Federal government shutdown freezes farmer payments and furloughs 42,000 USDA staff (Progressive Farmer ): The federal government shutdown has immediately hit farm operations by halting key USDA payments and services across the country. According to the USDA’s “Lapse of Funding Plan,” all scheduled payments under major programs like ARC/PLC, the Conservation Reserve Program (CRP), ECAP, and Supplemental Disaster Assistance are frozen. This means any final ECAP payments expected this week may be delayed. Crucially, all Farm Service Agency (FSA) loan activities have stopped. If you had a loan closing scheduled, or were in the process of applying for a new operating loan, that activity is now completely on hold. Furthermore, almost all technical assistance from the Natural Resources Conservation Service (NRCS) has ceased, leaving fewer than 500 staff on duty.
The shutdown also means a complete suspension of vital agricultural reporting. The National Agricultural Statistics Service (NASS) has stopped releasing all reports, including the one set for later today, and the critical October Crop Production report is delayed. Similarly, the World Agricultural Supply and Demand Estimates (WASDE) report, scheduled for next week, will likely be postponed. This loss of current data creates additional uncertainty as farmers make crucial marketing and planting decisions. Over 42,000 USDA employees are now furloughed, including thousands of FSA staff in county offices, meaning non-essential assistance and paperwork processing have stopped.
Despite these disruptions, some essential services will continue. Food Safety and Inspection Service (FSIS) inspectors will remain on the job to ensure the safety of meat, poultry, and egg products. Additionally, core nutrition programs like SNAP and WIC are expected to continue operating, and APHIS staff will remain on duty for border inspections and urgent animal disease management. The political blame for the shutdown is being cast on both sides in Washington, but the immediate reality is a freeze on farmer payments, loans, and access to essential government support and data.
Policy Updates: Federal government shutdown freezes farmer payments and furloughs 42,000 USDA staff
For the first time since 2019, the federal government has shutdown, immediately hitting farm operations by halting key USDA payments and services across the country.
(Lindsey Pound)