Government Shutdown: What It Means for Ag

The shutdown of the federal government has entered its third week. Here’s a glimpse of what it means for agriculture.

  • The trade-relief program for farmers and ranchers burned by retaliatory tariffs has paused for farmers who did not certify their 2018 production by Dec. 28. Farm Service Agency offices remained open for the first week of the shutdown but are closed now until Congress approves new funding.
     
  • Ag producers who alreadycertified their 2018 production are not affected. USDA has paid out $2.78 billion since Dec. 21 when appropriations expired. The department has processed $5.2 billion of the total $9.6 billion in direct aid pledged for certain commodity producers. Agriculture Secretary Sonny Perdue announced Tuesday the USDA would extend the Jan. 15 deadline to apply for assistance by as many days as the government is shut down.
     
  • The work of the U.S. International Trade Commission is at a standstill, which means progress is stalled on the U.S.-Mexico-Canada Agreement, the deal that replaces the North American Free Trade Agreement. The commission has to analyze the economic impact of the agreement and submit a report to lawmakers. The report is due by March 15.  
     
  • A series of statistical reports from the World Agriculture Outlook Board is postponed. Among reports scheduled for this Friday that will not publish are the January World Agriculture Supply and Demand Estimates, quarterly Grain Stocks, monthly and annual Crop Production reports, Winter Wheat/Canola Seedings, Rice Stocks and Cotton Ginning numbers.
     
  • USDA services continuing during the shutdown include inspections of meat, processed egg, and poultry.

Sources: DTN, Politico, USDA, Wall Street Journal