Shutdown Puts Farm Bill, USDA Funding in a Time Crunch

Congress has just over a month of working days left for the year. Plan for uneven USDA service until funding is restored, and closely monitor Farm Bill talks, as avoiding Permanent Law before January 1 is the single biggest risk to markets and milk prices.

NASHVILLE, Tenn. (RFD-TV) — With a partial federal shutdown still in effect, Congress has a short runway to protect agriculture before year-end.

According to the latest calendars, the House has 36 working days left in 2025, and the Senate has 39 days — time that must cover reopening the U.S. Department of Agriculture (USDA) and resolving the Farm Bill to prevent a New Year shock to markets and county services.

Lawmakers’ Top To-Do’s for Agriculture:

  • Reopen the USDA: Pass the Ag–FDA spending bill (or a continuing resolution) so that FSA/NRCS field offices can process loans and program sign-ups; meat and poultry inspections remain fully supported; and WIC/SNAP avoids strain from stop-start funding.
  • Farm Bill or extension by Jan. 1: Without action, policy reverts to Permanent Law (1938/1949 parity rules). That would trigger the “dairy cliff”—government purchases that drive milk prices sharply higher—and raise parity supports for crops like corn, wheat, and cotton until a new bill passes.
  • Protect at-risk programs: Crop insurance will continue under permanent authority, and many IRA conservation dollars will remain available through 2031. However, rural development, trade promotion, research, specialty crops, and energy authorities are vulnerable without reauthorization.

On the ground, county USDA services are slow, program deadlines become murky, lenders face planning uncertainty, and markets could see policy-driven volatility if Congress fails to reach a deal by January.

The simplest near-term path is a funding patch to reopen agencies while Farm Bill negotiators hammer out either a full bill or a clean extension.

Farm-Level Takeaway: Plan for uneven USDA service until funding is restored, and closely monitor Farm Bill talks, as avoiding Permanent Law before January 1 is the single biggest risk to markets and milk prices.
Related Stories
Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.
Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.
Without additional support, many soybean operations will continue to face financial stress as they prepare for the 2026 crop.
The National Cattlemen’s Beef Association and Public Lands Council published a joint press release regarding the advancement of legislation to delist the Mexican Gray Wolf from the Endangered Species Act.
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.

LATEST STORIES BY THIS AUTHOR:

Shrinking sheep numbers contrast with gradual goat expansion, signaling tighter lamb supplies but steadier growth potential for meat goats.
Falling livestock prices, combined with higher input costs, continue to squeeze farm profitability heading into 2026.
Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
University of Nebraska President Dr. Jeffrey Gold joined us with important insights on drug safety and rural health during the winter months.
Quinn Rutt of Upstream Ranch previews the Nebraska cattle operation’s 49th Annual Production Sale where buyers can expect standout sire groups and a blend of long-standing ranch practices with modern genetic selection.
Jim Matheson, CEO of the National Rural Electric Cooperative Association, provides new updates on winter storm impacts and the outlook for rural power reliability.