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Government Shutdown Could Hurt Grain Markets As Export Reporting Halts

14:46PM Dec 14, 2018

“We won't have any running barometer of the Chinese purchases,” he says. In today’s market, that lack of information could directly hit markets.( Farm Journal )

President Trump has been threatening to let the government shut down over his border wall. This week the world watched a heated exchange between the president and the Speaker of the House come January, Nancy Pelosi. According to Jim Wiesemeyer, ProFarmer policy analyst, if parts of USDA would shut down, the lack of export reporting could hurt grain markets.

“I don’t think Trump can back down on this,” Wiesemeyer told Clinton Griffiths on AgriTalk Friday. “We've got both parties digging in their heels.”

If a compromise cannot be reached, the government will shut down. A few USDA programs would continue to operate: weekly grain export inspections, federal meat, poultry and egg inspection, and mandatory livestock price reporting. FDA would continue vital activities in addition to Supplemental Nutrition Assistance Programs.

However, Wiesemeyer says USDA’s website would come down as would all USDA statistical reports, including daily and weekly export sales.

“We won't have any running barometer of the Chinese purchases,” he says. In today’s market, that lack of information could directly hit markets.

In addition, FSA offices would close. So, any payments from those offices would halt, including the possible second round of MFP payments under negotiation today by USDA Secretary Sonny Perdue and the White House Office of Management and Budget.

Last year, President Trump threatened to shut down the government over the border wall and did not follow through.