US federal shutdown hits farmers who depend on market data
Modern farmers depend on government agency data to plan their next year's crops and lock-in prices for commodities.
Conservation Reserve Program
Farm Service Agency
Kansas Farmer's Union
National Agriculture Statistics Services
U.S. Agriculture Department
WICHITA, Kan.—When Tim Peterson finished planting his 900 acres of winter wheat last week, the usually market-savvy Kansas farmer struggled with critical marketing decisions without access to vital agricultural reports, which have become casualties of the U.S. federal government shutdown.
“We have no clue what is going on in the market,” said Peterson, who farms near Monument in northwest Kansas. He typically protects his investment in seed and fertilizer by “locking in” the price his wheat crop will fetch next July with a futures contract, which shields farmers from market fluctuations by guaranteeing a price while the crop is in the ground.
Farmers and livestock producers use the reports put out by the National Agriculture Statistics Services (NASS) to make decisions—such as how to price crops, which commodities to grow and when to sell them—as well as track cattle auction prices.
Not only has the NASS stopped putting out new reports about demand and supply, exports and prices, but all websites with past information have been taken down.
This worries Peterson far more than his other problem: When will his $20,000 subsidy check from the government, which usually comes in October, arrive?
Since the U.S. Agriculture Department’s local farm services offices also have been shuttered, farmers can’t apply for new loans, sign up acreages for government programs or receive government checks for programs they’re already enrolled in. And at a time when researchers who are seeking new wheat varieties and plant traits should be planting experimental plots, all work has ground to a halt.
Kansas Farmer’s Union president Donn Teske, a grower in the northeast Kansas town of Wheaton, worried about payments he’s owed for idling some environmentally sensitive land under the Conservation Reserve Program.
“I always look forward to that check coming in the mail,” the 58-year-old said.
But all of that, farmers say, pales in comparison to the lack of agriculture reports, because farmers today depend far more on global marketplaces than government payouts like in the past.
The reports, for instance, can alert them to shortfalls in overseas markets or if there’s a wide swing in acres planted, both of which would prompt U.S. growers to plant extra crops to meet those demands or hang on to a harvest longer to get a better price.
“That information is worth a lot of money, a lot more than $20,000 a year,” Peterson said in regards to his subsidy.
During the shutdown, the USDA won’t provide sales reports from Oklahoma livestock auctions that are used to help set prices on the Chicago Mercantile Exchange, state Department of Agriculture employee Jack Carson said.
Another ripple effect is that dairy farmers may see a delay in checks they’re owed by the federal milk income loss program, said Wisconsin agriculture secretary Ben Brancel.
Brancel also noted his office heard from a farmer on the first day of the shutdown who’d received a check for a cow he sold, but because he had a Farm Service Agency loan, he couldn’t cash it without obtaining a signature from an FSA official.
“Our advice to him was he was going to have to wait, that there wasn’t anything he could do about it,” he said.
The shutdown came just as the current farm bill expired. Farm subsidies remain intact for fall crops currently being harvested. Crop insurance, funded under a permanent authorization, is mostly unaffected.
The expiration of the law won’t have an impact until the end of the year, when some dairy supports end and milk prices are expected to rise sharply.
Associated Press writers Mary Clare Jalonick in Washington, D.C., M.L. Johnson in Milwaukee and Kelly P. Kissel in Little Rock, Ark., contributed to this report.