Dive Brief:
The shutdown of the federal government has begun now that the deadline has passed without a deal between Democrats and Republicans. The effect on the food chain will be sizeable:
- The USDA says food inspections will continue (much of that work is paid for by user fees, rather than taxes.) Crop estimates and similar services, which are crucial to farmers and futures markers, will be halted.
- The Environmental Protection Agency, which has a regulatory role in food production and processing, will shut down. Only a skeleton staff will remain on duty and it will respond only to national emergencies.
- The Food and Drug Administration will place nearly half its staff on furlough. Most of the Department of Labor will close as well.
- The National Institute of Health will suspend the processing of grant requests.
- The Small Business Administration will close nearly all its operations.
Dive Insight:
The entire political class will spend the next few days bickering and blaming. It's an embarrassing spectacle that diminishes the United States in the eyes of the world. Given that, we're going to urge everyone to turn away from Washington and focus instead on the resilience of American industry. We're going to do just fine. The government is closed. But business is open.