Government shutdown threatens USDA programs, workforce

The U.S. government faces a shutdown deadline at 12:01 a.m. Wednesday, with lawmakers deadlocked over the extension of health insurance subsidies. If no deal is reached, hundreds of thousands of federal workers could be furloughed or forced to work without pay, while many services grind to a halt.

Shutdowns typically close national parks and museums, slow veterans’ services, delay Social Security response times, and suspend data collection at key agencies. The U.S. Department of Agriculture has warned that a shutdown would also overlap with the expiration of some farm bill programs, compounding uncertainty in rural America.

Chris Clayton of DTN reported that the Farm Service Agency notified state and county offices that its authority to administer the Conservation Reserve Program ends September 30. “All work on CRP stops,” the notice read, including site visits and plan development by NRCS staff.

USDA Deputy Secretary Stephen Alexander Vaden told the Senate Agriculture Committee that relocations and restructuring plans will continue despite looming disruptions. “We made a commitment that if employees go with us to these new locations, they’ve got a job,” Vaden said, adding that “government employees cannot afford to start a quality life in Washington, D.C., but they most certainly can in Indianapolis, Indiana.”

However, critics warned the reorganization, and potential shutdown could cripple services. Sen. Amy Klobuchar (D-Minn.) called USDA’s plan a “half-baked plan” and argued it could delay economic data, research funding, and farm programs.

House Agriculture Committee Ranking Member Angie Craig (D-Minn.) also issued the following statement in response to Trump’s White House budget office memo outlining a plan to continue the mass firing campaign of nonpartisan public servants, including at the U.S. Department of Agriculture.

“The Trump administration has already taken an axe to 15 percent of USDA’s workforce this year due to the administration’s shortsighted, ill-informed actions. To now threaten additional mass firings — in the middle of an economic crisis in farm country — is malicious and cruel and would only further the pain in farm country. I’ve had enough with how much this administration says it loves farmers. And enough of my Republican colleagues who continue to do whatever this administration wants – no matter the cost to rural communities and the ag economy.”

According to NBC News, the economic fallout from a shutdown would likely be temporary, but still significant. The Congressional Budget Office estimated the longest shutdown in U.S. history — the 35-day lapse in 2018–2019 — reduced GDP by up to 0.4 percent. Current projections suggest each week of furloughs could slow growth by 0.15 percent.

Markets have historically weathered shutdowns with limited long-term damage. “On average, the S&P 500 has risen about 12 percent in the 12 months following shutdowns,” Saxo Bank strategist Jacob Falkencrone noted. Still, uncertainty adds pressure to an economy already challenged by high inflation, weaker job creation, and nervous investors.

For farmers and rural communities, the immediate effects may be more severe. Conservation programs, grant applications, and USDA loan services are expected to halt, while reports like the Crop Progress update and the World Agricultural Supply and Demand Estimates could be suspended.

Agriculture Secretary Brooke Rollins attempted to reassure producers last week during the Ag Outlook Forum according to Brownfield News, saying, “I believe, sincerely, that the incredible and important programs, especially that help our farmers, that those will continue — that those shouldn’t be affected by the shutdown, but we are still working out all of the details.”