Potential Implications of the Government Shutdown for the Cotton Industry

The National Cotton Council released an analysis of how the cotton industry may be impacted by the government shutdown.

Overall PCG and NCC anticipate that most USDA activities will be shut down or scaled back and nearly half of USDA’s employees will be furloughed. However, most activities supported through mandatory appropriations or user fees will remain in operation. Certain USDA law enforcement activities will also continue as will activities that are necessary for the protection of life and property.

Selected Programs or Operations Expected to Fully or Partially Shut Down:

• Farm loans and other farm payments — including ARC/PLC payments, marketing assistance loans and disaster assistance programs (NCC sent a letter to Undersecretary for Farm Production and Conservation Richard Fordyce stressing the need to keep the market assistance loan in operation).

• Development and implementation of the new safety net reforms included in the One Big Beautiful Bill Act.

• Provision of most conservation technical and financial assistance.

• Agricultural export credit and other trade development and monitoring activities.

• Most NASS statistics, the monthly WASDE report, ERS commodity outlook reports, and other agricultural economic and statistical reports and projections.

• Risk Management Agency compliance and oversight activities; regional office engagement; and new product development.

• Assistance for the control of most plant and animal pests and diseases, unless funded by cooperators or other non-appropriated sources.

Programs and Services Expected to Continue:

• AMS cotton classing, cotton quality reports, daily market news reports.

• Grain and other commodity inspection, including weighing and grading services funded by user fees.

• Inspections for import and export activities to prevent the introduction and dissemination of pests into and out of the U.S.

• Continuity and maintenance of some research measurements and research- related infrastructure, such as germplasm, seed storage and greenhouses.

• Care for animals, plants and associated infrastructure to preserve agricultural research.