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For Immediate Release
January 14, 2009

SENATORS URGE AGRICULTURE NOMINEE VILSACK TO CLOSE FARM PAYMENT LOOPHOLE

  

           (WASHINGTON, D.C.) – U.S. Senators Byron Dorgan (D-ND) and Chuck Grassley (R-IA) have sent a letter to Agriculture Secretary Nominee and former Iowa Governor Tom Vilsack urging him to close a major farm payment program loophole and ensure that payments are going to active farmers. The Senators say that every year, millions of dollars in taxpayer funds are going to non-farmers who are gaming the farm program.

 

           "For years we have fought to ensure that farm program payments go only to those actively farming. While we will continue to push legislation to focus the farm program payment system on family farmers, you have the authority to close loopholes that allow non-farmers to exploit the farm program to the tune of millions of dollars every year," the Senators wrote in the letter. "We are pleased that President-elect Obama has recognized that there are loopholes in the law and has called for greater enforcement of the farm payment program,"

 

            The Food, Conservation, and Energy Act of 2008 put in place new guidelines on farm program payments. But a glaring loophole was left open that allows individuals to receive farm payments through vague and ambiguous criteria. Under this rule, someone could participate in an annual conference call about planting decisions and claim a federal farm program payment on the grounds that they "manage" the farm. As Agriculture Secretary, Vilsack will have the authority under existing law to amend this rule and put in place a test of management activity that is measurable and certain.

 

             The Senate Agriculture Committee is holding a confirmation hearing on Governor Vilsack's nomination today. Click here to view the letter.