GREAT FALLS, Mont. - Montana farmers and ranchers are feeling the effects of the federal government shutdown. And soon, banks will feel it, too, as farmers are unable to make payments because program checks have not arrived as expected. Montana Farmers Union president Alan Merrill said farm loans, disaster assistance, conservation program payments and beginning farmer help all have been put on hold.

"When they delay things like that, it takes at least three weeks to a month to restart up the whole big engine again of the government to get those payments out," Merrill said.

All state and county Farm Service Agency offices are closed, and the website has been frozen. The Natural Resources Conservation Service, which handles some farm payment programs, is mostly closed.

Not only is crop insurance underwriting not available, but crop insurance payments are in limbo, Merrill said.

"All right now, that is serious!" he exclaimed. "It's going to be all delayed payments for the 2013 crops, whether you had hail - which we did - too much rain, too much drought. They're on delay right now."

The National Farmers Union has also confirmed that trade promotion programs have ceased.




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The Florida tomato industry is stepping into uncharted territory following the termination of a decades old trade agreement with Mexico, marking what growers hope will be a turning point in their fight for fair competition.

The U.S. Department of Commerce's decision to end the 2019 Tomato Suspension Agreement has been met with optimism from domestic producers but the path forward remains uncertain as the market adjusts to new trade realities.

Robert Guenther, executive vice president of the Florida Tomato Exchange, framed the move as a necessary reset for protection from unfair competition.

"This decision has been affirmed multiple times now, by the U.S. government, in multiple administrations during the time period of this agreement that dumping has occurred," Guenther explained. "Thus, there need to be penalties applied to the Mexican industry to ensure that the American tomato farmers can have a just and fair playing field."

If it stays the course, on July 14, most Mexican tomatoes will face a 20.91% tariff. U.S. growers lost half their market share since 1994, with imports surging 400% under the agreement. Mexico plans to renegotiate while maintaining antidumping tariffs on pork and chicken, replicating its tomato deal strategy.

The transition unfolds as Florida's agricultural sector faces parallel challenges, particularly with labor costs Guenther identified as the industry's "highest input cost" which depends heavily on the H-2A visa program, which brings workers into the country to work temporarily.

"That's been a very successful program for the tomato industry and a lot of specialty crops and fruit and vegetables in Florida," Guenther noted. "Still, the cost of that program it continues to rise, the bureaucracy of that program continues to rise."

The intersecting challenges, trade policy, labor supply and market dynamics, will determine whether Florida's tomato fields see a renaissance or continued struggle in the post-agreement era. The Commerce Department's 90-day implementation clock continues ticking toward a July deadline which could redefine fresh produce aisles across North America.


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When consumers buy a meat product, they might like the idea it came from a local farm or ranch. But experts say there are still logjams in regional supply chains and a bipartisan bill in Congress is back in play to open pathways for more processing.

This week, a handful of federal lawmakers from both parties reintroduced a bill they have said would make it easier for local livestock and poultry producers to rely on processing sites close by. It would address issues related to inspections, and create a competitive grant program for smaller establishments.

Corey Hart, president of Bowdon Meat Processing in North Dakota, welcomes the approach, noting even when busy, it can be tough to stay competitive.

"Everything's so costly in the meat-processing business," Hart pointed out. "Everything's stainless steel as far as your equipment, plus the building costs."

He said local shops handle the challenges while trying to meet strong demand. Bill supporters said their plan is another way to make local food production more resilient in an industry often dominated by a handful of corporations. The bill's main sponsor is Sen. John Thune, R-S.D., and Sen. Kevin Cramer, R-S.D., is a co-sponsor.

Despite the bipartisan push, it is unclear how far the measure will go.

Connor Kippe, policy specialist for the National Sustainable Agriculture Coalition, said the plan would likely have to be part of the next Farm Bill, a sometimes politically divisive topic. If the proposal does become a reality, he noted consumers might see more meat products raised in an environmentally friendly way.

"Theoretically, it'll allow for a more diversified processing sphere: mixed-species plants versus large single-species plants," Kippe explained.

For example, building up capacity could allow for more processing of grass-fed beef. Kippe added the timing is important because of increased uncertainty for farmers under the emerging trade war.


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Members of a Texas House committee this week will consider a bill that would limit the number of permits farmers must have to participate at farmers markets.

Currently in Texas, growers must have a permit from both the state health department and their local jurisdiction. House Bill 5459 would make it so they only need one permit.

Judith McGeary, executive director of the Farm and Ranch Freedom Alliance, said extra permits add expenses that cut into farmers' profits.

"And it's particularly damaging when you think about smaller markets, especially those in food deserts where people have less access to healthy food," she said, "because the reality is, when farmers markets set up, odds are those farmers are making even less money."

McGeary said the bill would expand opportunities for farmers and increase access to healthy food across Texas.

Several other bills designed to help small growers are being considered by state lawmakers. One bill would allow farmers to sell ungraded eggs to restaurants and retailers. Another bill being considered is called the "cottage food law," which allows Texans to make foods in their home kitchens and make up to $50,000 annually by selling it.

McGeary said everyone benefits if these bills are passed.

"It is valuable to the entire community to make it easier for our farmers to grow and get healthy food to the consumers," she said.

The legislative session ends on June 2. McGeary encouraged anyone interested in these bills to reach out to their legislators.


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