# Federal Government



1/3 of crop insurance subsidies flow to insurance corps, agents—not farmers

Anne Schechinger is Senior Analyst of Economics for the Environmental Working Group. This report first appeared on the EWG’s website. 

Overview

  • Crop insurance companies and agents received almost $33.3 billion from taxpayers and farmers over the last 10 years. 
  • Ten of these companies are owned by publicly traded corporations with enormous net worths and massive executive salaries.
  • Lowering program delivery payments to companies and agents and other subsidies could save over $1 billion a year, while maintaining a safety net for farmers.

The federal Crop Insurance Program is known for paying billions of dollars every year to farmers when they experience reductions in crop yield or revenue. But the Department of Agriculture program also sends billions of dollars annually – much of it taxpayer-funded – to a small number of crop insurance companies that service the policies. Many of these companies are owned by extremely wealthy, publicly traded global corporations. The program also gives billions of dollars annually to crop insurance agents – a cost that has soared in recent years.

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Jumping off a fiscal cliff isn't an option

Bruce Lear lives in Sioux City and has been connected to Iowa’s public schools for 38 years. He taught for eleven years and represented educators as an Iowa State Education Association regional director for 27 years until retiring.

Where I grew up there were multiple sources of news. To hear the news, men gathered at the post office and Standard station, while women preferred the Clover Farm Store or Rebekah Lodge. 

It wasn’t broadcast news. It was secret, local news that an impolite observer might call gossip.

There was typical gossip including who bought a new combine, whose car was parked too long at the lower tavern, and who had the worst dye job in town. 

But there were special categories delivered only in whispers. Things like a cancer diagnosis, a church lady with a fresh shiner, or a recent bankruptcy. These whispers were met with silence, and the few Catholics crossing themselves.

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Grassley highlights inspector general vacancies at federal agencies

Rick Morain is the former publisher and owner of the Jefferson Herald, for which he writes a regular column.

Federal government whistleblowers have a champion in the U.S. Senate: Republican Chuck Grassley of Iowa.

We can measure a politician’s sincerity about a specific issue or policy by how consistently he or she maintains that position, regardless of which party holds power. Through the years—decades, really—that Grassley has served in the U.S. Senate, he has always insisted that government employees who expose questionable dealings or negligent mismanagement by their superiors must be protected in their jobs, without fear of retaliation.

That’s particularly true when the employee’s specific job is to investigate such dealings. Those crucial public servants are the “inspectors general” of the various federal agencies.

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Iowans back debt ceiling plan, after winning concession on biofuels

All four Iowans in the U.S. House voted on April 26 for a plan to raise the debt ceiling by $1.5 trillion for the coming year, in exchange for “aggressive caps on federal spending” over the next decade.

The House approved the Limit, Save, Grow Act of 2023 by 217 votes to 215, meaning House Speaker Kevin McCarthy had no votes to spare.

The speaker secured passage of his bill by making concessions on biofuels subsidies on the eve of the vote. McCarthy had previously indicated he was not open to altering the bill, but a group of Republicans from the Midwest—including Iowa’s Representatives Mariannette Miller-Meeks (IA-01), Ashley Hinson (IA-02), Zach Nunn (IA-03), and Randy Feenstra (IA-04)—insisted on changes.

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Democrats must offer a vision for children and families

Charles Bruner served in the Iowa legislature from 1978 to 1990 and was founding director of the Child and Family Policy Center from 1989 through 2016. For the last six years, he headed a Health Equity and Young Children initiative focusing on primary child health care for the Robert Wood Johnson Foundation.

Democrats prioritize investing in children but don’t stress the importance of parents in raising the next generation. Republicans do the opposite.

The electorate wants both.

Until we make children’s issues part of our political dialogue, we will not do either.

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USDA makes federal farm subsidies less transparent

Anne Schechinger is Senior Analyst of Economics for the Environmental Working Group. This report, which she co-authored with the EWG’s Senior Vice President for Government Affairs Scott Faber, first appeared on the EWG’s website. 

The Environmental Working Group’s newly updated Farm Subsidy Database shows that federal farm subsidies between 1995 and 2021 totaled $478 billion. This huge amount of taxpayer money does almost nothing to help farmers reduce their greenhouse gas emissions or adapt to adverse weather conditions caused by the climate crisis.

Our database update also shows that farm subsidy funding still goes to the largest and wealthiest farms, which can weather the climate crisis best, and that payments are getting less transparent, obscuring who has received almost $3.1 billion in payments. 

The Department of Agriculture’s subsidy funding could be used in much more useful ways that would help farmers in mitigating their emissions and becoming more resilient to hazardous weather conditions. Instead, it’s still a handout for rich landowners, city dwellers and family members of farmers. Even the USDA is benefiting, with one of its divisions receiving almost $350 million in payments.

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