The ongoing federal government shutdown has blocked farmers’ access to USDA marketing assistance loans. This typically serves as a critical source of short-term cash flow during harvest.

The program allows producers to use harvested grain as collateral for low-interest loans. It helps them pay down operating debt and wait for higher market prices. With the USDA offices closed, that safety net is gone. The unavailability of USDA marketing assistance loans forces farmers to carry more debt and accrue additional interest.

Auburn University economist Mykel Taylor says the shutdown takes a tool away from farmers who depend on it to maintain good standing with lenders. Many producers are holding grain in hopes of winter price rebounds. Margins are incredibly tight.

The impact varies by region and commodity. Cotton growers are particularly vulnerable. The cash price is around 60¢ per pound. The break-even price is near $1. Without access to loans, many lose the bridge between harvest and market recovery.

As the shutdown continues with no clear end in sight, financial pressure mounts. The disruption removes a vital mechanism designed to help farmers manage volatility and maintain stability through uncertain markets.

Read more about the loss of marketing assistance loans here.