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
Despite rising costs and growing food insecurity, meat demand remained strong in 2025 as higher-income consumers offset cutbacks elsewhere. Economists break down the K-shaped economy, upcoming USDA cattle reports, livestock production outlooks, and renewed debate over beef imports and country-of-origin labeling heading into 2026.
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
From rising trade tensions in Europe to a pending Supreme Court decision on tariffs and shifting demand from China, global trade policy spearheaded by President Donald Trump continues to shape the outlook for U.S. agriculture—adding uncertainty as farmers navigate another volatile year.
The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.
Congressional leaders signal momentum toward expanded, targeted farm aid to help producers manage losses and cash-flow stress in 2026.
New Resource Makes It Easier for People to Access Data on Rural Development funded Projects in Rural Communities
In a landmark ruling delivered in late 2025, the U.S. Supreme Court significantly narrowed the scope of the National Environmental Policy Act.
Trade volatility and shifting export destinations increase marketing risk for producers heading into 2026.
RFD NEWS Correspondent Frank McCaffrey speaks with Texas’s Sen. Ted Cruz and Rep. Vicente Gonzalez about USMCA renegotiation and its impact on U.S.–Mexico agriculture trade.