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
Farm bill negotiations remain unsettled, leaving producers waiting for updated federal support programs.
Purdue University’s Dr. Michael Langemeier discusses the survey’s findings in February and broader signals in the months ahead.
Texas lawmakers secure funding for sterile fly production as officials work to stop the New World screwworm from spreading into the U.S. cattle herd.
Pennsylvania Secretary of Agriculture Russell Redding discusses the recent surge in bird flu cases, the state’s expanded biosecurity response and efforts to support poultry producers.
The San Antonio Stock Show and Rodeo concluded last night, marking the end of another successful year showcasing youth exhibitors, livestock producers, and the spirit of agriculture.
Kurt Kovarik of Clean Fuels Alliance America joined us to break down the latest developments in the Renewable Fuel Standard rulemaking process and what it could mean for agriculture, energy markets, and rural economies.

LATEST STORIES BY THIS AUTHOR:

Ranchers have a lot going on at the moment, but some ‘friendly’ news could be coming with this month’s Cattle-on-Feed Report from the USDA.
Energy risks could reshape global ag trade flows.
The ag trade deficit is narrowing, but export competition remains strong.
E15 policy could shape future corn demand outlook.
Agricultural groups warn that the deal could limit competition and raise transportation costs for farmers
The Trump Administration’s new rule limiting CDL renewals for immigrant truckers is seeing mixed reactions in agriculture. While some support the change, it is raising concerns about higher freight costs and impacts on U.S. grain export competitiveness.