Government Shutdown, Farm Bill Expiration Create Uncertainty Across Farm Sector

Farmers are in the midst of harvest as the government descends into a shutdown and the Farm Bill expires. Key federal departments, crop reporting, and aid programs important to the agricultural sector are now on hold.

WASHINGTON (RFD-TV) — The ongoing government shutdown has significantly impacted the USDA’s workforce. While many crucial functions will continue, some will not, with reports like next week’s WASDE Report for September now on hold.

Senate Agriculture Committee member Sen. Chuck Grassley (R-IA) told reporters this week that he’s concerned it could disrupt ongoing talks with China.

“That’d be very detrimental and immediate,” Sen. Grassley said. “What might not be immediately apparent is the low prices that farmers are receiving and the safety net kicking in. Remember, farmers won’t get that money until after some time, well into next year. And obviously, the government better be up and running by then or we have a real catastrophe.”

In an interview with RFD-TV News this week, Sen. Jerry Moran (R-XX) described the shutdown as “unnecessary” and urged his colleagues to return to work, emphasizing the need to deliver for farmers and ranchers.

The USDA’s “Lapse of Funding Plan” shows that 42,000 of its employees are now on leave. That’s about half of the department’s entire workforce. The Farm Service Agency and NRCS are taking the most significant hits. Approximately 6,000 of the 9,000 FSA workers are furloughed, while around 95 percent of the NRCS workforce faces a similar fate. There is a significantly less impact on the Food and Drug Administration, with only a fraction of the agency’s 7,000 workers on leave.

Other lawmakers are speaking out about the current state of the agriculture industry. Rep. Dan Newhouse (R-WA), a farmer himself, says he knows firsthand how challenging things are right now.

“I’m a farmer too, as you know, and we’re facing the same things at home on my farm, with my son and his wife trying to keep things together, and it’s very difficult,” Newhouse said. “The high cost of literally everything and the prices we’re receiving for the products we produce are just not keeping up.”

Newhouse hails from Washington State, an agricultural region that relies heavily on exports. He hopes his colleagues in Washington will quickly realize the direness of the current situation.

“I carry that with me back here to Washington, DC, to make sure my colleagues understand the dire nature that agriculture is facing, the situation they’re facing right now,” Newhouse said. “And the things that we do here absolutely have an impact on producers, not just in central Washington, but around the country, and we have to be very careful about what we do here and avoid negative impacts.”

Newhouse has been pushing for a new Farm Bill for some time now. But with a shutdown, it is unlikely that legislation will see any action for some time. However, the majority of the Farm Bill’s provisions were implemented through the president’s “One Big Beautiful Bill” Act.

Farm Bill Expiration Creates Uncertainty For Rural Programs

The 2018 Farm Bill officially expired on September 30, 2025, leaving farmers, counties, and rural residents facing uncertainty as Congress works on a replacement.

According to Owen Hart with the National Association of Counties, while core programs like crop insurance and Inflation Reduction Act conservation funds will continue, many smaller initiatives and rural development authorities have lost their legal footing. Counties rely on Farm Bill programs to support broadband, water infrastructure, and food assistance, making the lapse a serious concern.

The Institute for Agriculture and Trade Policy warns that without reauthorization, dozens of programs serving farmers and communities are in jeopardy—from the Conservation Reserve Program to rural cooperative development grants.

If Congress fails to act by January 1, 2026, the nation reverts to a permanent law from the 1930s, requiring the USDA to purchase commodities like dairy at outdated, high prices. This would drive up milk costs for consumers and county institutions alike. Lawmakers are considering a “skinny Farm Bill” to address gaps, but without new legislation, local USDA offices and essential nutrition programs could face disruptions as early as the new year.

Farm-Level Takeaway: The Farm Bill lapse puts smaller farm and rural programs at risk, while crop insurance and significant conservation funding continue. Producers and counties need swift action to avoid broader fallout.

Related Stories
The Final Grain Stocks Report may be the last key figures we see if a government shutdown halts future updates.
USDA and EPA officials aim to maintain America’s robust food supply while ensuring farmers have access to key resources and crop protection tools.
The campaign is about more than just a digital push; NPB leaders hope it will become a rallying point for the entire industry.
The Senate failed to pass a continuing resolution that had been approved by the House the previous week. They could take it up again today, but it would take seven democrats to end the stalemate.
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
The USDA is working with 14 different states, including Georgia, to develop and implement block grants to address the unique disaster recovery needs for each state.

LATEST STORIES BY THIS AUTHOR:

Late harvest and tight supplies shape crop progress and agribusiness this week. Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Dec. 1, 2025.
Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
Tryston Beyrer, Crop Nutrition Lead at The Mosaic Company, examines planning trends as producers weigh corn and soybean plantings for 2026.
Brooks York with AgriSompo joins us to offer an update on what agents are prioritizing as the calendar year winds down.
The newly elected Executive Vice President of the Tennessee Cattlemen’s Association (TCA), Dale Parker, joins us on-set to share his vision for his state’s cattle industry.
A leading Oklahoma veterinarian explains common symptoms of Equine Herpes Virus (EHV) and warns owners to remain vigilant because it can spread quickly among horses.