Cut Spending – But Not My Farm Subsidies!

by Chris Campbell, Amber Hanna and Don Carr

That some members of Congress are farmers is hardly new. Many of the Founding Fathers worked the land. But as the industrial age transformed America’s agrarian society and technology made it possible for fewer farmers to grow more crops on more land, the number of lawmakers actively engaged in agriculture dropped sharply.

We don’t have a firm count of how many farmers are serving in the current Congress, but we do know, based on a recent analysis of the Environmental Working Group’s Farm Subsidy Database, that 23 of them, or their family members, signed up for taxpayer-funded farm subsidy payments between 1995 and 2009.

This would be a good place to point out that just five crops – corn, cotton, rice wheat and soybeans – account for 90 percent of all farm subsidies. Sixty-two percent of American farmers do not receive any direct payments from the federal farm subsidy system, and that group includes most livestock producers and fruit and vegetable growers.

Among the members of the 112th Congress who collect payments from USDA are six Democrats and 17 Republicans. The disparity between the parties is even greater in terms of dollar amounts: $489,856 went to Democrats, but more than 10 times as much, $5,334,565, to Republicans.

One reason for the disproportionate number of Republican lawmakers benefiting from farm subsidy programs is the current scarcity of rural Democrats in Congress – casualties of the Tea Party wave that swept into office in November of 2010. (This was despite the Democrats’ decision to bow to the wishes of the subsidy lobby by passing a status quo 2008 farm bill in a misguided bid to hang on to those seats.)

Several new members of Congress who won with tea party support have been less than eager to talk about farm subsidies ever since the news broke last year that they, or their families, personally benefit from those very taxpayer dollars.

EWG doesn’t believe that the payments to lawmakers are improper or illegal. But the fact that so many more Republicans in Congress receive so much more in farm subsidies than their Democratic colleagues does highlight the GOP’s controversial decision to spare those programs from the budget ax – even as it slashes funding for so many others. Consider:

  • In January, David Rogers of Politico, and Phillip Brasher at the Des Moines Register, reported that the Republican Study Committee proposed to eliminate the meager federal funding for an organic food growers’ program without even mentioning the the possibility of cutting spending for entitlements that send checks out to largest producers of corn, cotton and other commodity crops – regardless of need.
  • Then last week (March 21), National Journal reported that the Republican-led House Agriculture Committee is backing cuts to the Supplemental Nutrition Assistance Program – previously known as food stamps – in the face of record enrollment levels triggered by high unemployment. But not even minimal reductions were proposed to the excessive payments to wealthy farms.

The GOP-led support for subsidies also comes at a time when big commodity farms clearly don’t need taxpayer funding.

The farm sector is white-hot, and has generally fared extremely well as recession gripped the rest of the economy. Farm income and prices for commodity crops are soaring. In 2008, $210,000 was the average household income of farms that received at least $30,000 in government payments that year. But according to the House Agriculture Committee and the Republic Study Committee, payments to those farms should stay in place while the record 43 million Americans enrolled in SNAP – millions of whom are unemployed for the first time – face slashes in the help they get to put food on the table.

It’s important to note that two of the Republican senators who collect subsidies – Charles Grassley of Iowa and Richard Lugar of Indiana – have been long-time leaders in the effort to reform federal farm programs. Both have fought to right the gross inequity of sending 74 percent of taxpayer-funded payments to the largest and wealthiest 10 percent of farm operations and landlords. The top-heavy support for the biggest operations puts smaller family farms at a serious disadvantage and works against a more diverse and resilient food production system that could stand up against wild swings in weather or global markets – and provide Americans with a healthier food supply.

Of course, Democratic members of Congress have historically been subsidy recipients too, notably former House Agriculture Committee ranking member Charles Stenholm of Texas and former Senate Agriculture Chairwoman Blanche Lincoln of Arkansas.

Nor is the phenomenon of lawmakers receiving farm subsidies limited to the federal level. Recent media reports have shown that direct payments are even more common in state legislatures in Wyoming, Wisconsin, Montana, Idaho and South Dakota.

At EWG, we believe that farmers deserve a reasonable safety net to protect against damage from drought, storms and fickle markets. But the American public’s investment portfolio in agriculture needs to change. It’s indefensible to provide subsidies to well-off farmers and landowners, especially in the face of a booming farm economy and a federal budget squeeze. Meanwhile, farmers seeking modest federal support to protect water, land and wildlife are being turned away for lack of funds.

We’re also committed advocates for government transparency, and it’s deeply disturbing that the public’s ability to see who gets what from the federal farm subsidy system has been curtailed by the Obama administration. Under the Bush administration, the rules allowed the public to see through shell corporations and paper entities to identify the part owners of subsidized farms and show where the money ended up. The transparency pertained to lawmakers as well. For this analysis EWG was forced to resort to harvesting data from members’ disclosure forms. That was an arduous but ultimately worthwhile task when advocating for greater accountability and transparency, and it didn’t use to be necessary.

Some Congress members (or their families) collecting federal farm subsidies are major players in the annual farm subsidy drama, others have only bit parts in terms of the amount of subsidies they receive. Overall, the distribution of subsidies among members of Congress reflects the highly distorted distribution of farm subsidies among farmers and landlords in the United States – between 1995 and 2009, 10 percent of subsidy recipients collected 74 percent of all subsidies.

The current salary for rank-and-file members of the House and Senate is $174,000 per year, and members enjoy robust health benefits. But whether major or bit players, members of Congress who receive farm subsidies are part of a system that cries out for reform and poses stark choices between helping wealthy landowners or doing right by struggling farm and urban families and the environment.

Member of Congress who received big or small checks from the federal government include:

US HOUSE OF REPRESENTATIVES (in alphabetical order)

Rep. Robert Aderholt (R-Ala.)

Aderholt’s wife, Caroline Aderholt, is a 6.3% owner of McDonald Farms, which received a total of $3,059,878 in federal farm subsidies between 1995 and 2009.  Additionally she received $338 directly from USDA in 2009.

EWG’s estimate of farm subsidies to Caroline Aderholt, using the percentage share information received by USDA, is $191,580.

Rep. Leonard Boswell (D-Iowa)

Boswell is listed as directly receiving a total of $16,235 in subsidies between 2001 and 2008.

Rep. John Campbell (R-Calif.)

Campbell is listed as a 1.5 percent owner of the Campbell/McNee Family Farm LLC, which received a total of $10,364 in federal farm subsidies between 2007 and 2009.

EWG’s estimate of the farm subsidy benefits Campbell received, based on the percentage share information submitted to USDA, is a total of $155 between 2007 and 2009.

Rep. Jim Costa (D-Calif.)

Costa is listed as a 50 percent owner of Lena E Costa Living Trust, which received $2,494 in federal farm subsidies.

EWG’s estimate of farm subsidy benefits Costa received, based on the percentage share information submitted to USDA, is a total of $1,247 between 2006 and 2007.

Rep. Blake Farenthold (R-Texas)

Farenthold received a total of $1,205 in farm subsidies directly from USDA between 1999 and 2005.

Rep. Stephen Fincher (R-Tenn.)

Fincher is listed as directly receiving a total of $114,519 from USDA between 1995 and 2009. Fincher’s farm, Stephen & Lynn Fincher Farms, is also listed in the EWG database as receiving a total of $3,254,324 between 1999 and 2009. Fincher and his wife Lynn are each 50 percent partners in that farm.

EWG’s estimate of the farm subsidy benefits Fincher and his wife received totaled $3,368,843 between 1995 and 2009.

Rep. Vicky Hartzler (R-Mo.)

Hartzler is listed in the EWG Farm Subsidy Database, but no subsidies were directly paid to her. Her husband, Lowell Hartzler, however, is listed as a 98 percent owner of Hartzler Farms, which received a total of $774,489 in farm subsidies between 1995 and 2009. His ownership percentage rose from 53 percent in the years up to 2005 to 98 percent in 2006.

EWG’s estimate of the farm subsidy benefits Lowell Hartzler received, based on the percentage share information (assumed to be 53 percent prior to 2006) supplied to USDA, totaled $469,292 between 1995 and 2009.

Rep. Rush Holt (D-NJ)

Holt is listed as a 10.5 percent owner of Froelich Land Trust No. 1, which received at total of $33,021 in farm subsidies between 1995 and 2008. Holt’s wife, Margaret Lancefield, is listed as a 25 percent owner of Lancefield Farm, which received a total of $23,478 in subsidies between 1996 and 2009.

EWG’s estimate of the farm subsidy benefits Holt received, using the percentage share information provided to USDA, is a total of $9,337 between 1995 and 2009.

Rep. Timothy Huelskamp (R-Kansas)

Huelskamp is listed as directly receiving $258 in 2002.

Rep. John Kline (R-Minn.)

Kline’s wife, Vicky Sheldon Kline, is listed as a 20 percent owner of Sheldon Family Farms LP, which received a total of $23,667 between 2000 and 2009.

EWG’s estimate of the farm subsidy benefits Ms. Klein received, based on the percentage share information supplied to USDA, is a total of $4,733 between 2000 and 2009.

Rep. Tom Latham (R-Iowa)

Latham is listed as part owner of four entities: 33 percent owner of Latham Seed Co., which received a total of $448,925 in farm subsidies between 1995 and 2003; 25 percent owner in Latham Hospital Farm, which received a total of $76,612 between 1995 and 2001; 25 percent owner in Latham Kanawha Farm, which received a total of $15,648 between 1995 and 2001; and 33 percent owner in DTB Farms LLC, which received a total of $432,017 between 2003 and 2008.

EWG’s estimate of farm subsidy benefits Latham received, based on the percentage share information submitted to USDA, is a total of $313,776 between 1995 and 2008.

Rep. Cynthia Lummis (R-Wyo.)

Lummis is listed as a 31.33 percent owner of Lummis Livestock, which received a total of $47,093 in farm subsidies in between 1996 and 2002. Lummis listed her ownership of Lummis Livestock in her 2009 financial disclosure form.

EWG’s estimate of the farm subsidy benefits Lummis received, based on the percentage share information submitted to USDA, is a total of $14,289 between 1996 and 2002.

Rep. Randy Neugebauer (R-Texas)

Neugebauer is involved in two business entities. He owns 50 percent of Lubbock Land Company Five LTD, which received a total of $3,369 in farm subsidies between 1998 and 1999. He also owns 50 percent of Lubbock Land Company Two LTD, which received a total of $4,608 in farm subsidies in between 1998 and 1999. Neugebauer’s financial disclosure forms for 2009 do not list either company.

EWG’s estimate of farm subsidy benefits Neugubauer received, based on the percentage share information submitted to USDA, is a total of $3,989 between 1998 and 1999.

Rep. Kristi Noem (R-S.D.)

Noem is listed as having a 13.5 percent share in Racota Valley Ranch between 2000 and 2001 and a 16.9 percent share between 2002 and 2008. Racota Valley Ranch received a total of $3,058,152 in farm subsides between 1995 and 2008. Noem’s 2009 financial disclosure form listed her as a partner in Racota Valley Ranch.

EWG’s estimate of farm subsidy benefits Noem received, based on the percentage share information submitted to USDA, is $443,748.

Rep. Collin Peterson (D-Minn.)

Peterson is listed as receiving a total of $828 between 2005 and 2009.

Rep. Dennis Rehberg (R-Mont.)

Rehberg received a total of $7,971 directly from USDA between 1995 and 2002. Rehburg’s wife, Jan Rehberg, also received $51 directly from USDA in 2008. Jan Rehberg also has ownership in two entities that received payments. She has a 33 percent stake in Lenhardt Property LP, which received a total of $517 between 2006 and 2009.  She also has a 5.6 percent stake in Teigen Land and Livestock Company, which received a total of $31,890 between 2002 and 2003.

EWG’s estimate of farm subsidy benefits Rehberg and his wife received, based on the percentage share information provided to USDA, is a total of  $9,980 between 1995 and 2009.

Rep. Marlin Stutzman (R-Ind.)

Stutzman is listed as directly receiving a total of $179,370 in farm subsidies between 1997 and 2009.

Rep. Mac Thornberry (R-Texas)

Thornberry listed as William M. Thornberry, directly received a total of $4,306 in farm subsidies between 1995 and 1999. Thornberry is also a one-third owner of Thornberry Brothers, which received a total of $65,326 in farm subsidies between 1995 and 2009. His financial disclosure form in 2009 lists him as an owner in Thornberry Brothers Cattle.

EWG’s estimate of the farm subsidy benefits Thornberry received, based on the percentage share information provided to USDA, is a total of $26,081 between 1995 and 2009.

 

US SENATE (in alphabetical order)

Sen. Michael Bennet (D-Colo.)

Bennet’s wife, Susan Daggett, is listed in his 2010 financial disclosure forms as 5.5 percent owner of Daggett Farms LP and LMD Farms LP. Daggett Farms LP received a total of $258,916 in farm subsidies between 1995 and 2008. LMD Farms LP received a total of $102,291 between 2000 and 2009.

EWG’s estimate of farm subsidy benefits Daggett received, based on the percentage share information provided to USDA, is a total of $19,866 between 1995 and 2009.

Sen. Chuck Grassley (R-Iowa)

Grassley is listed as directly receiving a total of $263,635 in federal farm subsidies between 1995 and 2009.

Sen. Richard Lugar (R-Ind.)

Lugar is listed as a 9.39 percent owner of Lugar Stock Farm. His wife, Charlene Smeltzer Lugar, is listed as a 7.42 percent owner in Lugar Stock Farm. Lugar Stock Farm received a total of $158,892 in farm subsidies in between 1995 and 2009.

EWG’s estimate of the farm subsidy benefits Lugar and his wife received totals $26,710 between 1995 and 2009

Sen. Jon Tester (D-Mont.)

Tester received a total of $159,549 directly from USDA between 1995 and 2009. Testers’ wife, Sharla, is listed as a 50 percent owner of T-Bone Farms – Tester is listed as owning the other 50 percent.  T-Bone farms received a total of $282,754 in federal farm subsidies between 1995 and 2009.

EWG’s estimate of the farm subsidy benefits Tester and his wife received, based on percentage share information provided to USDA, is a total of $442,303 between 1995 and 2009.

Sen. Orrin Hatch (R-Utah)

EWG’S estimate of the farm subsidy benefits Hatch and his wife received, based on the share information provided to USDA regarding Ms. Hatch’s share of Edries N Hansen Properties LLC, is a total of $909 between 2008 and 2009.

Although Rep. Michelle Bachmann (R-Minn.) was the subject of considerable publicity in 2010 over her family’s farm subsidy payments, she is not in this list since she has not received direct payments from USDA. Her late father-in-law, Paul Bachmann, received $259,332 in subsidies between1995 and 2008. Bachmann’s financial disclosure form lists an interest in Bachmann Family Farm LP, receiving subsidy payments income in the $15,001-$50,000 range in 2009, but for unknown reasons, Bachmann Family Farm LP does not appear in the EWG Farm Subsidy Database. If a person is a part owner in a farm, and that farm receives federal subsidies, USDA indicates that that person is a beneficiary of federal farm programs.

  • Diane Beere

    This is great coverage on farm subsidies. I look to the time the inflated subsidies to rich land owners and big Ag are left out by Congress. Instead fund the clean air and water Act.

  • Harry E. Bennett

    Rep. Tim Huelskamp farms with his brother in Meade County Kansas. His brother is one of the largest recipients of farm subsidies in Meade County. Mr. Huelskamp does this to shield his libertarian stand on most issues.

  • Chris Piekarz

    Eye-opening article. I would love to read more on how the subsidies break down by company. In particular, I was startled to see how much somebody like McDonalds Corp pulls in.

  • Derek

    Deficit, smecifit, as Tea partiers are partying hardy for the billions of subsidies for coal, oil and rich agricultural livestock, feedstock and cotton industries. Congress needs to end that $160~$200 billion over 10 years to rich farming conglomerates. These corporations earn billions without taxpayer subsidies and lavish those earnings on their households and investors at taxpayer expense.

    Recipients of Total USDA Subsidies to farms in United States totaled $16,349,000,000 in 2009;
    http://farm.ewg.org/top_recips.php?fips=00000&progcode=total&page=0&yr=2009

    Even Tea “oil and coal” party women Michelle Bachmann’s family farm received $251,973 in federal subsidies between 1995 and 2006. End the farce and stop wasting my tax dollars on wealthy farming corporations.

  • Jeanette Bajorek

    As usual, a great job by EWG. I would send money but I am spending every spare dime on the fight to remove fluoride from my drinking water. Considering our recent gift from Japan of radioactive iodine, our own contribution to iodine deficiency through water fluoridation is ugly confirmation that in contrast to Japan, we have been purposely poisoning our population, thus causing diseased thyroids throughout the land. I am preparing something to send to exec.elites everywhere to remind them of that.
    Thanks for your steady, brilliant drumbeat against the bad guys; they can’t always win – there is still some good here -

  • Elizabeth

    While all of this might be true, I can no longer take EWG at its word when it says that it is a non-partisan organization. For a donation I made to them, it showed up as Democracy in Action, a PROGRESSIVE LIBERAL organization. That is where their mission lies and I am sorry that I did not see it sooner. I do believe that both parties are to blame for our current mess but to see this blog post just makes it clear whose side EWG is on. They would be wise to realize there are many conservatives who also wish to see our food supply safe and open to small farmers and believe in the organic/local movement. By making this a partisan issue, they will lose much support.

  • Robert C. Herzfeld

    Ag. subsidies to anyone is outrageous, particularly congressmen and women—and senators.

  • Claire Rupert

    Isn’t it about time we insist that elected officials give up some things the rest of us pay for…like better healthcare and retirement benefits for life, government subsidies,travel expenses that don’t always seem to translate to the business of governing or representing their constituents. It is criminal that those who need help the most, including family farmers, have to sacrifice more while truly wealthy individuals and corporations can continue to get all the breaks. Our “democracy” is really a misnomer – we are a plutocracy through and through.

  • Janet Staackmann

    Thank you, EWG! I agree with all you do and also with Jeanette about the fluoride. And I want to fight to ban MSG & High Fructose corn syrup, artificial colors, toxins in make-up and cleaning products, and on and on. Why can’t or rather won’t our government protect us? I know – Greed. I pray it ends and completely turns around for us and our children and grandchildren so that we will no longer have to suffer from the diseases that they cause.

  • Angela

    I found EWG Fall 2010 in grad school at California State University, Northridge and wrote a paper on your efforts. I must say, your message(s) has made a significant impact on me. You give a place to turn for knowledge and most importantly a community in which all can take action to protect human life and the environment. Thank you for your hard work, making these issues salient and picking up the battle when so many reel in despair or are without resources necessary to act on their own. Thank you for giving hope by demonstrating that effort makes a difference with a measurable impact. Most of all, thank you for caring when so many don’t.

    Jeanette, I appreciate your upbeat and positive attitude!! It is a daunting task to continue to believe in the good of men at a time when man seems irreparably lost. Since the beginning, fighting the good fight has been man’s greatest challenge. Today, it appears that many, if not most, have decided “if you can’t beat ‘em, join ‘em.” Your message lifted my spirits and inspired me with hope. Greed is the affliction, but apathy cripples the victim and creates the perfect environment to cultivate this insidious disease.

  • LaVerne Noasconi

    No wonder farmers are exempt from collective bargaining

  • Steven Lehar

    Lets hope that instead of pointing fingers across the aisle to justify their own sacred cows, the Dems and Repubs start bartering to give up their cow in return for the other side giving up theirs! Yeah, right! Hold your nose, not your breath!

  • Doris Gosnell

    Excellent program on Good Morning America. Rep Fincher was camera shy! Farmers have been coddled and controlled since 1930, long after the end of economic conditions used to justify them. Hopefully, Rep.Stutzman will be heard. Redistribution of wealth in this manner must be ended.

  • Bob Priester

    Thanks for the incite and useful information. It seems one reader wants to disregard the value of the facts just because you, (in her eyes), lean a little to the left. I’m sure she would have presented the same information in a more balanced manner, (wink).

    In 1969 I returned from serving in Vietnam. I was ashamed and disgusted with the selfishness in Washington and at our state level. Nothing has changed. These people should be made to go on nation television and apologize for their greed, selfishness, deceitfulness and lack of character. But then the laws are always applied different to those in congress where common decency is a foreign word.

  • splined

    Direct payments to farmers are only part of the scam. The granting of the largest crop insurance investment guarantees, insurance subsidies, and routine profit guarantees to the largest farmers is just as absurd and eggregious. As crop prices have increased Congress has made sure that many farmers have their investment insurance and routine profit guarantees increased proportionately. If someone wants to farm 1/2 of the county Congress is irresposible in providing the financial security blanket that would make this operation fly. Do we really need Congress turbocharging land values with greater and greater investment guarantees?

  • splined

    So called reasonable safety nets have morphed into multimillion dollar farm investment guarantees and farm profit guarantees. Farmers that do not have to budget for production and marketing risks now have the ability to bid up land prices to record levels. Federal crop insurance along with direct payments and higher crop prices are now providing the financial fuel that is turbocharging land values. The havenots have been relegated to having to compete with those who Congress has determined deserve billions in direct payments, insurance subsidies, and other financial security blankets. Yet Congress continues to be determined to spend billions “to save family farmers”.

  • splined

    When farmers are given a profit guarantee certain reactions follow. Read about it athttp://www.agweek.com/event/article/id/17593/publisher_ID/80

  • Scott Allen

    on resonse to that article- it looks like the rma backed out of the policy. grip is no longer available.so splined are you saying that the rma did right or wrong? you are confusing me. in my area hardly any farms have more than just a cat policy because thepremium is to high. i farm 3200 acres and if i had insured with an eighty percent yield policy my premium would have been over $175000.00 dollars. i just can’t afford the insurance.

  • Ed.

    Ifind it interesting bachmann farms received $250,000 in farm subidies and she is the one calling for cuts for everyone else .

  • splined

    In response Scott, Congress has been doing the wrong thing in allowing rma to offer the policies that they have been offering. Just because one farmer wants to assume an absurd amount of risk doesn’t mean the government should shoulder this burden. I feel all farmers are equally deserving of comparably valued financial security blankets as well as comparably valued crop insurance subsidies if the government chooses to offer these type of income insuring blankets. When the government chooses to target the largest farmers with income policies that over the long term guarantee overwhelming profitability to those with the greatest probability of the greatest profits there is no room for smaller or beginning farmers! This financial discrimination guarantees the continued demise of small town rural America. Hope this explanation clears up your confusion.

  • Scott Allen

    clear as mud

  • splined

    Small and beginning farmers do not have any trouble understanding the overwhelmingly competitive financial edge the government is giving their larger and more profitable competitors with federal crop insurance. Other larger farmers ignore the facts because they want to secure their place at the federal trough.

  • gary ommen

    Ag subsidies should be eliminated. Ag. doesn’t have more risk than other business just different. We can no longer afford to make them profitable. Look what is happing to Japans ecomy

  • Nancy Beadle

    @Derek. You need to read the article again. Michelle Bachman’s father-in-law got the money, not her. The farm she owns an interest in got a much, much smaller amount.