Commodity Agriculture Is Dependent on Federal Funding
The ongoing government shutdown is exposing a critical weakness of American commodity farming – it can’t function without federal funding. In fact, corn, soybean and wheat farmers will lose between $100 and $400 per acre this year – despite record production – because they can’t sell their crops for what it cost to produce them. And if the government won’t make up the difference, they’ll be in serious trouble.
“Every day the government isn’t open, there’s slightly more anxiety in farm country, especially as growers are harvesting and having to pay bills and having to pay off their bank,” Texas farmer Russell Williams told Politico. “There’s serious risks of farm bankruptcies this year.”
Many farmers are dependent on Farm Service Agency (FSA) loans to purchase their seed and chemicals for each cropping season. Even while they’re harvesting the 2025 crop in October, they’re starting to plan for 2026, and that means applying for loans. With FSA shut down until the government reopens, some farmers may be forced to take out higher-interest loans at banks, putting them even further in the red.
To make up their deficits from this year’s unprofitable bumper crop, many farmers are counting on emergency payments from the federal government. President Trump has promised direct aid payments to farmers, but those, too, are on hold until the government reopens.
Aside from direct payments and loans, farmers are also dependent on the USDA’s data-gathering agencies, like the Economic Research Service (ERS) and the National Agriculture Statistics Service (NASS), for daily, weekly and monthly reports on commodity markets, exports, harvest estimates and forecasts.
Ever since October 1, however, the newest information on the ERS website has been a banner that says, “Due to the Radical Left Democrat shutdown, this government website will not be updated during the funding lapse. President Trump has made it clear he wants to keep the government open and support those who feed, fuel, and clothe the American people.” NASS and other USDA websites have similar messages.
While American farmers have been urged by agricultural scientists and farm supply companies alike to push for ever-higher yields to “feed the world,” this year it’s becoming painfully evident that the world doesn’t need – or want – American commodity crops. China has stopped importing soybeans from the U.S., making up the deficit from Brazil and Argentina. And with the end of the U.S. Agency for International Development (USAID) program, the federal government is no longer buying surplus commodity crops to ship overseas as food aid.
The lesson for eco-farmers? When a bumper harvest is classified as an emergency and farmers can’t break even without government subsidies, something’s fundamentally wrong with the system. While the shutdown is only temporary and government payments will probably resume in a few weeks, it should serve as a wake-up call. The only long-term solution will be to reduce production of commodity crops, cut back on expensive inputs, and grow a wider diversity of crops that are less dependent on international markets.
