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GAO Report Fans Farm Subsidy Fire PDF Print E-mail
Written by Kiki Hubbard   
Thursday, 04 December 2008

Although the Environmental Working Group (EWG) has been publishing farm subsidy data for more than five years, it was only within the last year or two that some of these shocking figures started getting national attention.

For example, many crop subsidies are concentrated in the hands of the largest farm operations. And half of all subsidies have gone to just nine states. EWG's research also found that money was ending up in the pockets of millionaires who didn't farm, like David Letterman (who later said he gave the $8,000 to charity) and retired NBA star Scottie Pippen.

Now a new Government Accountability Office (GAO) investigation provides more evidence of subsidy abuse. The GAO report found that thousands of farmers received subsidies between 2003 and 2006 despite earning more than the $2.5 million gross limit. Nearly $50 million was paid out to ineligible multi-millionaires.

Wisconsin Congressman Ron Kind is calling for more oversight, saying the investigators' findings are a "slap in the face" to American families who are struggling. He and other lawmakers question whether the new cap established in the 2008 Farm Bill will be effectively enforced. Kind says he will introduce legislation aimed at implementing one of the GAO's recommendations, which is for the IRS and USDA to come up with a plan to verify income eligibility and perhaps strengthen penalties on those who abuse the subsidy program.

The subsidy debate won't go away anytime soon, and President-elect Obama even cited the GAO report the other day as an example of wasteful spending. Whether you believe the system is working or needs a major overhaul, no silver bullet solution exists. In the meantime, lawmakers and regulators must ensure an equitable distribution of farm payments. Assistance should be given to farmers who need it, not wealthy landowners who "farm" from their desks in Manhatten.

Sources: EWG, McClatchy Newspapers, Washington Post, Wisconsin Ag Connection

Map image: Environmental Working Group

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