The U.S. government officially entered shutdown mode this week, forcing the USDA to halt most operations and furlough thousands of workers. At headquarters in Washington, D.C., only essential staff remained to handle emergency functions.

"We're keeping the lights on," said one USDA official, "but most of us are heading home until further notice."

While the Trump administration has floated the possibility of reduction in force (RIFs), no firm details have emerged. Rep. Adrian Smith (R-Neb.) hinted that unauthorized but funded positions could be targeted, calling the potential cuts "a thoughtful process to increase efficiency."

Meanwhile, USDA websites and internal emails blamed Democrats for the shutdown, calling it the "Radical Left Democrat shutdown." Even standard operational updates bore overtly partisan messaging, underscoring the political fault lines of the funding lapse.

Former NRCS Administrator Bruce Knight warned that an extended shutdown could cripple vital farm services.

"If this runs a month or two, that sets back the ability for a farmer to get a decision on EQIP or implement conservation projects," Knight said.

While the USDA shutters offices, another major ag issue moved to the forefront: soybean trade with China. In a closed-door briefing, U.S. Ambassador to China David Perdue reportedly told Senate Republicans that soybeans were the top concern in talks with Beijing.

President Trump later confirmed soybeans would be a "major topic" during his upcoming meeting with Chinese President Xi Jinping, vowing: "I WILL NEVER LET OUR FARMERS DOWN!"

Sen. Chuck Grassley and John Hoeven said the administration is prioritizing soybean growers, whose exports to China have plummeted amid trade tensions.

Despite the political gridlock, Senate Agriculture Committee Chair John Boozman (R-Ark.) sees a potential silver lining: the shutdown could help unlock additional farm aid.

Boozman said lawmakers are finalizing a plan to revise USDA's Section 32 spending authority to fund a new aid package using tariff revenues.

"The bankers are very concerned that farmers can show income coming in," Boozman told Agri-Pulse, stressing that action within "the next few weeks" is essential.

Meanwhile, Iowa's congressional delegation is lobbying USDA Secretary Brooke Rollins to move the historic Beltsville Agricultural Research Center from Maryland to Ames, Iowa. Lawmakers argue Iowa State University already leads in related research fields like soybean genomics, adaptive cropping systems, and bee health.

With Brazil now surpassing the U.S. as China's top soybean supplier, the Federal Reserve Bank of Kansas City suggests that biofuels - not exports - will drive future demand for U.S. corn and soybeans.

Proposed EPA policies would increase the required use of biomass-based diesel and incentivize North American feedstocks, pushing domestic demand higher.

Under the 45Z clean fuel tax credit, producers using U.S., Canadian, or Mexican commodities gain a competitive edge over those relying on imported materials like used cooking oil from Asia.

Nearly 50 lawmakers urged EPA Administrator Lee Zeldin to finalize the proposal, warning against reliance on foreign biofuels.

"All federal biofuels policies should prioritize domestic agriculture," wrote Sen. Chuck Grassley (R-Iowa) and Rep. Angie Craig (D-Minn.) in a bipartisan letter.

"Given the number of employees that they're proposing are going to be furloughed, [the impact is] much greater than the county offices. It would be the state offices and much of headquarters."
- Bruce Knight, Strategic Conservation Solutions