Shutdown Threat Sparks High-Stakes Talks as Ag Markets Brace for Impact
With a government shutdown just days away, congressional leaders and former President Donald Trump are scrambling to find common ground-while agriculture braces for budget freezes and trade uncertainty.
With just hours remaining before a potential government shutdown, President Donald Trump is set to meet with top House and Senate leaders today in Washington. Senate Minority Leader Chuck Schumer (D-N.Y.) confirmed he requested the meeting, calling it "a first step" toward serious negotiation. But the path to compromise remains unclear.
Senate Majority Leader John Thune (R-S.D.) dismissed any broader bargaining, especially on issues like expiring health insurance subsidies. "This is simply about keeping that appropriations process going," Thune said, downplaying the possibility of deeper negotiations.
Beyond the shutdown, Thune expressed concern over the prolonged trade dispute with China, which continues to suppress commodity prices in ag-heavy states like his own.
"I'm hopeful that the administration can get China back to the table," Thune said, praising the stronger ag exports during Trump's first term. But so far, Chinese purchases remain subdued, heightening stress on the grain market.
Amid the political standoff, Agriculture Secretary Brooke Rollins tried to shift focus with a major announcement: USDA will purchase 417,000 metric tons of U.S. commodities for foreign assistance programs.
That includes 204,000 metric tons (7.5 million bushels) of wheat for Africa, a move praised by industry groups like U.S. Wheat Associates and the North American Millers' Association.
However, just days later, the Supreme Court ruled that the administration can legally freeze further aid, citing executive authority over foreign policy. This decision casts doubt on whether USDA can sustain its current pace of food aid commitments.
So far this fiscal year:
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36% of Food for Peace funds have been spent
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Only 6% of McGovern-Dole nutrition funds have been used
At the inaugural Flinchbaugh Forum in Kansas, former Ag Secretaries Dan Glickman and Mike Johanns urged a shift in ag policy thinking-from short-term fixes to long-term planning.
They recommended reconvening a commission like the one created in the 1996 Farm Bill, which focused on risk management and the future of U.S. agriculture.
Johanns challenged current Ag Secretary Rollins to lead that effort: "How do we keep young people on the farm and on the ranch? How do we compete globally in 25 years?"
Glickman warned that a shutdown could cripple USDA operations: "Most farm programs will continue, but I don't know if any of the employees at USDA will continue... It's going to be very disruptive."
In a rare bright spot, the EPA approved a new treatment for Varroa mites, a major threat to U.S. bee populations. The product, Norroa, contains an RNA-based compound called Vadescana, which disrupts a gene essential for the mites' survival.
The developer, GreenLight Biosciences, emphasized that the treatment is harmless to bees, humans, and non-target species, marking a new chapter in pest management for pollinator health.
Across the Atlantic, European farmers are preparing for the "mother of all battles" over agricultural subsidies, as the European Commission plans major cuts to the Common Agricultural Policy.
The ag coalition COPA-COGECA demanded equal safety and quality standards for imports, warning that trade imbalances could undermine domestic producers.
As the budget deadline looms, Democrats like Rep. Angie Craig (D-Minn.) blame Trump-era trade policies for the ongoing disruptions.
"Trump's tariffs hurt farmers, small businesses, and working families. The solution is simple: stop the trade wars and the chaos in farm country."