The U.S. federal government shutdown will stop some payments to farmers and also delay access to federal farm loans.
Reuters reports it’s one more blow for producers already struggling with low crop prices, record-high debts, and a trade war at the height of the fall harvest.
Republican and Democratic lawmakers couldn’t agree on a plan to fund the federal government, and this will last until one party gets enough votes for its funding plan.
“Even short interruptions in payments could deepen farmers’ economic turmoil,” said Chad Hart, an agricultural economist with Iowa State University. “After all, it costs money to run those combines at harvest.”
While administration of nutrition programs and food inspections will continue, much of USDA’s other work will cease.
That includes processing farm loans and making payments to farmers, including billions in disaster aid.
It will also not process annual commodity and land conservation payments typically issued by October.
