texas agriculture, and nowhere is that more critical than in the Rio Grande Valley. The rollout of the 1944 Water Treaty Grant Agreement is exactly the action we need to help our agriculture producers in the valley weather this prolonged drought," said Miller.

See, "USDA Details $10 Billion Economic Aid Payments for Commodity Producers," https://www.dtnpf.com/…

Also see, "How Does Cutting Local Food Programs Help Make America Healthy Again?" https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN


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