NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING

  • Latest News
  • Pitch a Story
  • Work with a Journalist
  • Join the Blog Squad
  • Afghanistan
  • Africa
  • Asia
  • Baltimore
  • Canada
  • Egypt
  • Europe
  • Latin America
  • Middle East
  • Russia
  • Economy
  • Environment
  • Health Care
  • Military
  • Occupy
  • Organize This
  • Reality Asserts Itself
  • US Politics
  • Congress Cuts Food Stamps by $8 Billion, Expands Corporate Farm Welfare by $7 Billion


    Jason Rano: The vast majority of farm subsidies and crop insurance go to the largest corporate farms. -   October 3, 14
    Members don't see ads. If you are a member, and you're seeing this appeal, click here

    Audio

      Share to Twitter
    Share to Facebook



    TRNN has... made its mark with amazing original reporting on the Middle East and international protest movements. - Caroline Lewis
    Log in and tell us why you support TRNN

    Bio

    Jason Rano joined Environmental Working Group after working in Baltimore city government and on Capitol Hill as a legislative aide to Sen. Frank R. Lautenberg of New Jersey. He represents EWG on Capitol Hill and before executive agencies and state and local governments on chemicals policy, including Toxic Substances Control Act and personal care products, bottled water, agriculture and other issues. Jason holds an undergraduate degree from American University and a Masters in Public Policy from Johns Hopkins University. 

    Transcript

    Congress Cuts Food Stamps by $8 Billion, Expands Corporate Farm Welfare 
by $7 BillionJESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore.

    The House and Senate reached an agreement on the farm bill to cut food stamps by $8 billion over the next decade. Conservation programs were also cut, by $4 billion. And while direct subsidies to farmers was cut by $14 billion, taxpayer-subsidized crop insurance for farmers was increased by $7 billion. We should also note that both the Senate and the House's original bills cut food stamps and expanded the crop insurance program. This is the first time in history that Democrats supported cutting food stamps.

    Now joining us to discuss all this is Jason Rano. Jason is the director of government affairs at the Environmental Working Group.

    Thanks for joining us, Jason.

    JASON RANO, DIR. GOVERNMENT AFFAIRS, ENVIRONMENTAL WORKING GROUP: Thank you for having me.

    DESVARIEUX: So, Jason, we know that direct subsidies will be cut by $14 billion, but crop insurance will increase by $7 billion. First off, what is crop insurance? And how does that differ from direct subsidies?

    RANO: Crop insurance is--I like to think of it as similar to car insurance, and the difference being that taxpayers subsidize a lot of farmers' premiums for the crop insurance program. On average, taxpayers subsidize 62 percent of a farmer's premiums. We also subsidize the crop insurance industry to the tune of up to $1.3 billion annually.

    The difference is that direct subsidies, you didn't have to actually be farming; you just had to own a stake in land that was being used. For crop insurance, you actually have to be farming and have to suffer a loss.

    DESVARIEUX: Alright. And according to your organization--I want to get a sense of who is actually receiving these subsidies. You say farmers, but we can get a little bit more specific. Let's take a look at your website here, and let's focus on one of the biggest agricultural producers, California. We can see here that if you take a look, that 91 percent of farms in California did not collect subsidy payment. And that's according to the USDA.

    So does the majority of subsidies go to the largest farms?

    RANO: They do. In California, 10 percent of the farms collected 73 percent of the subsidies. When it comes to crop insurance, in 2011 the top 20 percent of policyholders collected 73 percent of the payments.

    The difference between the programs is, because there is no transparency in the crop insurance program, we don't know who the individuals are that collect crop insurance subsidies. At least in the direct payment program we had a clear understanding of who the farmers and agribusinesses were that were collecting these taxpayer subsidies. The same cannot be said of the crop insurance program.

    DESVARIEUX: Alright. So there seems to be a lack of transparency here.

    But I need to clarify one point, because many of the insurance premiums end up in Wall Street financial firms. Is that right?

    RANO: One of the issues we face is we're not really sure where premiums subsidies go. What we do know is in 2011, 26 people in agribusinesses received at least $1 million in premium subsidies from the taxpayer, and 10,000 received at least $100,000 or more. We also know that we subsidize the crop insurance industry upwards of $1.3 billion annually to sell these crop insurance policies and to administer them. But because there is a lack of transparency, we don't know much about the individuals and agribusinesses receiving these subsidies.

    DESVARIEUX: Alright. Fair enough.

    Let's switch gears a little bit and talk about the other portion of the farm bill, and that's food stamps. Critics of the food stamp program claim there is massive fraud. And House Republicans' original bill, they mandated drug testing. How does fraud in the food stamps program compare with fraud in the crop insurance program?

    RANO: Well, government reports repeatedly show that the SNAP program has one of the lowest fraud rates in the government. One of the issues with crop insurance fraud is we don't really know. There hasn't been an in-depth examination by Congress to look at fraud rates in the crop insurance program.

    We do know that there have been several outlandish cases of crop insurance fraud recently, including one last year in North Carolina with 41 defendants pleading guilty or being found guilty of conspiring to defraud the taxpayers and the government of $100 million through the crop insurance program. But there hasn't been as in-depth an investigation or focus on crop insurance fraud as there has been on perceived or real SNAP fraud.

    DESVARIEUX: What would your organization suggest as an ideal farm bill?

    RANO: Sure. One is a full funding of nutrition assistance to make sure that those in need receive the food that they need. Focus on healthy and local foods. A reformed and strengthened crop insurance that makes sure that those farmers that needed the assistance and the program the most received it, not just the wealthiest farmers and agribusinesses. And strong conservation funding and practices to protect the land for the next generation of farmers.

    DESVARIEUX: Alright. Jason Rano, thank you so much for joining us.

    RANO: Thank you for having me.

    DESVARIEUX: And thank you for joining us on The Real News Network.

    End

    DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


    Comments

    Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

    Comments


    Latest Stories


    Almost Impossible to Indict a Cop
    Obama's Record on Defending Civil and Constitutional Rights Abysmal
    The Real News Town Hall Pt. 3 Should the community control the police?
    We Dehumanize Those We Want to Exploit - Eddie Conway on Reality Asserts Itself (9/10)
    Baltimore Erupts with Protests in Solidarity with Ferguson
    Police Brutality Towards Black People Has Historically Gone Unchecked
    The Real News Town Hall Pt. 2: Should the Community Control the Police?
    "Democracy on Fire": Protestors Respond to Grand Jury's Failure to Indict Mike Brown's Killer
    Hagel Resigns - A Look at His Record
    Is Obama's Immigration Action Too Little, Too Late?
    Baltimore Residents Demand Legislative Action to End Police Impunity
    The Real News Town Hall: Should the Community Control the Police? Pt.1
    Who Is in Charge of Development: The Elite or the Majorities? (2/2)
    Protesting GM Auto Workers Attacked by US Embassy Staff
    The Life and Times of Emory Douglas, Minister of Culture in the Black Panther Party (3/3)
    G-20 Recommits to Lifting Private Sector Activity (2/2)
    Obama Unveils Immigration Plan, But What Will It Change?
    Study Finds Racial Profiling Persists in Toronto Despite Ban
    G-20 Recommits to Lifting Private Sector Activity
    Who Is In Charge of Development: The Elite or the Majorities? (1/2)
    Swedish Court of Appeals Rule to Continue the Detention of Julian Assange
    The Power to Create Money in the Hands of the Banks
    Animal Agriculture: A Neglected Agent of Global Warming?
    Despite Senate Vote on Keystone XL, Tar Sands Oil Will Still Reach the Gulf
    Seattle Begins Police Reforms in Wake of Federal Civil Rights Investigation
    All Eyes on Ferguson as Gov. Nixon Declares State of Emergency Ahead of Grand Jury Decision
    The Life and Times of Emory Douglas, Minister of Culture in the Black Panther Party (2/3)
    G20 Summit Failed to Seriously Address Global Problems
    Who is Behind the Ousting of President Compaore in Burkina Faso?
    Investigation Uncovers "Culture of Impunity" for Chicago Police Department

    RealNewsNetwork.com, Real News Network, Real News, Real News For Real People, IWT are trademarks and service marks of IWT.TV inc. "The Real News" is the flagship show of IWT and Real News Network.

    All original content on this site is copyright of The Real News Network.  Click here for more

    Problems with this site? Please let us know

    Linux VPS Hosting by Star Dot Hosting