Ag News

Government shutdown curtails many USDA activities

Georgia farmers rely on support from the USDA and other government departments in a variety of forms, and many of them are being affected by the federal government shutdown that began Oct. 1.

According to the USDA’s shutdown plan published Sept. 30, some 42,262 of the department’s 85,815 employees were to be furloughed. In Georgia, most county Farm Service Agency (FSA) offices are closed or minimally staffed, and new applications for FSA programs and acreage reporting are not happening. Likewise, farm loan services are halted.

Using information from the shutdown plan, Georgia Farm Bureau reviewed, to the extent possible, which services and agencies are continuing and which have ceased operations. 

Below is a review of what work was to be continued and what was to be halted in the FSA and the Agricultural Marketing Service. To read the USDA shutdown plan in its entirety, visit https://www.usda.gov/sites/default/files/documents/fy2026-usda-lapse-plan.pdf.

Farm Service Agency (FSA)

Services that will continue

Select FSA leadership at headquarters and state offices will be on call to ensure continuity of operations in the case of a natural disaster response and to ensure the security interest of CCC. If the shutdown continues past 10 days, additionally, one farm loan employee and/or one county office farm program employee per service center will be on call to complete certain loan processing items to protect the security interest of the government and to prevent the loss of security or loss of value to security for the borrower. This will not include any new loan processing but will include continuing liens, processing protective advances, if needed to preserve security and reviewing a borrower’s account to gather the necessary information to respond to a bankruptcy notification to identify FSA debts and assets. Because the excepted work is ongoing and intermittent throughout the day, the employee shall remain at work to be immediately available to perform the excepted function.

Services that will cease

Significant FSA activities that will cease during the shutdown include:

• Implementation and payment processing of remaining Supplemental Disaster Assistance programs authorized in the American Relief Act (SDRP Stage 1, SDRP Stage 2, ELRP 2023 and 2024 for Flood and Wildfire, Block Grants and any outstanding ECAP payment modifications) • Implementation and processing of disaster assistance payments in support of significant weather-related disasters;

• Accepting and processing farm and commodity loan making activities which provides critical financing during (or right after) harvest;

• Development and implementation of legislation authorized in H.R. 1 (One Big Beautiful Bill), which includes significant changes to ARC/PLC base acres, marketing assistance loan repayment calculations, disaster assistance program policy updates, and dairy margin coverage program several other changes;

• Technical assistance and cost-share assistance related to critical farmland and forestland rehabilitation necessary to support continued agricultural and forestry related activities following widespread disaster events (hurricanes, wildfires, tornadoes, flood, etc.);

• Processing annual CRP contract payments and ARC/PLC payments

• Implementation of farm loan streamlining initiatives

• Deposit and process borrower payments or lender fees or any associated banking activities to include endorsing checks or the release of checks or proceeds from the sale of security

• Advance funds on approved loans

• Obligate or close direct loans previously approved

• Issue guarantee loan conditional commitments or loan closings

• Issue direct loan approval notification letters

• Respond to customer general or specific account inquiries,

• Correspond with customers (either via email, in-person, in writing, or phone)

• Process direct, guaranteed loan applications

• Approve direct loans subject to the availability of funding

• Schedule loan closings for any FSA loan approved and obligated prior to the shutdown

• Process direct loan servicing applications (PLS, subordination, and partial release)

• Issue satisfaction of liens

• Process or approve debt settlement applications

• Approve new advances on guaranteed lines of credit

• Approve lender’s request to restructure a guaranteed loan (including those related to bankruptcy filings)

• Process or approve guaranteed loss claims

• Establish any obligations on behalf of FSA.

Agricultural Marketing Service (AMS)

Operations that will continue

Those Funded by User Fees & Assessments: Cotton classing, tobacco grading, dairy grading, seed inspection, poultry grading, cattle futures, meat grading, Plant Variety Protection Program, laboratory operations, Perishable Agricultural Commodities (PACA), quality assessments and audits, specialty crop inspections, fee-funded warehouse examinations, Federal Grain Inspection Service (user fee-funded activities only) funded by mandatory appropriations, farm bill-funded activities, commodity purchase services, marketing agreements and orders, grant programs – no-year funds funded by non-federal reimbursements, research and promotion programs.

Offices Identified as Partially Funded to Operate During Shutdown: Office of the Administrator and its associated staff offices, deputy administrators whose programs include exempt and excepted activities and associated staff, Category 5: Excepted to protect life and property, market news information, as required for commodities and agricultural markets.

Operations that will cease

Activities identified to not operate during shutdown: Country of Origin Labeling; Federal Seed, transportation services, grant programs funded by annual appropriation, grain regulatory, international food procurement, National Organic Program, Packers and Stockyards Program, Pesticide Data Program, shell egg surveillance, U.S. Warehouse-appropriated, Wholesale & Alternative Markets, standardization, National Bioengineered Food Disclosure, Hemp Production Program.

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