Producers won’t have access to services, and reports could be delayed
The U.S. government shut down at midnight Wednesday.
The shutdown occurred after Senate Democrats voted 55-45 against a Republican bill they felt didn’t adequately address health care demands.
“We depend on the passage of annual appropriations bills that essentially set the budget for the government,” Dr. Amy Hagerman, an associate professor of ag economics at Oklahoma State University, told Farms.com. “In a time period where these appropriations bills expire and we don’t have one, the government technically doesn’t have budget to operate, and federal workers will be legally required to not report to work.”
So, what does the shutdown mean for producers?
One item to clarify is the services they need, like those under USDA’s jurisdiction, are technically available.
This came through a piece of legislation passed earlier in the year, Hagerman said.
Amy Hagerman (OK State University photo)
“The One Big Beautiful Bill Act included authorizations and appropriations for farm programs that would’ve normally expired on September 30th and extended those until 2031. This means funds are available for those programs to continue,” she said.”
The shutdown means there’s a lack of personnel.
The USDA’s funding lapse contingency plan estimates more than 42,000 people will be furloughed.
“Offices are temporarily shut down,” Hagerman said. “It’s not just the doors are closed, but the workers can’t check emails or process paperwork. They cannot work.”
Some employees, however, are considered essential and will continue to work while Congress tries to pass the necessary legislation.
These include inspectors at ports and processing facilities, Hagerman said.
“These folks will have delayed paychecks, so I think it’s important we also recognize the federal workers who will be working while the shutdown continues.”
In addition to the farmer-facing services affected by the shutdown, report generation is impacted too.
Crop reports, the WASDE, and other pieces of information could be delayed the longer the shutdown goes.
Senators continue to work towards passing a bill to fund the government.
Sources like CNBC, FOX, and ABC News have updates about the ongoing shutdown.