Federal government shutdowns are nothing new. They’ve happened occasionally over the years, usually lasting no more than a few days. The current shutdown, however, is different – and impacting farmers in new and unprecedented ways.
How Did We Get Here?
Congress failed to pass its annual appropriations bills by October 1st, 2025, the beginning of the new fiscal year, and no agreement was reached on a continuing resolution to extend the negotiations.
At the heart of the impasse is a partisan standoff over large cuts to nutrition programs and healthcare subsidies under the summer’s reconciliation package (One Big Beautiful Bill Act). As a result, Democrats and Republicans have stayed largely entrenched in their positions on spending, with little willingness to budge.
With much of the USDA’s funding being discretionary and mired in a long-expired Farm Bill, the USDA has functionally run out of money.
What Does a Shutdown Mean for Farmers?
42,000 USDA employees have been furloughed, roughly half of the agency’s employees.
Specifically:
- 67% of Farm Service Agency employees have been furloughed. FSA offices have closed, preventing farmers from applying for loans, disaster aid, technical assistance or enrolling in new programs.
- 95% of Natural Resources Conservation Service employees have been furloughed, stalling conservation initiatives, cost-shares and payments to farmers.
- 92% of Rural Development employees have been furloughed, resulting in a total halt in financing for rural initiatives, including renewable energy projects, community loans and rural broadband expansion.
- 96% of National Institute of Food and Agriculture employees have been furloughed, suspending work on specialty crop research grants, food safety outreach and SARE (Sustainable Agriculture Research and Extension) projects.
- 10% of Agricultural Marketing Service employees have been furloughed, including those working at the National Organic Program, market development activities, and state cooperative agreements. (Note: AMS is less affected as it has more “user-fee” flexibility, with many projects funded by user fees and non-appropriated sources.)
Many of these agencies have long been navigating staff shortages and service backlogs, and the longer the shutdown persists, the more systemic the disruptions will become for farmers and supply chains. Even beyond the shutdown, President Trump’s fiscal year 2026 discretionary budget request includes massive cuts within USDA, including an 87% cut to NRCS technical assistance services.
What Happens Next
The federal administration has escalated the stakes for this shutdown by suggesting that, under a shutdown, agencies will have the legal authority to permanently fire employees who work within program areas with expired appropriations. This is unprecedented in recent history and would almost certainly be grounds for legal action if done – though courts move slower than the harm inflicted.
Congress will continue attempting to reach an agreement to get the government up and running again – either by passing an additional continuing resolution that buys more negotiation time or by passing an appropriations package that includes the required spending bills. Given the President’s adamancy that he will not back down from nutrition and healthcare cuts, and the Democrats’ shortage of substantive resistance tools, this shutdown will likely continue for some time.
Carolina Farm Stewardship Association has been one of many vocal advocates urging Congress to stop kicking the can down the road and finally pass not just a full FY 2026 appropriations package, but a comprehensive farm bill as well. Throughout the year, CFSA has led advocacy around conservation, local food procurement, food safety, and many other programs administered by USDA and FDA.
If you are a farmer or food business that’s been impacted by a lapse in USDA services or support, let us know. CFSA will continue to fight for the resources and services farmers in the Carolinas need to not just survive, but thrive.
