Farm Bureau Concerned on Farmer Impacts From Government Shutdown

As the partial shutdown drags on, impacts at USDA and elsewhere in the government are building, affecting everything from trade aid payments to implementation of the 2018 Farm Bill. More activities at USDA were suspended this week as the partial US government shutdown continues. Beyond delays seen for the USDA report schedule, the shutdown is having plenty of other impacts across the department as well. USDA's Farm Service Agency (FSA) county offices stayed open during the first week of the government shutdown, but closed December 28 after residual funding was exhausted. FSA office closures are high on the list of shutdown concerns among farmers and ranchers, American Farm Bureau Federation Chief Economist John Newton told IEG Policy. "That impacts the FSA lending programs, that impacts the ability for farmers and ranchers impacted by retaliatory tariffs to do their application for Market Facilitation Program (MFP) payments," he observed. While MFP payments under USDA's trade aid package for farmers that have already certified production with FSA continue, payments to farmers who have not certified are on hold. The current deadline for farmers to sign up for payments under MFP is January 15, but USDA Secretary Sonny Perdue could decide to extend that deadline after government funding resumes. As the deadline approaches Newton said "the best we can hope for is that the government reopens and folks have an opportunity to get in to their FSA office." Meanwhile, the deadline for farmers to certify production for MFP is May 1. USDA is currently considering the issue of the looming MFP sign up deadline. Perdue "will review that deadline and be able to look at whether it makes sense to do an extension or not," USDA Undersecretary for Farm Production and Conservation Bill Northey said on a farm-radio show. As for FSA lending activities, he reiterated USDA "will take into account the fact that there is real disruption," adding, "we will not put a producer at a disadvantage because of the shutdown." Farmers are also unable at this point to obtain or to pay off any marketing assistance loans on eligible commodities.