Obama’s USDA Less Transparent Than Bush’s

The Environmental Working Group has worked hard to track the billions lavished on the wealthiest and largest farm operations in the country, in the hope that releasing the information would spur public demand for a sane and sensible agriculture policy. By following the money, we’ve exposed the grossly inequitable federal farm spending that enables the biggest subsidy recipients to maximize their haul of taxpayer dollars while skirting tepid regulations.

Our 2007 database used previously unavailable records to uncover nearly 500,000 individuals who had never been identified as farm subsidy recipients. Many had been shielded by their involvement in byzantine mazes of co-ops and corporate entity shell games. For example, the database revealed that Florida real estate developer Maurice Wilder, reportedly worth $500 million, was pulling in almost $1 million a year in farm subsidies for corn farms he owns in several states.

Unfortunately for our 2010 update, the data that provided such a revelatory account of just who receives the billions paid out in the maze of federal farm subsidy programs is no longer available to us. As The Associated Press’ Mary Clare Jalonick reported:

Data being made public Wednesday (May 5th) shows that the wealthiest farmers in the country are still receiving the bulk of government cash, despite claims from lawmakers that reforms in the bill would put more money in the hands of smaller farms. At the same time, a series of exemptions written into the bill has made it more difficult for the public to find out who is receiving what.

Chris Clayton, an editor at the DTN/Progressive Farmer Ag Policy news service, sums up in more detail (subscription required) the loss of transparency in the US Department of Agriculture’s latest farm program reporting.

Under the database released this week, it’s impossible to track how many individual people in Manhattan or Beverly Hills, Calif., collect payments. The real-estate developer who topped the recipient list in 2007 also doesn’t show up anywhere among the top recipients for farm payments.

The difference is that USDA won’t aggregate the payments collected and link them to an individual any longer. So now it’s unknown if someone may be collecting large amounts of program payments if that person collects the money through various partnerships or incorporations.

That’s because Congress changed the wording of the 1614 provision in the 2008 farm bill from USDA “shall” release such data to USDA “may” release such data. USDA has since decided not to release the information. According to USDA officials, the database can cost as much as $6.7 million to produce, and Congress did not appropriate money to compile the database.

USDA says that they’d like to be as transparent as the last time (in 2007, under the Bush administration), but that Congress didn’t give them $6.7 million to do so. Congress, however, did appropriate $50 million as part of the American Recovery and Reinvestment Act of 2009 for USDA computer upgrades that, in the agency’s own words, “is a priority modernization effort that will transform the way FSA (Farm Service Agency, the USDA division that cuts the checks) delivers farm program services and benefits to producers, farmers and ranchers.”

So USDA can’t find a few million to properly track the billions in taxpayer funds paid out in farm subsidies, but it has plenty of IT money to ensure that the largest and wealthiest operations in America get their checks as fast as possible. Sounds like we need to organize a transparency bake sale for USDA — and maybe a little refresher course on public access to government information.

This raises a broader concern about the Obama administration’s much-touted commitment to transparent and accountable government. Just last month, Agriculture Secretary Tom Vilsack unveiled USDA’s “Open Government Plan, formalizing plans to integrate openness, transparency, participation and collaboration into the Department’s everyday operations.” Under the plan’s “Transparency” heading it says:

Each of the Department’s goals provides a different aspect of transparency to the public, and as a whole, the goals move USDA towards doing its work in an open and transparent manner. Providing greater accessibility to data and current information gives the public a better understanding of USDA as an organization. Greater transparency also provides the public with the tools and information it needs to provide the Department with valuable feedback and suggestions.

That USDA announcement followed hard on President Obama’s transparency initiative:

Government should be transparent. Transparency promotes accountability and provides information for citizens about what their Government is doing. Information maintained by the Federal Government is a national asset. My Administration will take appropriate action, consistent with law and policy, to disclose information rapidly in forms that the public can readily find and use. Executive departments and agencies should harness new technologies to put information about their operations and decisions online and readily available to the public. Executive departments and agencies should also solicit public feedback to identify information of greatest use to the public.

For an administration committed to transparency and accountability — and supposedly to reforming the payments to wealthy farm operations — there should be no debate over finding $6.7 million to track the distribution of billions of taxpayer dollars.

Many media outlets besides the AP and DTN are taking note of the gaps in USDA’s farm program reporting. The Kansas City Star editorialized over the weekend on the problem with lavishing billions on wealthy farmers as well as the USDA’s backsliding on transparency in government payments:

What’s worse, in the last farm bill from 2008, Congress slipped in language that makes it tougher to follow the money trail.

The Southwest Iowa News, which comprises six small-town Iowa papers, wrote on its editorial page:

Taxpayers should demand that the farm bill be amended to bring the transparency needed to determine how taxpayers’ dollars are being spent.

I’m going to start cold calling for the USDA bake sale now. Anyone know Maurice Wilder’s phone number and whether he prefers creme pies or lemon bars?

  • Bill Harshaw

    It would be interesting to see the rationale for the $6.7 million. The only reason I could think of off the top of my head is that the file system in KC was changed when they went from issuing payments at the county office to issuing payments from KC. But $6.7 million would pay for a bunch of programmer time and a lot of mainframe time. Given that the underlying logic ought to be the same, I can’t imagine it would be hard to do. Hard to test, yes, but not hard to do.

    The other thing which comes to mind is the switch to attribution for controlling payment limitation. That could be having a big impact on the available programmers. But it would seem, once they make the changeover, they’d again be able to release the data. (In my (aged) mind, “attribution” is the same as what USDA was doing in providing you entity payments tied back to individuals.)

  • M.A. Kinnaman

    Just more proof that the politicians are in the back pockets of the rich and powerful. This is tax dollars going to these welfare recipients and it should be available to the public what is being done with it!

  • carrpll forrester

    congress get honest and open with the taxpayers.

  • Bill Ward

    I live in a rural community,and we own 57 aceres of cotton and soybean land,so I know a little about subsisies. I have watched a handful of farmers buy up a large portion of the land in our community.Since 1995, we have recieved between 5 and 600 in gvt payments. What the average tax payer dosent know, is that much of the subsidies are broken down,and they are hard to track.Corporate Farmers are the largest welfare recipients in our country.

  • Larry Coelho

    So much for change in America. How shameful and disapointing Washington has become.

  • Donna Souza

    I was recently rendered obsolete for my previous career. Database research was near and dear to my heart.

    I thought I would use my skills and do some looking that the farm subsidy databases. OH MY!!!

    I was surprised to see how much was being distributed to so many of the BIG local farms. If you keep digging through the info you will find that in many cases the subsidies do not go to one person in a farm family. Often the wife, husband, children, grandchildren, named corporate owner and non incorporated owners.

    Of course these farmers are all doing their best to support the local car dealership. All own new cars for several family members.

    Many own second and in some cases third homes away from the local community. Don’t mention welfare in their presence, they condemn it!!

  • Colleen Blanchard

    We own a small business and have struggled for 12 years with NO help from anyone. It is very upsetting to read about corporations receiving all this money – what about all of us little people!

  • William Edgar

    Open up your old (2007) data base and sort it by current politicians serving in DC or state governments. You will probably get your answer from the results.

  • Donna Souza

    HHHMMMNNN So all four Republican candidates say they would get rid of farm subsidies??? ALL of the individuals that I know that receive large subsidies in Merced county are Republicans. Does this fall into the category of don’t bite the hand that is feeding you?

    I would be surprised if the Republicans would risk a vote that would change the status quo.

  • Donna Souza

    Colleen you have to be BIG business to get help. Most of the little guys like us struggle to survive. If you can’t afford a CPA or tax lawyer to help get the subsidies I guess we don’t need help.

    Washington still doesn’t seem to understand that it is the small business that is creating American jobs. Democrats or Republicans, they aren’t willing to address the reality of Main Street.

  • John Thacker

    “I would be surprised if the Republicans would risk a vote that would change the status quo.”

    Well, John McCain voted against the farm bill, just like he voted against the previous farm bill. Barack Obama, of course, supported the farm bill. Prefer Obama for other reasons all you want, but if farm subsidies were your number one issue, McCain was your man.

    The American people didn’t vote for Change on farm subsidies, they voted for the status quo, and that’s exactly what we’re getting. I can’t imagine why people expected anything different.

  • Karl Bremer

    Anti-government zealot Rep. Michele Bachmann has voted against farm subsidies too, but she has no trouble cashing her own farm subsidies checks:

    http://tinyurl.com/6dq326

    http://tinyurl.com/5t6rqf

    Thanks to EWG for their data that allowed me to expose this charlatan!

  • Donna Souza

    Yeah, status quo and a health bill. HHMMMHH. Having an uninsured son that has major prior existing conditions and is unable to work very much, I guess I would pick Obama. My son will not likely live long enough to use the health care but others will. As for me, I am lucky enough to have Medicare which wasn’t going to work either.

    McCain nearly got my vote but then he Palin’ed out. But for dear Sarah he might have been the President today.

    The subsidies still suck no matter who voted for them or not. They need to be seriously remedied.

  • Lowell

    In regards to Karl Bremer’s comments- Has there ever been a democrat who receives a subsidy that would vote to end it? Some individuals have the character that enables them to support reducing their legal and legislated government gift. It is quite absurd
    to suggest that only those that support government gifts to farmers should receive them and those that oppose these government gifts, and pay their due taxes should financially deprive themselves of their legally entitled gift. It is reality that these massive government gifts have capitalized themselves into land values and only allow those receiving them have any chance of staying in the farming business. Obviously the differences in the amounts of these gifts and the financial security insurance
    blankets (aka known as federal crop insurance) enable some individuals a massive financial advantage.

  • John Thacker

    @Karl Bremer, your post makes me respect that loony Bachmann more, not less.

    I’d much rather have a politician who voted against the subsidies, but I don’t particularly find it hypocritical for someone who owns a farm to take the money if it’s done in a fair way. I’m actually sort of impressed to see someone voting against a program that benefits her directly.

    Next you’ll be telling me that some Democrats voting against Bush’s tax cuts but still took the money instead of voluntarily returning it to the Treasury Department. Does that make them evil hypocrites? Or is the more important thing how they voted?

  • Mr Curious

    What about dairy, beef, chicken farms? Where is the data on those subsidies? It’s that $ number higher?

  • Don Carr

    Mr. Curious — those operations do not for the most part directly receive subsidies, however the feed they use — corn — is highly subsidized.

    90% of all farm subsidies go to corn, cotton, rice, wheat and soybeans.

  • Required
  • Dani

    Interestingly, substances that are heavily subsidized, and thus used often as food additives, are often the same substances that people are becoming allergic to at alarming rates, which may be the final answer to this problem. When chunks of the population cease to buy a product because of the kind of additive it contains, the smart producer switches to a different additive with fewer allergens.
    Seriously, go look up corn allergy, and thank the good Lord that you don’t have one!