Ag Policy Blog
Chris Clayton DTN Ag Policy Editor

Monday 10/07/13

Shutdown Affecting Agriculture in Various Ways

A week into the federal shutdown we are starting to see some of the impacts in different ways on agriculture and agribusinesses.

Meanwhile, Congress is now willing to pay federal employees to stay home after years of complaining about people staying home collecting government checks because they are unwilling to work.

A few ag-related items:

Associated Press reported farmers in Kansas were feeling they have no clue what's going on in the market. (Clearly not a DTN subscriber.) The argument was that the farmers rely on reports from the National Agricultural Statistics Service to make cropping decisions.

The lack of market information was more disturbing for one farmer than not receiving his direct payment that usually comes in October. Other farmers in the article were also waiting for the Conservation Reserve Program checks.

AP also quoted the Wisconsin secretary of agriculture saying a farmer couldn't get paid for a cow he sold because he needed signoff from the Farm Service Agency for a loan.…

Reuters reported major meatpackers such as Cargill and Smithfield "will change the methods they use to determine what price to pay for hogs on Monday because of the partial shutdown."

Smithfield will be relying more heavily on the Chicago Mercantile Exchange. Cargill was going to rely on a private firm to set prices.…

In Oregon, AP reports the U.S. Forest Service has told loggers to shutdown logging operations in national forests. Sen. Ron Wyden, D-Ore., told AP he was told about shutdown, which would affect 150 forests nationally.

"What this means is another economic hit to rural areas in tough economic shape during the shutdown," Wyden told AP.…

In South Dakota, "one of the worst blizzards" in the state's history led to reports of hundreds of cattle killed, as well as other significant damage. Gov. Dennis Daugaard has declared a state of emergency and declared a disaster that would ideally, "pave the way for a federal designation and financial assistance."…}

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Posted at 9:58AM CDT 10/07/13 by Chris Clayton
Comments (3)
Smithfield will be relying on free enterprize. Use to work.
Posted by Bonnie Dukowitz at 10:44AM CDT 10/07/13
I know of a farmer who has a small FSA loan, but becuase they are on his checks, he can't deposit any of his grain and livestock sales until the shutdown is over.
Posted by Pedro Sanchez at 10:19AM CDT 10/08/13
Obama is to busy keeping ww2 vets out of their memorial, which is costing him money to close with rented barricades. You can only guess what these brave men must think of this petty, petulant little man in the White House.
Posted by GORDON KEYES at 12:16PM CDT 10/08/13
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