When the federal government shut down on October 1, the U.S. Department of Agriculture (USDA) suspended most regular operations across its agencies and began operating on a very limited basis. Many of the programs popular with farmers were suspended as outlined in USDA’s Lapse of Funding Plan, updated on September 30, 2025.
In general, all non-essential USDA activities stopped on October 1, and employees were put on mandatory leave (furloughed) unless classified as “exempt” or “excepted” because their work protects life or property, or because their pay is funded through non-appropriated sources. Only a portion of the USDA staff remains on duty.
On October 21, USDA announced that county FSA offices will re-open to resume core functions, including those needed for ARC/PLC payments, certain loan processes, and other programs.
On October 23, local FSA offices reopened, and farmers can now contact their office by phone, email, or in person. Each office will be staffed by only two employees who will handle limited functions.
The following paragraphs describe the impacted programs according to USDA’s Lapse of Funding Plan, updated with what we know about the functions that are expected to resume with the office reopenings. This information may change as new information becomes available.
Farm Service Agency (FSA)
Based on the Lapse of Funding Plan, two-thirds of FSA employees were furloughed, including the majority of county office staff. As a result, county offices have been closed to the public, and staff could not respond to customer calls, emails, or visits. As of October 23, offices are open with limited staff. Offices can now be contacted by phone, email, or in person.
Direct and Guaranteed Loan Programs
Activities related to FSA's direct and guaranteed loans programs, used by many farmers for operating funds, land purchases, and to acquire equipment and livestock, are suspended, except for limited servicing options
New borrowers will experience disruption in the loan application process, delaying access to loan funds. FSA will not process or approve new direct loan applications or guarantee commitments during the shutdown. In addition, they will not close loans or schedule closings even for loans approved before October 1. The practical impact on farmers is that they will not be able to access loan funds until the government reopens at an unknown future date. Once the government opens, farmers should contact their FSA office as soon as possible to determine the status of their loan application and to work to schedule loan closings for approved loans, as there will likely be a backlog. As of October 23, loan application packages and other documents related to loans or loan applications can be delivered to local FSA offices and can be date-stamped; however, applications will not be processed, and approved loans cannot be closed.
Existing borrowers will also be impacted by stalled loan servicing and payment processing. Loan payments will not be processed, but the shutdown does not change the borrower’s responsibility to make payments as scheduled. Farmers with outstanding loans must continue to make payments as scheduled to avoid delinquency. As of October 23, it is expected that offices will be able to access customer information to answer customer questions relating to payments owed. This also pertains to the Farm Storage Facility Loan (FSFL) Program.
Most loan servicing activities are on hold. FSA will not endorse or release checks from the sale of security. Subordination, debt settlement, and loan restructuring requests will not be processed. Specific loan servicing functions to protect USDA’s security interest and to prevent the loss of value to the borrower’s security will continue, including responding to bankruptcy notifications, and processing protective advances necessary to preserve security, and continuing liens. As of October 23, it is expected but not certain that checks will be able to be endorsed and released. Contact your local office if this applies to your situation.
Commodity Loans and Programs, Disaster Assistance, CRP
Marketing Assistance Loans (MALs), also called CCC loans, were suspended under the Lapse of Funding Plan. The MAL program allows producers to use harvested crops, including corn and soybeans, as collateral for low-interest loans to provide interim financing until their crop is sold. The loan amount is based on the established loan rate for the commodity. With harvest winding up for many crops, now is the time when producers would start applying for marketing assistance loans to provide cash flow to purchase inputs for the next year. As of October 23, farmers can apply for marketing assistance/CCC loans. Contact your local FSA office.
Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program payments would not be processed during the shutdown, according to the Lapse of Funding Plan, delaying any payments resulting from the 2024 crop year, expected to be paid in October. As of October 23, counties in which ARC and PLC were triggered will be able to process payments.
Disaster assistance programs and payments were suspended under the Lapse of Funding Plan. As of October 23, it is expected that payments will be processed for programs such as the Livestock Indemnity Program (LIP), the Livestock Forage Disaster Program (LFP), Emergency Conservation Program (ECP), and the Emergency Forest Restoration Program (EFRP).
Annual Conservation Reserve Program (CRP) contract payments could not be processed per the Lapse of Funding Plan. In addition, no new CRP contracts can be written or amended due to the expiration of the farm bill, which is separate from the government shutdown. As of October 23, 2025, annual CRP payments will be processed. No new contracts will be written.
Natural Resources Conservation Service (NRCS)
NRCS has furloughed over 95% of its workforce. Payments to farmers and landowners with active conservation contracts are suspended, and project work with conservation partners is paused. This means no new contracts, reimbursements, or technical assistance will move forward until funding is restored. Unlike FSA, no information has been released indicating that NRCS or other USDA agencies will resume services. At this time, it is expected that they will continue to operate according to the Lapse of Funding Plan. Annual CRP contract payments will be made by FSA.
Other USDA Agencies and Services
Food Safety and Inspection Service (FSIS) will continue critical inspection of meat, poultry, and egg products, as required by law. However, cooperative payments to states for inspection programs are paused, which may cause service disruptions in the 29 states (including Iowa) operating their own inspection programs.
Animal and Plant Health Inspection Service (APHIS) will continue activities funded through user fees or reimbursable agreements, including inspections, phytosanitary certifications, and wildlife damage management.
Office of Hearings and Appeals’ entire workforce is furloughed, halting all hearings and decisions related to appeals or enforcement actions.
National Agricultural Statistics Service (NASS) has suspended critical data releases.
What Farmers Should Know
The federal government has been shut down since October 1, and we do not have a reopen date. Beginning October 23, local FSA offices are open and operating at limited capacity with only two staff members per office. Not all functions will be available. Local offices can be contacted by phone or email and are open to visitors. Except for marketing assistance loans, new loan applications are not expected to be processed or closed. There is no indication at this time that NRCS services will resume before the federal government reopens.