Government Shutdown Ends — USDA Funding and Farm Bill Extension Farmers Need to Know

The longest government shutdown in American history is over. President Donald Trump has signed into law legislation that will fully fund USDA and the FDA through the rest of the new fiscal year. Agri-Pulse Newsmakers asked Tennessee Rep. John Rose about why the new continuing resolution is important for agriculture. He also shared his thoughts on what’s at stake for agriculture in a ruling from the Supreme Court over whether the president properly used a 1977 law to impose tariffs on countries across the globe.

Then, Tom Sell with Combest, Sell & Associates and Anne MacMillan with Invariant discussed when they think the remaining parts of the farm bill will pass and the measure will look like. They also talked about whether it will be harder to get other countries to lower barriers on American ag exports if the Supreme Court rules against the president.

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Please note: This transcript has not been edited.

Andrew Huneke: Welcome to Agri-Pulse Newsmakers, where we aim to take you to the heart of ag policy. I’m your host, Andrew Huneke. Our guest this week is Congressman John Rose, who joins us to discuss how Ag has been impacted by the end of the government shutdown, as well as the latest on trade and tariffs.

But first, here, this week’s headlines:

• China will reinstate export licenses for three U.S. soybean exporters and lift the ban on U.S. timber. The restrictions were put in place during the height of the tariff war between the two countries. The announcement comes after the recent meeting between Presidents Trump and Xi. Since then, the U.S. has cut tariffs on Chinese products by 10%, and China has signaled it would lower tariffs on American goods and lift several targeted retaliatory tariffs on American ag products. China committed to buying 25 million tons of soybeans annually for the next three years. If that happens, future purchases will remain at minimum near recent annual volumes.
• Cattle prices have remained volatile due to lingering uncertainty about the Trump administration’s beef sector plans, as well as prospects for reopening the border to Mexican cattle. Cattle futures prices fell after the president suggested importing more Argentine beef into the U.S. and expressed his dissatisfaction with high beef prices. However, prices did rebound earlier this week. Economists say retail beef prices aren’t likely to decrease any time soon due to low inventory and high demand. The president also ordered a new investigation into major American meatpackers, citing his frustration with cattle prices falling even as beef prices have not.
• And finally, the government is back open after being partially shut down since Oct. 1. President Trump has signed into law legislation that will fully fund the Agriculture Department and Food and Drug Administration through the rest of the new fiscal year. Most other departments and agencies will be funded through Jan. 30. The bill also adds a one-year extension for farm bill programs that expire this fall, and the legislation restores USDA’s Commodity Credit Corporation Spending Authority. That’s important because USDA uses the account to provide payments to farmers and cover other needs. The Senate Republican leadership promised to hold a vote next month on expiring Affordable Care Act subsidies as part of the deal. However, House speaker Mike Johnson has not guaranteed he would hold a similar vote.

Congressman John Rose is a member of the House Ag Committee. We asked him why the new continuing resolution is so important for agriculture.

John Rose: So important because of course, we always are worried as the farm bill expires and we have the potential of reverting to permanent legislation. So I think extending the balance of the farm bill for the full fiscal year is important. We hope, of course, that we’re going to get back to that here. Yet this year, even, and pass the remaining provisions of the farm bill. But obviously, the big deal here was reopening government and getting things back on track. Lots of ways that that touches American agriculture during this period. And so happy to, to get that behind us and get government back open and operating.

Andrew Huneke: Yeah. I’d like to pivot off the farm bill. You know, right now, Congressman Thompson calling it the skinny farm bill. That’s kind of what he’s phrased it. When do you think that bill will be passed? And what is your message to farmers who may be waiting for that bill, who’ve been seeing this partisanship on Congress here for quite a while?

John Rose: Sure. So hopefully this year, I think that’s the hope of Chairman Thompson. It’s about whether we can get on the House calendar, and what the Senate would do. But, you know, now, I mean, you know, the reality is probably because we’ve gotten a full year extension that, you know, there probably will be some impetus to push that over into the new calendar year. But it would be, you know, better if we could do it yet this year.

Andrew Huneke: I’d like to pivot back, the government shutdown, again. While this is all it’s over, it’s in the past. Now, this CR the past only funds the government through January 30th. Should farmers and rural America, Americans be concerned that this could happen again January 30th?

John Rose: Well, there is some, some risk of that. Hopefully the Democrats, having gone through six weeks of pure folly here and achieving nothing, will be reticent to take us down this path again. I think it depends on how ultimately the American people assess this and whether Democrats believe that they’re being held accountable for the for their decision to, you know, Leader Schumer’s decision to shut down the government. And I think the American people are sick of that. And I think they’ll hold Democrats accountable.

Andrew Huneke: As part of the deal to end the shutdown, Senate Republicans agreed to hold a vote on continuing expired subsidies for Affordable Care Act policies. A lot of farmers apparently have to buy insurance from the independent market. We asked Congressman John Rose how House Republicans plan to address the issue.

John Rose: Well, so you’re referring to the premium tax credits, a Biden era Covid, short term solution that really was addressing the runaway insurance premiums that have been precipitated by Obamacare, the Affordable Care Act. And they were put in as a temporary thing. The Democrats set the expiration date for December 31st of this year. And it’s really a subsidy to multibillion dollar insurance companies and not to the American people. And it affects a significant but relatively small percentage of Americans. So and we know from digging into this program and how these subsidies work that there’s a great deal of waste, fraud and abuse in these. And so there was an active negotiation underway back in September, with Democrats. And you know, among House members and on the Senate side as well, about how to fix this, whether there was a solution that made sense and that would get the reforms necessary to make this program, actually deliver assistance to, you know, Americans as opposed to big multi-billion dollar insurance companies. So I think we’ll pick back up with that discussion. The deal does include a promise of a vote in the Senate. It doesn’t include a promise of a vote in the House. And so I think there you know, this will continue as a negotiation, just as it was back on September 19th.

Andrew Huneke: I’d like to pivot to trade — Supreme Court, considering a challenge to President Trump’s use of the International Emergency Economic Powers Act to impose tariffs. Right now, the justices seem a little skeptical about the president’s use of that law. What’s at stake here for agriculture?

John Rose: Well, I think I think, access to markets for American farmers is really what this is all about. The president has been using these tariffs to try to, pry open, you know, foreign markets, countries, friends and foes alike who, frankly, have not treated American agriculture well and American farmers have been the victims of that. And so, the president, of course, gets to serve for four years. We’re well into year one. And he has been working, really, I think, at an amazing speed to try to use the powers that he has. I hope that the court sees fit to leave the president with the power to use these tools to open markets for U.S. farmers. We know American farmers can succeed if they have access to markets. And so that’s what this is all about.

Andrew Huneke: China recently committed to purchasing 25 million tons of soybeans. Another major story that’s happened here recently for the next three years. But that deal has kind of kept purchasing levels flat with years of the past. While this is a step in the right direction, what needs to happen to prevent these problems from happening again?

John Rose: Well, again, I think the president is trying to use the powers that he has, to open those markets. And, you know, conversely, the Chinese have been using American farmers as a pawn in these international, negotiations. And so, you know, they had deferred their purchase of American soybeans and grains, really to gain leverage in this. And now they’ve reverted to buying what they’ve historically bought, which is welcome news for the U.S. soybean market in particular. And we’ve seen prices move as a result of that. I think long term, you know, you would hope that we can use the leverage that we have with the Chinese, to keep these markets open.

Andrew Huneke: I’d like to wrap with the question about H-2A. We continue to hear concerns from farmers about a shortage of workers. Is there any chance that Congress can agree to fix farmers concerns about the H-2A program? And is it limited to just seasonal labor?

John Rose: Well, I’ll start with the last question there. It’s not just about seasonal labor. Obviously, we have H-2A provisions that limit, the workers to ten months here, and then they have to go home. That proves to be a problem for a number of industries and a number of segments in agriculture. So, we need to address that, and we need to revise the H-2A process. It’s too cumbersome. It’s too bureaucratic. Even as we speak, I have farmers in my district, in the nursery industry, for example, where their harvest is happening now. They’re in the field digging plants or need to be right now. Unfortunately, the workers that they depend on are not going to show up until well into December, in all likelihood, because the Department of Labor closed down operations at the beginning of the shutdown. So, this is this is a harm to American farmers that’s caused by the Democrats, shutdown. And, you know, just another example of how they’ve put leverage ahead of the suffering of American people in this case, American farmers that will have ripple effects out into the future. And, of course, some of those farmers that have been impacted are dealing with perishable crops that perhaps will just be lost because they can’t get workers in the field to harvest those crops.

Andrew Huneke: We’ll be back with more Agri-Pulse Newsmakers. But first, Parker Litterick looks at rising cattle input costs in this week’s Ag By the Numbers.

Parker Litterick: Ranchers across the country continue to feel the pressure as cattle input costs climb. Recent drought, inflation and global market disruptions have all pushed production cost higher, driving the nation’s cattle inventory to historic lows. This chart from the American Farm Bureau Federation shows that ranchers input costs, excluding calf cost, have risen nearly 55% over the last eight years. In 2017, it cost ranchers about $550 per head to raise cattle. That number is expected to reach nearly $1,000. Feed costs are a major driver, having doubled since 2020 and hitting a high of $700 per head in 2023. Non feed expenses like fuel, labor and veterinary care are also rising steadily, reaching $400 per head this year. For Agri-Pulse I’m Parker Litterick.

Andrew Huneke: Welcome back to Agri-Pulse Newsmakers, where this week’s panel is going to be focusing on trade, tariffs, and everything that’s going on with agriculture now that the government is back open. Joined this week by Tom Sell with Combest, Sell & Associates and Anne MacMillan with Invariant. Thank you guys both for joining us. And I’d like to get both of your thoughts here on the first question. But Tom, I’m going to go to you first here, sir. We’ve seen what’s included in the CR for agriculture, some of that being a one-year extension of farm bill programs that were left out of budget reconciliation earlier this year, as well as full fiscal year funding for both the USDA and FDA. When do you think the next farm bill will pass, and where are some of the main points where Democrats and Republicans still disagree?

Tom Sell: You know, GT Thompson, chairman of the House Ag Committee, John Boozman, chairman of the Senate, they’ve both, you know, indicated they intend to go to work on the farm bill. You know, really I think had it not been for this long 43-day shutdown, we would have already seen potentially some action within the House ag committee. I know they’ve been readying a package the, the, the portions of this, the very important portions of of the farm bill that were what they were enhanced and changed in the one big beautiful bill are only three titles out of the 12 titles of the farm bill. So, there’s a lot of work to be done. I think there’s a lot of area for for bipartisan agreement on that. You know, most of the controversial issues were already taken care of. Certainly. There might be some within the committees that want to relitigate, a lot of these, controversial issues like, SNAP benefits. But I think in general, there’s, there’s there’s a lot of there’s a lot of goodwill at this point.

Andrew Huneke: And, Anne what are your thoughts? Same question.

Anne MacMillan: I will just totally agree with Tom. I think there is such a will from the both the chairman and the ranking members on the House and Senate ag committee to do something on the farm bill. This might be a little, provocative of a statement, but I do sort of wonder if we will be able to get something that we all have known and understand is as the big farm bill across the finish line, and that maybe we are looking at something that’s a little bit more slim and streamlined. Because I do worry that it feels like nowadays it’s a little harder to get some of these big, big packages across the finish line. And so, yes, I do with all my heart and hearts, do think that we should be able to get a farm bill across. I do think it’s going to be very challenging, especially if there, potentially is another, farmer aid package that gets passed at the end of the year. And there’s not and from a Democratic perspective, something done on SNAP to rectify some of the challenges that have happened, with some of the cuts and then obviously some of the November benefit, challenges. So while I do think there is such a will and I think there is great work being done on the committees on the committee level, I do worry that some of the larger politics, that are happening right now, might intercede again, and that Democrats are still pretty upset about SNAP cuts that happened in the big beautiful bill this summer. And then again, have been reignited in their frustrations with, the November benefit allotments during the shutdown.

Andrew Huneke: And Anne I’d like to ask, you know, before the shutdown, USDA approved requests from about a dozen states for various SNAP restrictions like buying sugary foods, drinks, candy, sugary drinks. These are a big part of the MAHA agenda. Do you see any more regulations like that coming at the state level?

Anne MacMillan: I would, I’d say yes. I think this is a very popular movement across the country. I think that Secretary Rollins and Secretary Kennedy have been very, encouraging of additional waivers to be brought forward. And, you know, there are there are pieces like there was a, a health care grant that came out of HHS that gave extra points if you had submitted a waiver request. So I think there are places. So not even, directly related to USDA programs, but there are it’s showing up in other places that if you do this type of work and if you move forward in your state, to support the MAHA movement, you know, that is going to be looked on very fondly by this administration. So I do expect more waivers to come. I do expect more state legislatures. A lot of them are going to be back in session in January. And I think we might see a more, you know, regulatory activity at the state level. It’s a very, very popular movement at this time. And it’s and I, I don’t expect it to slow anytime soon.

Andrew Huneke: We’re awaiting a ruling on the Supreme Court’s case over whether the president’s use of the International Emergency Economic Powers Act to impose tariffs is constitutional. We asked Tom Sell with Combest, Sell & Associates and Anne MacMillan with Invariant, if it will make it more difficult to lower barriers on American ag exports If the court rules against the president.

Tom Sell: It’s a it’s a very difficult and complex issue. I tend to think, if I’m kind of trying to forecast, I tend to think the Supreme Court is going to go with, with the president on this issue and the and the broad power that he has under, IEEPA but we’ll see. I mean, this this whole, you know, it’s a it is a new brand of, of diplomacy and using, you know, the, the, the regulatory power, over, over imports and, to, to try and promote this kind of America first and negotiate, better deals for U.S. farmers in the entire economy. There’s a totally new way of doing business. And we’re always, you know, I think the, the industry and, and the commerce sector are still trying to adjust, to, you know, what a really is a really consistent vision, out of President Trump. There’s a lot of it creates a lot of uncertainty in the markets. But I tell you what I think China is, is a great example of how this, this more aggressive approach to trade, can bear fruit. You know, time is going to tell. It’s hard to predict a lot of this. But I will say this, I think this this, this new way of doing business this America First style, is going to bear fruit. It did, in the previous Trump administration. And I think we’re going to see kind of a, an upward trend, in our exports, to our, our foreign partners.

Anne MacMillan: I totally agree with Tom. I, you know, I’m still a little 50/50 on where the Supreme Court goes. I mean, during the at the hearing, it, they seemed to some of the justices they were a little skeptical about their use of IEEPA. But I probably would agree with Tom that they end up siding with the president just generally. But I agree with them. I do think, you know, it has been historical that across many, many administrations that agriculture for the U.S. is usually not the top of the negotiating table, while it is always at the top of the negotiating table for other countries that we’re working with. And I think this has been an interesting opportunity for agriculture to reach to the top of the negotiating table from the U.S. perspective. And I think we’re seeing, you know, real changes. And I agree with Tom, I think the Chinese agreement that the China agreement that was just signed was really a big positive step in the right direction for a number of commodities. And, you know, I think you’ve already seen too where the administration is recognizing that, tariffs can implement impact prices in the US. And like as we’ve seen that that they are very conscious of anything raising prices in the United States. And so they are working very diligently to make sure that the tariffs are applied in a way that, does promote overseas market opportunities but doesn’t, impact U.S. domestic pricing. So I think this is a real example of where agriculture sort of shot to the top of the negotiating agenda on and, and everyone’s agenda. And I think that that can only be good for our U.S. producers.

Andrew Huneke: And, Tom, as we wrap, you know, the Constitution gives Congress the power to set tariffs. Do you think Congress could end up trying to take those powers back, if there continues to be disagreements over the president’s delegated tariff authorities?

Tom Sell: That’s a great, great question. I don’t think there’s so much taking it back. You know, there is authorities for both the executive branch and there’s clear constitutional authority for Congress. Congress is a is a clunky body. And I love it. I mean, it is built to be, challenging and, and, you know, to get an agreement on a tariff, tariff agenda among 435 members of Congress and 100 senators is very difficult. And I think that’s why you’ve seen so much of the real action happening in the executive branch. I would love I’m a I’m a creature of Congress. I love that body. I want it to work better. It needs to work better for the American people. So I’d love to see them assert, you know, more more kind of authority working really hand in hand with the administration. Whichever administration was in power, but certainly with, with, President Trump’s very aggressive trade agenda, I think they need to come to the table in a complimentary way. And so I’d like to see that, but I don’t think it’s either or so much as we’d like to see them working together more.

Andrew Huneke: We’ll be back with more Newsmakers, but first, Parker Litterick looks at California’s Proposition 50 and congressional redistricting in this week’s Map It Out.

Parker Litterick: California voters approval of proposition 50 has launched a new redistricting process likely to shift political power for rural agricultural communities in Congress. The Cook Political Report immediately shifted its outlook for 11 race ratings in California, moving all but one toward Democrats. Under the proposed maps, CNN’s reporting shows some conservative areas combining with progressive coastal suburbs, while Key Farm regions in the San Joaquin Valley will be split across multiple districts. This includes Republican Representative David Valadao, district in parts of Fresno and San Joaquin counties, where the farming community would be divided among three seats. The political report shifts the battleground district from leaning Republican to now a toss up. Northern rice and cattle counties, represented by Republican Representative Doug Lamalfa, will merge into broader Bay area anchor districts. Lamalfa serves on the Agriculture Committee, while Valadao was on the Agriculture Appropriations Subcommittee, which writes the annual budget for USDA and FDA for Agri-Pulse, I’m Parker Litterick.

Andrew Huneke: Thanks for joining us for another episode of Agri-Pulse Newsmakers. My colleague Lydia Johnson will host next week’s show from the National Association of Farm Broadcasting’s annual convention in Kansas City. Stay tuned for exclusive interviews from the event on biofuels, trade and other important topics in ag policy. Be sure to check out our website any time for the latest developments on all things food, farm and fuel policy. For Agri-Pulse, I’m Andrew Huneke. Thanks for watching.

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