I dont want to go off half cocked and start a rumor but...

I just recieved a call from a contractor friend of mine who is doing the dozer work on my tree planting projects. He said that he recieved a letter today from the USDA stating that he should immeadiately notify his customers that all funding for cost share, establisment, contract payments, etc have been cut due to the war budget.
This would apparently affect CRP, windbreaks, watershed projects, buffer programs, etc.
It was not clear whether this would affect old contracts or not but would effect any project not yet completed.

If I understand this correctly then, (to use my situation as an example) the USDA is not going to honor the contracts which I have signed with the NRCS this spring, and I will not recieve any of the promised cost share money or acreage rental payments. This would leave me holding the bag on about $2,500 worth of work.

I could not find any info on this on the USDA website, does anybody know anything about this?

Again, I dont want to start a false rumor but this friend is quite reliable and I cant find out anything more untill Monday when the local NRCS office opens.

Thanks....Timber