Agriculture Industry Works to Recover after Federal Government Shutdown

It took 43 days, the House of Representatives largely avoiding Washington, D.C. for nearly two months, and countless arguments and finger pointing, but the partial federal government shutdown ended on November 12th, and America’s agricultural producers, growers, ranchers, workers, agribusiness owners, and investors can now try to recover from the damage and stalled progress that Congress’ funding fight caused.

Democrats, at least enough of them, finally acquiesced to the Republican budget priorities and agreed to fund the federal government through January.  

The shutdown which began when the new federal fiscal year started on October 1^st, significantly hampered USDA funding, programs, and employees. The full reopening of the government means that USDA can be restored.

During the shutdown, President Trump threatened to fire additional federal workers and not give all federal employees their full back pay. The compromise deal reached by U.S. Senate Republicans and Democrats ensures that workers during the shutdown were able to keep their jobs and that they would receive their pay.

American Farmland Owner is not aware of any further staffing reductions at USDA.

USDA Program and Office Recovery after Government Shutdown

Many USDA programs and county-level offices either closed or operated at reduced capacity during the shutdown. That meant farm services like loans, commodity programs, and conservation assistance were not fully available for farmers who had depended on them.

The Iowa State University Center for Agricultural Law and Taxation tracked USDA programs that had been impacted by the shutdown.

The “Lapse of Funding Plan” announced by the USDA meant that two-thirds of Farm Service Agency employees were furloughed, which included most of county office staff.

Those local workers typically serve as the direct connection for family farmers and operators. Those furloughed workers were not available for customer calls, emails, or in-person visits.

Offices should now be available for communication.  

FSA Direct and Guaranteed Loan Programs 

The shutdown disrupted the FSA direct and guaranteed loan programs. Farmers rely on those for land purchases, operating funds, and livestock and equipment acquisitions. That meant farmers likely could not access loans and finish loan processing.

Even though the political disagreements in Washington, D.C. limited these crucial services for farmers, they did not absolve farmers of their obligation to make loan payments during the shutdown.

Farmers should now contact their local FSA office to find out their status. However, backlogs will likely exist because of the shutdown once services resume.

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CCC Loans

The USDA had suspended Community Credit Loans during the shutdown. That prevented farmers from using their harvested crops as collateral until they sold their corn and beans, for example.

 On October 23, the USDA re-opened the application process for CCC loans and marketing assistance. While the process will be slower than it should be, it should be slightly more streamlined than if the USDA would have continued the full pause until the government reopened.

Farmers should contact their FSA office to get an update on the process.

Other USDA Programs That Are Delayed Because of the Shutdown

Farmers can expect delayed payments for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. They should have been paid in October but were not because of the shutdown.

Disaster assistance programs and payments through the Livestock Forage Disaster Program (LFP), Emergency Conservation Program (ECP), and the Emergency Forest Restoration Program (EFRP) also faced delays due to the shutdown. 

Conservation Reserve Program (CRP) annual contract payments also faced delays, along with new CRP contracts.

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