The U.S. federal government shut down on October 1, 2025, after Congress failed to pass a funding bill for the new fiscal year. As a result, many government agencies—including the U.S. Department of Agriculture (USDA)—halted or reduced their services.
Farmers across the country now face delays in financial support, conservation planning, and essential services they rely on to run their operations.
USDA Pauses Key Farm Services
The USDA furloughed nearly 42,000 employees, cutting its workforce in half. Local offices like the Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS) closed or reduced their hours, leaving farmers with limited access to staff and support.
The agency stopped processing new farm loans. It also delayed payments for commodity programs, conservation contracts, and disaster assistance. USDA researchers paused most non-essential studies, and the department suspended several agricultural reports that normally help guide farm planning and market decisions.
Farmers Lose Access to Loans and Payments
Many farmers rely on USDA loans and payments to manage seasonal cash flow. Without these funds, some can’t purchase supplies, pay workers, or cover harvest costs. Others may need to delay or cancel projects planned under USDA conservation programs, such as soil improvement or erosion control.
The shutdown has frozen payments for:
- Farm Operating Loans
- Environmental Quality Incentives Program (EQIP)
- Conservation Stewardship Program (CSP)
- Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC)
- Disaster relief programs
“[The government shutdown] will further destabilize — and in some cases stop — federal services that offer critical loans, disaster assistance, conservation funding, and more.”
-The National Sustainable Agriculture Coalition (NSAC)
The Shutdown Delays Research and Market Reports
USDA agencies also paused many of their economic and market reporting activities. Farmers and distributors depend on this data to make informed decisions about planting, pricing, and marketing.
Without updated reports from the National Agricultural Statistics Service (NASS) or the Economic Research Service (ERS), the industry faces increased uncertainty in pricing and supply planning.
Small and Mid-Sized Farms Feel the Pressure
While the shutdown affects farms of all sizes, smaller operations feel the impact more quickly. These farms often depend on timely loans, technical support, and conservation incentives—services that the USDA has either paused or significantly reduced.
Farmers in the early stages of growing their operations or transitioning to sustainable practices may lose critical momentum if the shutdown continues.
What to Watch Next
The USDA continues to update its shutdown operations page as the situation evolves. No clear end date has been set for the shutdown, and until Congress passes a funding bill, many USDA services will remain suspended.
What You Can Do
Farmers, distributors, and consumers can all take action during this period:
- Monitor updates from USDA and trusted agriculture news outlets.
- Communicate with local FSA and NRCS offices—even if they are closed, many offer online tools or automated phone updates.
- Support local farms through direct purchases or farmers markets.
- Contact elected officials to share concerns about the effect of the shutdown on agriculture.
The government shutdown has created serious disruptions for farmers. By pausing critical services, delaying payments, and cutting off data, the shutdown adds new risks to an already unpredictable profession.
Farmers will continue adapting, but the longer the shutdown lasts, the greater the strain on agriculture systems nationwide.
Farmers are advised to monitor USDA.gov and local agency updates for any changes.
References
- U.S. Department of Agriculture. (2025). USDA Agency Contingency Plan. https://www.usda.gov/sites/default/files/documents/usda-shutdown-plan.pdf
- Polansek, T. (2025, October 1). More pain for U.S. farmers as government shutdown halts payments. Reuters. https://www.reuters.com/world/us/more-pain-us-farmers-government-shutdown-halts-payments-2025-10-01/
- Brownfield Ag News. (2025, October 1). Government shutdown halts USDA loans, reports, and farm program payments. https://www.brownfieldagnews.com/news/govt-shutdown-halts-usda-loans-reports-and-farm-program-payments/
- AgWeb. (2025, October 1). Nearly Half of USDA Employees Furloughed as Government Shuts Down. https://www.agweb.com/news/policy/politics/nearly-half-usda-employees-furloughed-govt-shuts-down
- Politico. (2025, October 1). U.S. economy could lose billions if shutdown drags on. https://www.politico.com/news/2025/10/01/us-gdp-loss-shutdown-00590927