THOUSANDS of jobs and millions of dollars have been cut from US agriculture programs due to the nation's crippling debt woes.

US Agriculture Secretary Tom Vilsack announced the cuts at the American Farm Bureau Federation's annual meeting last week.

Under the plan, aimed at streamlining operations at the US Department of Agriculture, 259 offices and laboratories will be closed or consolidated.

"The USDA, like families and businesses across the country, cannot continue to operate like we did 50 years ago," Mr Vilsack said.

"We must innovate, modernise, and be better stewards of the taxpayers' dollars."

The cuts are expected to save US President Barack Obama's government $150 million annually.

Since 2010, the USDA has cut 7000 jobs, mainly through early retirements.

University of Adelaide economics professor Kym Anderson warned there could be more to come.

"(Given generous subsidies) farmers in the US have never been better off, so there couldn't be a better time to introduce cuts," Prof Anderson said.

"These cuts really are minor in the scheme of things. A lot of the offices that will close are already redundant and, in some cases, these services will just be replaced with private sector services."

Prof Anderson said it was time for the European Union to follow, with further cuts to its generous farmer subsidies.

National Farmers' Federation economist Charlie McElhone backed the call for further cuts to international agricultural subsidy programs.

"This announcement really is a drop in the ocean in terms of savings, but at the same time it is still a positive sign from a key player in food security and in the international community," Mr McElhone said.

"The US is the largest exporter and second-largest importer (of agricultural commodities) and any financial reform will send a positive message to the global agricultural community."

Despite welcoming the cutbacks, Mr McElhone said any financial attack on the administrative side of the USDA would fail to make a huge impact where it was needed.