As the U.S. government faces yet another funding crisis, the U.S. Department of Agriculture (USDA) is preparing for operational disruptions that could ripple through the entire agricultural sector. On Tuesday, Deputy Secretary Stephen Vaden stated that the USDA has already reactivated shutdown plans drawn up during the previous administration, and will use them if appropriations lapse at midnight.

"We already have shutdown plans. They were developed under the prior administration, and if necessary, we'll implement them," said Vaden during a press conference in Raleigh, North Carolina. He emphasized that the department has legal limitations on what it can do without budgetary authorization. "All our payment services and those with legal exemptions will continue. But for other services, once funding runs out, we have to close them. There are legal consequences if we don't."

Under those plans, essential operations such as meat inspection, fruit and vegetable inspections, and animal and plant health monitoring would remain active. The Food Safety and Inspection Service (FSIS) and the Animal and Plant Health Inspection Service (APHIS) would continue to operate, ensuring that key aspects of the food supply chain remain uninterrupted.

Similarly, the Agricultural Marketing Service (AMS) would still provide grading, inspection, and quality assurance services, as well as oversee commodity promotion programs and laboratory testing. These operations are considered vital for maintaining market integrity and export compliance.

However, many other USDA agencies would be forced to suspend operations, most notably the Farm Service Agency (FSA). Key functions such as loan servicing, conservation planning, and farm program enrollment could halt, creating delays and uncertainties for producers already grappling with input costs, climate volatility, and global supply chain pressures.

While some FSA activities related to loan guarantees may continue, the overall impact could be significant, especially in rural areas where USDA services provide a backbone of support. Decisions on which activities resume or remain halted could fall under the discretion of Vaden and the Under Secretary for Production and Conservation.

Elsewhere in government, the Environmental Protection Agency (EPA) stated that it would continue pesticide registration work, as those functions are funded through industry fees and not subject to annual appropriations. According to the EPA's shutdown guidance, those funds can continue to be obligated until exhausted.

Adding to the uncertainty, former President Donald Trump made comments on Tuesday suggesting that the White House could consider mass layoffs of furloughed employees during the shutdown, further raising alarms. "We can take irreversible steps during the shutdown that hurt them... like putting a lot of people out of work," he said.

The Congressional Budget Office (CBO) estimates that up to 750,000 federal employees, who collectively earn around $400 million per day, could be placed on unpaid leave. The actual number of furloughs would shift based on agency-by-agency needs and decisions made during the course of the shutdown.

For U.S. farmers, ranchers, and ag service providers, the uncertainty threatens to derail planning cycles, delay program payments, and slow down essential regulatory work. With the farm bill already in limbo and commodity markets reacting to every headline, the USDA's preparedness may offer little comfort unless Congress acts quickly to avert a shutdown.