Abuse of agricultural trade aid costs U.S. taxpayers

Payments from the Market Facilitation Program, administered by U.S. Department of Agriculture’s (USDA) Farm Service Agency, are also being misused. In 2018, President Trump pledged $12 billion through USDA’s Commodity Credit Corporation to provide direct aid to corn, cotton, dairy, hog, sorghum, soybean and wheat producers. Through the Market Facilitation Program, USDA has administered this direct aid to provide short-term relief to producers who are feeling the effects of ongoing trade disputes with foreign governments.In order to participate in the Market Facilitation Program, eligible applicants must have ownership in the commodity; be actively engaged in farming; have an adjusted gross income of less than $900,000 for 2014, 2015 and 2016; and comply with USDA’s Highly Erodible Land and Wetland Conservation regulations.  Yet, a recent report from the Environmental Working Group highlights two major flaws in the way Market Facilitation Program payments are divvied up: Some farming operations are receiving excessive payments because they are able to take advantage of loopholes, like having numerous absentee managers or family members claim “active personal management.” Some of these payments are going to individuals who do not live or work on the farm.