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Zaid Jilani

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How the Crop Insurance Industry Helped Buy a Multi-Billion Dollar Cut to Food Stamps

Posted: 06/26/2012 3:48 pm

Late last week we reported how the U.S. Senate voted to sustain cuts worth billions of dollars from the food stamp program in the name of fiscal austerity while maintaining billions of dollars of subsidies and other price supports for the sugar lobby.

Let's look even deeper into the original 33-66 failed vote to restore $4.5 billion in food stamp funding. The amendment offered by Senator Kirsten Gillibrand (D-NY) to the farm bill that was offered to do this funded the food stamps by cutting "guaranteed profit for crop insurance companies from 14 to 12 percent and by lowering payments for crop insurers from $1.3 billion to $825 million."

Not only was Gillibrand asking the Senate to help a group of individuals without well-connected lobbyists -- the poor who rely on food stamps -- but she was also taking on a powerful interest group: crop insurance companies.

We conducted a review of campaign spending by the crop insurance industry's top political action committee -- the American Association of Crop Insurers PAC (AACIPAC) -- and its lobbyists it has contracted through a Virginia law firm, and found, unfortunately, unsurprising results.

Of the 11 sitting Senators -- four Democrats and seven Republicans -- who received campaign funding from AACIPAC in the 2010 election cycle or the current one, not a single one supported Gillibrand's amendment to restore food stamp funding by cutting guarantees to crop insurers.

Additionally, I searched through Federal Election Committee (FEC) data and found that one of AACI's lobbyists it hired, Michael McLeod, donated $1,260 in 2011 to Senator Ben Nelson (D-NE), one of the Democrats who voted against food stamps and for crop insurers. Nelson is retiring, so it would seem that he does not need campaign funding, but earlier this year he refused to disclose any job negotiations he will be having with lobbying firms -- so perhaps he is building goodwill toward a new career.

Another lobbyist hired by AACI, Laura Phelps, was a minor donor to Senator Mark Warner (D-VA) in 2008, giving $250 according to FEC records. Warner also sided with crop insurers and against food stamp recipients.

In Washington, D.C. money buys access and, sometimes, votes. This can have devastating consequences for America. One columnist in Washington state estimates that the state's 234,000 households receiving food assistance may face cuts of up to $90 each in food stamps -- perhaps owing to the legalized corruption in the U.S. Senate.

 

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Late last week we reported how the U.S. Senate voted to sustain cuts worth billions of dollars from the food stamp program in the name of fiscal austerity while maintaining billions of dollars of subs...
Late last week we reported how the U.S. Senate voted to sustain cuts worth billions of dollars from the food stamp program in the name of fiscal austerity while maintaining billions of dollars of subs...
 
 
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HUFFPOST SUPER USER
lawson 19015
04:11 PM on 06/27/2012
The President should veto this bill if it gets to his desk
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HUFFPOST SUPER USER
lawson 19015
04:08 PM on 06/27/2012
The best Politicans money can buy. More money for the insurance companies and less for the needy. What is happening to this country? These people have no shame. Just line their pockets
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boxofjakk
WE THE PEOPLE
03:58 PM on 06/27/2012
seems to me that the republicans and supreme court have rewrote the declaration of the UNITED STATES to now say we the corporations have united to take over the states
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HUFFPOST SUPER USER
MS Ind
My micro-bio was empty.
12:12 PM on 06/27/2012
Once again, another misleading headline by HuffPo. This didn't result in a cut to food stamps, it simply halted an increase in food stamp spending. Big difference
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HUFFPOST SUPER USER
lawson 19015
04:10 PM on 06/27/2012
You wish that was true. Read the fine print
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HUFFPOST SUPER USER
MS Ind
My micro-bio was empty.
05:06 PM on 06/27/2012
Could you please direct me to the fine print, because I looked and couldn't find it.
HUFFPOST PUNDIT
maxfax
Taa - dah!
11:20 AM on 06/27/2012
Where's the lobby for the poor?
10:47 AM on 06/27/2012
Read what food stamps ACTUALLY buys, and why we can't find out. This crackdown is long overdue.

http://www.washingtontimes.com/news/2012/jun/24/top-secret-what-food-stamps-buy/
HUFFPOST SUPER USER
FloB
09:30 PM on 07/23/2012
Absolutely, besides all the chips, cookies, out of season strawberries, sodas, donuts, bottled water, prepared food, and ready made salads, I have seen six peeled and then brightly dyed Easter eggs for $4.50 and a big red "EBT eligible" sticker on them. The WIC program, I can handle, at least the irresponsible who have babies with no plans for feeding them, have to purchase nutritious food with their vouchers. The EBT card has become a second currency to trade for cigarettes, drugs, alcohol, etc. Why else would schools have to feed kids two and even three free meals a day when their unemployed "Moms" sit at home watching "the shows" on their cable TV and can't manage to get a meal on the table.
10:44 AM on 06/27/2012
You want to see what your tax dollars buy for the poor? This is a Boston Herald article. It should make you mad.

http://www.bostonherald.com/news/columnists/view.bg?articleid=1061141675&srvc=rss
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parlimentMike
Terrorists keep you in fear
12:28 PM on 06/27/2012
What did ADM do with the taxpayer money given them last year? What did Mobil/Exxon do?
01:35 PM on 06/27/2012
And what has that got to do with allowing people to purchase cigarettes with EBT money? Food stamps are the largest expenditure in the Agriculture Department.
10:44 AM on 06/27/2012
1. Where does the Constitution authorize the federal government to subsidize crop insurance?
2. Where does the Constitution authorize the federal government to subsidize individual food purchases?
3. This is why there is "Corporate Money" in politics. If you take away the incentive (stealing tax dollars to line their profits) for corporations to make political donations, they won’t do it anymore.
HUFFPOST SUPER USER
Mother77
10:12 AM on 06/27/2012
These politicians have never put a hungry child to bed.
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HUFFPOST COMMUNITY MODERATOR
iskra
Natural enemy of sharks and tro//s
09:19 AM on 06/27/2012
Republicans LOVE the free market. Free markets always include "guaranteed profit" don't they?
HUFFPOST PUNDIT
maxfax
Taa - dah!
11:22 AM on 06/27/2012
Yessirree if it's a corporation with papers the have preference and carte blanche to taxpayer dollar$
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HUFFPOST SUPER USER
NoSandwiches
09:02 AM on 06/27/2012
Who hurts? My niece has a five year old and is back in college trying to make a better life. She works part time at Dominos pizza and gets three hundred a month child support and just was dropped from insurance and food assistance programs. So we end up feeding them but get no credit for helping support two more people when we pay taxes. Growing children need good nutritious food, not Mac and cheese from a box and generic pop tarts for most meals. All this while we support farmers who get paid to do nothing.
HUFFPOST PUNDIT
maxfax
Taa - dah!
11:23 AM on 06/27/2012
She should have asked for rich parents like a Romney or a Bush.
HUFFPOST SUPER USER
FloB
06:11 PM on 07/01/2012
Farmers DO NOT " get paid to do nothing" they work harder, longer hours and in harsher conditions than most any other profession. They are not responsible for poor lifestyle choices made by others. You obviously know NOTHING about farming. It is hard physical work. It is Hot outside in the summer and fields are not air conditioned. Dairy farmers milk twice a day 365 days a year, no vacation off, no weekend off, regardless of how cold it is outside. Crops in the field are at the mercy of weather, insects, etc. Farmers pay exorbitant property taxes to own land, buy seeds, fertilizer and lime, which is not cheap, buy tractors and equipment which may cost more than your house, and still are at the mercy of weather, too rainy, crops are flooded, too dry, plants die. Farmers pay for crop insurance. It is not a profit for them to loose a crop. If a crop is destroyed by hurricane or hail, insurance will reimburse 50% of what has been spent, not the expected profit. If it is not too late in the season, they might replant and hope for better luck, otherwise no income this year.
08:22 AM on 06/27/2012
This is appalling. The insurance sharks need to be reined in. Perhaps a special surtax on their income could restore the food stamp funding.
10:49 AM on 06/27/2012
Don’t blame the insurance company. They are doing what is in their best interest. Blame the politicians for doing what is in the best interest of the insurance company instead of the people. This is what primary’s are for.
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parlimentMike
Terrorists keep you in fear
12:30 PM on 06/27/2012
Blame the American voters for thinking that Republicans or Democrats in Washington will act to change the gravy train that they are on.

http://www.jillstein.org
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AlfredE69
Liberty Lovin' Tree Hugger
07:19 AM on 06/27/2012
Pork is the politician's favorite meat.
06:28 AM on 06/27/2012
The government keep the insurance companies in business. The government put out program to reward farmers for growing what the government want them to grow. Ethanal is one program that recieve a lot of money and it is hard on engines. It polutes the air more than fossil fuel. This program should be stopped and that money use to pay for food stamps. The food stamp and most entitlements programs need to be investaged for fraud. The people who really need the help should get it, the people who are gaming the system should be taken off the system and not allowed back on for a period of time.
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realsurfin
Pardon me, can you help out a fellow American
12:50 AM on 06/27/2012
Part 3 ~ JUSTICE FOR ALL

The GOP has found or created a loophole, in a crafted court argument, that is tailored to the conservative justices ego driven interpretations and beliefs in the constitution..... an argument that the Justices would agree to that would pave way to make the taxpayer foot the bills to their own defeat with out any out of pocket costs...

They pay the CEO a huge sum of cash salary. (Subsidies and tax abatement allow all this to occur. Effectively the subsidies these corporations receive allows even larger bonuses and salaries without effecting the business bottom line.) perfectly legal/ then the CEO and the top brass toss a piece of the bundle to the super pac..... or directly to the candidate, or both. Its his choice at this time... Corporations are people all right. That is not counting any donations the "Corporation" makes when it finds it optimal to be a corporation and not a mere mortal... Citizens United? or Doctor Jekyll and Mr Hyde?

OBAMA 2012

RESTORE BALANCE TO THE SUPREME COURT.
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AlfredE69
Liberty Lovin' Tree Hugger
07:20 AM on 06/27/2012
Obama is a part of the problem. Vote 3rd party
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realsurfin
Pardon me, can you help out a fellow American
08:23 AM on 06/27/2012
There is no viable third party... the independents are too fragmented and that is the problem

also we are at a point t here will most likely be another opening in the supreme court this election cycle.. its not a matter of liking Obama... its a matter of do you want the supreme court to go even farther to the radical right and that would last for decades and decades with the young appointees