Policy Updates: Congress returns to Washington amid shutdown risk and shaky farm economy

Lawmakers, facing a looming government shutdown, are running short on time to pass a Farm Bill before the end of the year.

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Pro Farmer Policy News Markets Update
(Lindsey Pound)
  • Clock ticking on “Skinny” Farm Bill as lawmakers return to D.C. (Politico): Congress is running short on time to pass even a slimmed-down version of the farm bill before year’s end. Farm groups are pushing hard, but many in Washington doubt lawmakers can finish the job this year. The main holdup is a split between Republicans and Democrats over the bill’s nutrition programs, with Democrats warning they won’t support cuts.

    House Ag Chair G.T. Thompson (R-Pa.) wants to move a draft out of committee this month, but staff are still “a little behind” in writing it. Meanwhile, farmers are staring at record-high corn and other crop yields this fall. While that shows resilience, it also means more supply could pressure prices—making farm policy support even more urgent.

    Beyond the nutrition fight, lawmakers still need a budget score from the Congressional Budget Office and must wrestle with thorny issues like California’s Prop 12 animal welfare law, hemp regulations, and pesticide rules. For now, the outlook remains uncertain, and many expect the farm bill battle to drag into next year.

  • Shutdown risk and farm policy at stake with Congress back from summer recess (Agri-Pulse): Congress is back from summer recess with two big issues on the table: avoiding a government shutdown and grappling with a shaky farm economy. The new budget year begins Oct. 1, but lawmakers remain far apart on spending bills for 2026, making a short-term funding measure likely.

    The White House has added fuel to the fight by proposing to cancel $5 billion in foreign aid, including the U.S. contribution to the World Trade Organization (WTO). The administration called the WTO “toothless” and accused it of enabling unfair Chinese trade practices. The U.S. hasn’t paid its WTO dues for 2024 or 2025, and officials say it’s now one of two dozen members behind on payments.

    Meanwhile, the U.S. Trade Representative is holding a hearing this week on whether to retaliate against Brazil for ethanol tariffs and land-use practices tied to deforestation.

  • USDA quietly extends public comment period on reorganization plan (Politico): The Agriculture Department has pushed back the deadline for public feedback on its reorganization plan, moving it from August 31 to September 30. The change effectively doubles the comment period first announced on July 24. USDA officials said the extension is meant to ensure that all stakeholders have enough opportunity to provide input, noting that this was the department’s original intention.