Roughly 50% of USDA employees have been furloughed under the agency's official shutdown contingency plan, released late Tuesday, as Congress failed to agree on a federal spending bill. The USDA, which employs nearly 86,000 workers, will now operate with a skeleton staff until funding is restored.

The length of the shutdown remains unknown. Republicans and Democrats are blaming each other, with Majority Leader John Thune accusing Democrats of pushing partisan demands, while Minority Leader Hakeem Jeffries cites polls showing the public holds Republicans more responsible.

Amid the political finger-pointing, legal action is underway. Two major federal unions, the AFGE and AFSCME, have filed a lawsuit in California, arguing that federal furloughs during a shutdown violate labor law. The suit claims that implementing furloughs-also known as "reductions in force"-is not a lawful function under shutdown conditions.

Meanwhile, USDA Deputy Secretary Stephen Vaden raised fresh concerns about the U.S. fertilizer market, questioning why prices remain elevated despite stable input costs and market conditions. He highlighted that one company holds a majority market share, warranting closer scrutiny by both USDA and DOJ. Vaden is scheduled to meet with a fertilizer executive to discuss the issue.

While some experts attribute rising fertilizer prices to supply and demand imbalances and dependence on foreign producers, Vaden hinted at potential market dysfunction, saying the pricing appears "out of kilter."

On trade, ag leaders are calling for binding, enforceable agreements to restore predictability. At the Congressional Hispanic Leadership Institute, representatives from Western Growers, Corteva, and the Meat Institute stressed the need for trade policies that provide certainty. Tracey Chow of Western Growers said the U.S. must reestablish reliable rules and dispute resolution processes. Karis Gutter of Corteva added that instability harms seed exports due to inconsistent international regulatory approvals.

Trade issues continue to escalate, with President Trump announcing a 10% hike in tariffs on imported lumber, effective October 14. Derivative wood products, such as furniture, will see even steeper tariff increases. The administration cited national security concerns under Section 232, while allowing countries to negotiate alternative terms.

In other developments, a federal judge in South Dakota has allowed a lawsuit to proceed against a USDA animal disease traceability rule requiring electronic ear tags for certain cattle and bison crossing state lines. The plaintiffs-several rancher groups-claim the rule is "arbitrary and capricious," though the judge dismissed arguments that it exceeds USDA's legal authority.

On the animal health front, the FDA granted conditional approval to Zoetis' Dectomax-CA1, a new injectable drug targeting New World screwworm infestations in cattle. The treatment will be available immediately while the company completes data collection for full approval.

Meanwhile, U.S. lawmakers are pushing to protect the egg market from misleading labeling. Senators Joni Ernst and John Fetterman, along with bipartisan House sponsors, introduced the Consistent Egg Labels Act, requiring the FDA to ensure that only poultry-derived products can be labeled as "eggs."

Finally, as farmers face economic stress, Iowa soybean producer April Hemmes summed up the sentiment: "Nobody likes government payments, but my banker says it helps keep us going. Farmers are a hopeful bunch, but this has been a hard time to stay hopeful."