Inspection, commodity grading, and limited conservation work would continue while research, payments, and data programs pause.

USDA Issues FY 2026 Lapse Plan

The U.S. Department of Agriculture has issued its fiscal year 2026 Lapse of Funding Plan, outlining how the department would operate if Congress does not pass appropriations or a continuing resolution. The plan identifies which activities would continue and which would stop during a lapse in government funding.

Grain and Commodity Oversight

The Agricultural Marketing Service would maintain inspection and grading services for grain and other commodities that rely on user-fee funding. These inspections are essential for export certification and domestic market integrity. Other AMS programs, including market development and organic oversight not funded through user fees, would be suspended until funding resumes.

Farm and Conservation Services

The Farm Service Agency and the Natural Resources Conservation Service would continue limited work tied to mandatory or multi-year funding, such as emergency conservation projects. Activities dependent on annual appropriations, including new farm loans, disaster assistance, and most conservation program payments, would be suspended.

Research and Market Data

Most programs within the Agricultural Research Service and the National Agricultural Statistics Service would pause. This includes the publication of agricultural and grain market data that many producers, elevators, and processors rely on for operational planning and risk management. Data collection and reporting would resume once funding is restored.

Staffing and Continuity

USDA reports a total workforce of 85,907 employees before a potential shutdown. Of those, 42,256 would be furloughed. Employees whose work is legally required or necessary to protect life and property would remain on duty. Staff would receive notification two business days before a lapse and would return to work when appropriations resume.

Industry Impact

For grain handlers, processors, ethanol producers, and seed companies, the USDA plan means critical inspection and certification programs would remain in place, allowing commodities to continue moving through the supply chain. However, the suspension of farm payments, research releases, and data reports could disrupt planning and delay business decisions if the shutdown continues for an extended period.

Source: U.S. Department of Agriculture, “FY 2026 Lapse of Funding Plan”
https://www.usda.gov/sites/default/files/documents/fy2026-usda-lapse-plan.pdf