Ag Industry Receives 2 Hits

As you all know, our federal government has been on a shutdown since October 1st. This happened because members of Congress could not come to a budget agreement. The shutdown has forced about 800,000 federal employees off the job. So what impact does the government shutdown have on the agriculture industry?

Farmers are currently unable to access vital agriculture reports to make critical marketing decisions. The National Agriculture Statistics Service has stopped putting out new reports. These reports include information about supply and demand, prices, and exports. These reports are also used to set prices at the Chicago Mercantile Exchange. Feeder cattle are currently at a record high. According to the CME, live cattle and feeder cattle futures could be impacted. All website with past information have been taken down due to this government shutdown. Farmers are not able to track cattle auction prices as well. However, some USDA duties will continue through this shutdown such as meat and poultry inspections.

Since the United States Department of Agriculture is not operating, neither are local farm service agencies. This means farmers can not apply for loans, sign up for different governmental programs, or receive government checks from programs that are already enrolled in.

This shutdown occurred just at the same time our current farm bill expired. The combination of the two events will have short and long term impacts. This bill does a number of things including managing food stamps and regulating crop insurance. Many farm bill programs are funded through the whole year so the first major effects will take place at the beginning of 2014. Also, the farm bill expiration caused funding to expire for a few different conservation programs such as the Conservation Reserve Program and the Grassland Reserve Program.

The effects of the government shutdown will be different for each person and business involved in the agriculture industry. It is unclear how long this shutdown will continue. How long do you think this shutdown will continue? How is this government shutdown affecting you and your family?

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