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Tuesday, October 01, 2013

Farm Bill expires; government shutdown leads to furloughs for agriculture workers

While most news attention today was focused on the federal government shutdown, it seemed few people noticed that the Farm Bill expired at midnight. With the shutdown, and without a modern farm law, furloughs immediately went into effect throughout the country. "The future of farm legislation, then, is murky," with members of a House conference committee still not appointed and a House-Senate "conference timeline little-discussed in a crowded and tense political climate," Aarian Marshall reports for Agri-Pulse, a Washington newsletter.

"The U.S. Department of Agriculture plans to furlough employees responsible for some daily and weekly statistical reports on agriculture that are closely watched by traders and investors," David Kesmodel reports for The Wall Street Journal. "Any delays of such reports – which include everything from daily wholesale pork prices to weekly figures on chicken-egg supplies – could affect commodity and equity investors who rely on the information. The lack of a budget deal in Congress also would bring to a halt the payment of some farm subsidies and would slow the flow of loans to farmers, industry experts said."

Dale Moore, executive director for public policy at the American Farm Bureau Federation, told the Journal that direct payments to farmers probably would be suspended in the short term. "Farmland owners receive such payments regardless of crop yields, market prices or economic circumstances," Kesmodel writes. Citing Moore, he reports, "The USDA also won’t be able to process applications for loans to farmers for operating expenses, which are part of the agency’s support programs." (Read more) For a guide to how the shutdown affects the USDA click here.

"Dozens of programs that create jobs, invest in the next generation of farmers, and protect the environment are without funding," says a news release from the Ohio Ecological Food and Farm Association. The programs are the Farmers' Market Promotion Program, the Beginning Farmer and Rancher Development Program, the National Organic Certification Cost-Share Program, the Organic Agriculture Research and Extension Initiative, the Organic Production Market and Data Initiative, and Value Added Producer grants.

Other programs that will expire immediately, according to Aviva Shen, of Think Progress, include dairy safety-net programs, disaster relief, conservation programs, fresh produce for low-income seniors, trade and export programs, and international food aid. (Read more)

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