One consequence of the current federal government shutdown is that Farm Service Agency (FSA) officials are unable to cosign checks received by FSA borrowers for sales of crops and livestock.

Where the proper loan paperwork has been executed and filed, sales of crops and livestock must be paid with joint checks payable both to the producer and to the producer’s lender. This gives the lender the opportunity to discuss with the borrower how the check proceeds will be distributed among loan payments, new purchases, etc.

Until the federal government reopens, FSA borrowers will essentially have to sit on their checks, which may provide at least temporary financial hardship to producers and their families, as well as to suppliers waiting for payment. We all hope that the government shutdown will end soon so that we can return to business as usual.