Currently browsing posts about: USDA

I’ve been writing about the forced move of the USDA’s Economic Research Service (ERS) from Washington DC to Kansas City for quite some time now, most recently here.

I relied heavily on ERS analyses for my work.  The stated purpose of the move was to get the economists closer to farmers, but it was obvious from the start that the real reason was to destroy the agency’s ability to produce reports with results inconvenient for the Trump Administration.

Now others are weighing in, not least the USDA Inspector General.   Its recent report on USDA’s Research Integrity and Capacity, which notes losses in staffing and slower output. the IG says:

When asked about the reason for the decreased number of economic research reports publications, an ERS official noted that every division within ERS had sustained staffing losses since the agency’s relocation from Washington, D.C., to Kansas City, Missouri. The official acknowledged that the decrease in the publication of economic research reports between FY 2018 and FY 2020 was the result of the staffing reduction, but did not know what the future impact of the staffing reduction would be. Additionally, we were unable to determine what the future impact of the staffing losses would be.

On staffing levels and experience:

• From 2018 through 2020, the number of economists with 10 or more years of Federal service fell from 98 to 53. There was an increase in economists with less than 1 year of Federal service from none to 21 over that same time.  [This means a tremendous loss of experienced economists; the new ones are just starting out]
• From 2018 through 2020, the number of GS-14 [senior]economists at ERS declined from 42 to 21. Similarly, during the same time period, the number of GS-13 economists at ERS declined from 45 to 19. Conversely, the number of GS-9 [junior-level] economists showed an increase from four to seven during this timeframe.

Employees with a:

• post-doctoral degree decreased by more than 33 percent,
• doctoral degree decreased by more than 38 percent,
• master’s or professional degree decreased by more than 20 percent, and
• bachelor’s degree decreased by more than 30 percent.

The American Economic Association also weighed in on this: Necessary Improvement in the U.S. Statistical Infrastructure: A Report to Inform the Biden-Harris Transition

9. The Department of Agriculture must restore the viability of the Economic Research Service (ERS)
ERS is one of the 13 official statistical agencies of the United States. Located since its origination in 1961 in Washington, D.C near federal agricultural policy makers, a majority of its staff positions
were relocated to Kansas City in 2018. Following the relocation, roughly 75-percent of the professional staff resigned or retired. More than two years after the relocation was announced, ERS
has severe staff shortages, particularly in its ranks of senior analysts and management, and is facing substantial staff recruitment challenges. As a consequence, the agency’s statistical programs have
been abridged and federal and state governments are suffering from inadequate agricultural statistics generally, but especially statistics to inform rural development, food assistance and
security, and agriculturally related natural resource conservation policies. While we do not have a specific recommendation for how the Department of Agriculture ameliorates these problems, we
believe it needs to act swiftly and decisively to assess and resolve the challenges it faces as a result of ERS’ decimation.

At issue, of course, is what to do about this now.  Move it back to DC and recruit back all those experts?  It’s worth a try!

The USDA publishes estimates of how much foodborne illness costs Americans.  It does this for 15 pathogens, one at a time:

The Cost Estimates of Foodborne Illnesses data product provides detailed data about the costs of major foodborne illnesses in the United States, updating and extending previous ERS research. This data set includes the following:

• Detailed identification of specific disease outcomes for foodborne infections caused by 15 major pathogens in the United States
• Associated outpatient and inpatient expenditures on medical care
• Associated lost wages
• Estimates of individuals’ willingness to pay to reduce mortality resulting from these foodborne illnesses acquired in the United States.

If you click on the links below, you get an Excel spreadsheet.

I clicked on Salmonella (non-typhoidal); the estimate for its costs in 2018 is basically $4 billion ($4, 142,179.161).

It would be really nice if USDA’s Economic Research Service would add these all up for us, but it’s short staffed (remember the forced move of the agency to Kansas City that I complained about so much last year.

But foodborne illness costs a lot, in health care costs, lost work and productivity, and all the other bad things that happen when people get sick.

It’s best to do everything possible to prevent foodborne illness before it occurs.

I am all for making sure that farmers make a decent living but most agricultural subsidies go to Big Ag—the producers of corn and soybeans fed mainly to animals or, in the case of corn, as ethanol for car fuel.

These taxpayer-funded payments are enormous and represent increasing percentages of the income of Big Ag.

For example, see this chart from the Wall Street Journal.

As part of the Trump administration’s effort to get votes from farmers and ranchers, it pledged $37.2 billion to them in the spring and summer with an addition $14 billion in September.

Why is this about the election?  The Washington Post says “Trump’s farmer bailout gave $21 billion to red counties and $2.1 billion to blue ones.”

At a campaign rally in Wisconsin last week, President Trump didn’t mince words about how much his administration had done to bolster the economic fortunes of farmers…I gave $28 billion to the farmers, many of them right here, $28 billion, $12 billion and $16 billion, two years”… That redistribution was facilitated through the Agriculture Department’s Market Facilitation Program. According to data obtained by the Environmental Working Group through a Freedom of Information Act request, that program disbursed more than $23 billion in the 2018 and 2019 program years.

From a report from Agricultural Economic Insights:  USDA’s direct payments to Big Ag will equal 36% of net farm income, up from 22% in 2018=2019.  These payments used to account for around 10% of net farm income.

Check out its map:

Finally, it’s good to review the big picture of what happened to food and farming under Trump.  Civil Eats has an excellent review by Lisa Held.

To offset the effects of the tariffs, in 2018, USDA began distributing cash payments through the Commodity Credit Corporation at unprecedented levels, with no appropriations or oversight from Congress. In 2020, as the pandemic hit the farm economy, it added another source of government payments via the Coronavirus Food Assistance Program (CFAP). Overall, Trump’s USDA has handed out more government dollars to farmers than any administration prior. In both 2019 and 2020, more than 40 percent of farm incomes came from federal assistance—the only thing keeping farm incomes afloat.

Those payments have been controversial because they have almost exclusively benefited the largest farms and agriculture companies. Two-thirds of the trade aid payments went to agriculture producers in the top 10 percent, including corporations, such as the $67 million paid to JBS USA, a subsidiary of the Brazilian-owned meatpacking giant. Small farms, especially diversified operations and those run by socially disadvantaged Black, Indigenous, and People of Color (BIPOC) farmers, have largely been unable to access CFAP assistance.

All of this leaves plenty of room for improvement.

President-elect Biden: get to work!

The USDA destroyed the ability of its Economic Research Service (ERS) to do investigations that might prove inconvenient for this administration (see my most recent post on this topic), but this agency is still producing reports on specific commodities.

Here are the latest dairy reports.  You have to be pretty nerdy to delve into these Excel spreadsheets but if you do, you will get a good idea of what ERS staff are doing these days as well as learn details about dairy production.  TMI?  Maybe.

Some parts of government are still functioning the way they are supposed to.

The U.S. Office of the Special Counsel (OSC) says USDA Secretary Sonny Perdue has violated the Hatch Act and has to repay the US Treasury.

In letters to Citizens for Responsibility and Ethics and to Representative Marcia Fudge,  the OSC says

Secretary Sonny Perdue violated the Hatch Act on August 24, 2020, when he spoke in his official capacity at an event in Mills River, North Carolina (the “August 24 event”)…The event generally related to USDA’s Farmers to Families Food Box Program…Because he was on taxpayer-funded travel when he engaged in the political activity at issue, the U.S. Treasury must be reimbursed for the costs associated with his political activity.  Provided that immediate corrective action is taken and the U.S. Treasury is reimbursed for such costs, OSC will decline to pursue disciplinary action and instead consider this file closed with the issuance of the cure letter.

As the letter explains,

The Hatch Act restricts certain political activities of federal executive branch employees, except for the President and the Vice President.  As the Secretary of Agriculture,
Secretary Perdue is covered by the Hatch Act and prohibited from, among other things, using his official authority or influence for the purpose of interfering with or affecting the result of an election.  Under this provision, Secretary Perdue may not use his official title while engaging in political activity or his official position to advance or oppose candidates for partisan political office.

In his speech at the event, Perdue congratulated President Trump for authorizing an additional billion dollars to the Farmers to Families Food Box Program

you just authorized another billion dollars for the hungry people of this country and to keep our farmers there. And we’ve never seen an outpouring of compassion like that for people who matter, because people matter to you. And that’s what’s important to me. And that’s what’s going to continue to happen—four more years—if America gets out and votes for this man, Donald J. Trump.

This is a particularly clear violation of the Hatch Act.  The OSC is right to call Perdue on it and insist that he repay taxpayers.

This is also yet another example of how the Farmers to Families food box program, about which I have written repeatedly, is more about politics than feeding the hungry.

The OSC investigation resulted from a complaint from Representative Fudge and several colleagues in Congress.   It’s also good to see them doing their job.

Readers have written me to point out that my posts rarely cover good news, and that they badly need to hear some.

Point taken: I devote this week’s blog to good news items.

Let’s start with Friday’s announcement that the USDA will extend universal school meals through June 30, 2021 (you can read the entire announcement here).

Is this an election-year ploy?  Maybe, but it’s the first thing Trump’s USDA has done that I think is worth doing.

It must have happened as a result of strong advocacy pressure.  I say this because, as The Counter’s Jessica Fu reported in August, the USDA was determined not to extend free meals to school children, arguing that it did not have the authority to do so.

“While we want to provide as much flexibility as local school districts need during this pandemic, the scope of this request is beyond what USDA currently has the authority to implement and would be closer to a universal school meals program which Congress has not authorized or funded,” Secretary of Agriculture Sonny Perdue wrote in a letter last Thursday explaining the decision.

But a week later, the USDA did extend the universal meals program through the end of December this year.

Now it has extended that extension through the end of this school year.

Yes!

This means, as the announcement says, USDA will:

• Allow…meals to be served in all areas and at no cost;
• Permit meals to be served outside of the typically required group settings and meal times;
• Waive meal pattern requirements, as necessary; and
• Allow parents and guardians to pick-up meals for their children.

Universal school meals:

• Ensure food justice for children
• Make sure all children are fed
• Avoid stigma
• Avoid expensive and cumbersome exclusionary paperwork

So this is good news, but there’s more work yet to do.

• Make sure those meals are healthy and do adhere to nutrition standards.
• Make universal school meals permanent.

My go-to reference on this topic:

I cannot believe there is anything further to say about the Farmers to Families food boxes, the $4 billion USDA program that pays distributors to pick up dairy, meat, and produce, put it in boxes, and deliver the boxes to food banks, which then hand them out to people who need food.  My most recent post on the inclusion of a personal letter from President Trump in the boxes is here.

The USDA now says it has distributed 100 million of these boxes.

Politico’s Helena Bottemiller Evich reports  that the USDA now requires the private companies that collect, pack, and deliver the boxes “to also stuff the Trump letters into the package — an expansion of the controversial letter policy with just…days until the presidential election.”

The Counter’s Jessica Fu (to whom I owe an apology for spelling her name incorrectly the last time I quoted her) writes that “Religious groups distributing Covid hunger-relief boxes are praying with recipients, taping Bible verses onto flaps, and soliciting donations. Some of these practices may violate federal regulations.”

The Hunger Task Force says that the program is discriminatory: “Wisconsin has been underrepresented in all rounds of the program while Wisconsin’s hungry line up by the carload for assistance that has now been completely severed.”

New York legislators are also complaining.  They wrote a letter to USDA Secretary Sonny Perdue:

in the transition between the CFAP vendors selected for rounds two and three, miscommunication from USDA has left many food pantries in New York City suddenly without food, causing upheaval in the lives of those families who were relying on their local pantries for meals.  We understand that the new vendors selected for round three of this program were required to specify the counties or boroughs to which they would provide food. However, this has forced many nonprofits and food pantries who had relationships with vendors no longer serving their county or borough to scramble to find new partnerships, with no guidance from USDA, no overlap in service
provision, and nowhere to turn for help.

On the saga goes.  It would have made so much more sense—financially, logistically, and humanely—for the USDA to strengthen SNAP enrollments and benefits.  Some of this is happening anyway, but the long history of food banks tells us that they can never meet needs on an ongoing basis.  SNAP, imperfect as it is, still is a demonstrably better means of relieving food insecurity.

I’m trying to figure out how much money—over and above what’s appropriated through the farm bill—is going to Big Ag.  I wish someone would add it up for me.

Here’s what I know so far:

The USDA has given producers more than $10 billion in Coronavirus assistance.  This includes nearly $1 billion to Iowa farmers.  Lesser amounts went to producers in Nebraska, California, Texas, Minnesota and Wisconsin.  Overall, about half went to livestock producers.

According to the Environmental Working Group,

The largest and wealthiest U.S. farm businesses received the biggest share of almost $33 billion in payments from two subsidy programs – one created by the Trump administration to respond to the president’s trade war and the other by Congress in response to the coronavirus pandemic.  The Market Facilitation Program, or MFP, was intended to offset the perceived damage done by the administration’s trade war, which reduced many farmers’ access to lucrative Chinese markets. Payments for the 2018 and 2019 crop years were just over $23 billion – more than $8.5 billion for 2018 and $14.5 billion for 2019.

Chuck Abbott of the Food and Environment Reporting Network (FERN) says:

With its new offer of $14 billion in coronavirus relief, the Trump administration could spend $50 billion — quadruple the cost of the auto industry bailout — in less than three years to buffer the impact of trade war and pandemic on agriculture. Farm groups welcomed the second round of coronavirus assistance while critics said it was “old-fashioned vote-buying” ahead of the Nov. 3 presidential election.

And the largesse does not stop.  The House has proposed a $120 billion rescue fund that includes relief programs for livestock and dairy farmers and food processors, such as “$1.25 billion to assist contract growers of poultry and livestock growers who face revenue losses due to reduced placements related to COVID-19”

This money goes to Big Ag—Soybeans, Corn, Meat—mainly in mid-West Trump country.

What about food for people?  Well, we have the $4 billion Farmers to Families food boxes, although how much of that goes to farmers as opposed to distributors is unknown.