Reps. Kind, Blumenauer, Petri, DeLauro and Sen. Flake: Outrageous Farm Payments to Billionaires Highlight Urgent Need to Reform Ag Policy

Press Release

U.S. Rep. Ron Kind (D-WI), U.S. Sen. Jeff Flake (R-AZ), U.S. Rep. Earl Blumenauer (D-OR), U.S. Rep. Tom Petri (R-WI) and U.S. Rep. Rosa DeLauro (D-CT) continued to call for major reforms to current farm subsidy policy in the wake of a report released today that details a long list of billionaires who are profiting from taxpayer-funded farm subsidies.

The report, released by the research and advocacy organization Environmental Working Group (EWG), found that the federal government paid $11.3 million in taxpayer-funded subsidies to 50 billionaires (or businesses in which they have an ownership stake) between 1995 and 2012. EWG compiled the list by matching their Farm Subsidy Database with the Forbes 400 list of the richest Americans. According to the list, the billionaires who received these farm subsidies have a collective net worth estimated to be $316 billion.

"This perfectly illustrates just how out of control our current agricultural subsidy policies are. The EWG report is further proof that our agriculture programs just aren't working and need immediate reform. If the late Sen. Bill Proxmire were still handing out his Golden Fleece Awards, this would be a first-place winner for sure," said Rep. Kind. "This is why I've worked so hard to reform these subsidy programs. They are not responsible to the American taxpayer nor are they helpful to family farmers across the country."

"This is unfortunately only the latest report showing that multi-billion dollar agriculture subsidy programs are funneling taxpayer dollars into the pockets of millionaires and billionaires," said Senator Flake. "As the House and Senate continue farm bill negotiations, this information should serve as the nail in the coffin of wasteful direct payments, outrageous crop insurance subsidies, and other wasteful agricultural programs that we simply cannot afford to sustain in this time of soaring debt and deficits."

"This report by EWG revealing the number of billionaires who are receiving agricultural subsidies should be eye opening for everyone in America," said Rep. Blumenauer. "But, while it's shocking, it's just the tip of the iceberg in a Farm Bill that lavishes unnecessary subsidies and handouts on farmers who don't need them and who are better at farming the system than the land. Any report coming out of the conference committee that is going to claim to be fiscally responsible has to include serious reforms, including strict means testing, for all farm payment and crop insurance programs."

"This report highlights the need to close these loopholes by having a means testing component," said Rep. Petri. "We can't really blame billionaires for taking advantage of these subsidies because the current rules allow it. But giving subsidies to those who don't need it costs the taxpayers millions each year. So, I think we need to take a good look at the program to make sure small, family farmers who truly need the assistance have that safety net and those who don't need the assistance are no longer eligible."

"These findings are absolutely outrageous and further evidence that the indefensible practice of subsidizing millionaires and billionaires needs to end," Rep. DeLauro said. "Using taxpayer dollars to pad the coffers of the wealthy is reprehensible. I call on my colleagues negotiating a farm bill to do the right thing and end subsidies for America's wealthiest families and agribusinesses, not take food away from the poor and most vulnerable."

EWG states that the total amount of farm subsidies sent to the billionaires is likely to be much higher because many of them also received crop insurance subsidies; the names of the recipients of those payments are not disclosed by law.

A new farm bill is currently before a bipartisan, bicameral conference committee. While crop insurance premium subsidies are not subject to means testing, payment limits or conservation requirements, proposed changes in both the House and Senate versions of the bill could give millions more in premium subsidies to the same billionaires who are already collecting them.