A new bill from Connecticut Democratic Rep. Rosa DeLauro would require that a subset of tariff bailout funds be allocated to American producers only. The bill comes after reports that tens of millions of dollars in bailout funds have been spent on products from Brazilian meatpacking giant JBS.
The Buy American Agriculture Act (H.R. 2712) would require that when buying agricultural products as part of the Food Purchase and Distribution Program, “the Secretary of Agriculture…make such purchases from domestically owned enterprises,” unless domestic products don’t meet quantity or quality standards. The FPDP is one of three bailout programs; it accounts for $1.2 billion of the $12 billion tariff mitigation package. Under the program, the USDA has been purchasing commodities from farmers hurt by retaliatory tariffs in the trade war with China.
Millions of dollars from the program have gone to a Brazilian-owned company, angering some who say that the company, JBS, does not require financial assistance from the U.S. government. In total, the American arm of the company has received over $62 million from the bailout program. The two brothers who own JBS have been embroiled in financial scandal in recent years. And JBS reported net income of $273 million in the first quarter of 2019, causing some to question why USDA is spending federal dollars on the profitable company.
“Why is the USDA bailing out plants operated by JBS, the largest meatpacker in the world, with a program designed to help domestic companies and producers under economic duress?” asked Tony Corbo, senior lobbyist at Food & Water Watch, in a statement last week.
Rep. DeLauro’s bill was introduced on May 14 and referred to the House Agriculture Committee. Its introduction was met with applause from farmer groups who are critical of how bailout payments have been spent.
“While America’s family farmers are financially being driven out of business, Secretary Perdue continues to provide financial aid to JBS,” the Organization for Competitive Markets said in a statement supporting the bill. “There is simply no evidence that financial aid USDA hands over to JBS finds its way down the supply chain to America’s farmers, rather it simply goes into the Brazilian corporation’s pockets.”
The Northwest Atlantic Marine Alliance, a grassroots fisherman organization, also supports the bill. “The USDA should make it a priority to buy seafood and agriculture foods from family farmers and fishermen domestically through its Food Purchase and Distribution program. At a time when our farmers and fishermen are barely surviving and multinational companies dominate our food system, this is a particularly important measure.”
Foreign ownership of U.S. farmland and food supply has become a political issue in the 2020 Democratic presidential campaigns. Both Sen. Elizabeth Warren and Sen. Bernie Sanders addressed foreign ownership in their rural policy proposals. The candidates noted that foreign ownership can present a national security concern.