Why Does Government Act As Tax Collector For Agribusiness? : The Salt The federal government collects money from farmers to finance ad campaigns for beef, pork and more than a dozen other commodities. Critics say this turns government into a servant of industry.
NPR logo

Why Does Government Act As Tax Collector For Agribusiness?

  • Download
  • <iframe src="https://www.npr.org/player/embed/440935380/442907144" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Why Does Government Act As Tax Collector For Agribusiness?

Why Does Government Act As Tax Collector For Agribusiness?

  • Download
  • <iframe src="https://www.npr.org/player/embed/440935380/442907144" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

KELLY MCEVERS, HOST:

The government has a long history of helping farmers. It even helps farm groups collect money for their advertising. Remember the other white meat? Critics say the government has no business promoting such narrow commercial interests. NPR's Dan Charles reports.

DAN CHARLES, BYLINE: Every time a cow or a steer in this country is sold for its beef, the seller pays a dollar into a special fund. And Polly Ruhland, CEO of the Cattlemen's Beef Promotion and Research Board, helps decide how to spend it.

POLLY RUHLAND: We collect about 80 million dollars. Half of that stays at our state chapters.

CHARLES: Together, they use the money to pay for research on the nutritional quality of beef, to promote American beef and export markets and for advertising.

(SOUNDBITE OF ARCHIVED RECORDING)

UNIDENTIFIED MAN: You can have a great beef dinner in no time at all. Beef - it's what's for dinner.

CHARLES: There are more than a dozen programs like this promoting different parts of American agriculture - milk, eggs, pork, cotton. All together, they collect and spend more than half a billion dollars every year, which seems perfectly natural. Everybody has a marketing budget these days. What's unusual, though, is that the federal government, by law, collects the money like a tax on everybody in the industry and then turns it over to groups like the Cattlemen's Beef Board or the American Egg Board or the National Pork Board. These dollars are subject to certain rules. They can't be used for lobbying or to say nasty things about other foods or say things that aren't true.

RUHLAND: Everything we say must be backed up by research. We can't make claims that we can't back up.

CHARLES: But apart from that, each group gets to spend these dollars just to benefit its own industry. And that bothers people like Parke Wilde, an expert on U.S. food policy at Tufts University in Boston. He says the government is supposed to do things that are good for all of us - build roads, for instance. But really, do we need the government to collect money for beef ads?

PARKE WILDE: If we had less roads, we would be worse off. But if we had less advertising, it's not clear at all that we would be worse off.

CHARLES: What's even more troublesome, Wilde says, is that some recent examples show these groups sometimes step over the line and use the money to attack their opponents. A couple of weeks ago, for example, the Egg Board was forced to release emails showing that it tried to organize a public relations campaign against a competing product, a vegan alternative to mayonnaise.

And the pork board is facing a lawsuit claiming that it used millions of those government collected dollars to fund an industry lobbying organization called the National Pork Producers Council. Parke Wilde says there are several ways to stop this sort of thing.

WILDE: One way or another, though, it has to be fixed.

CHARLES: He says the government could just stop acting as tax collector for these farm industries, or, if it keeps the programs alive, it could change who decides how the money's spent. It could demand that the Beef Board or the Egg Board include also nutritionists, environmental advocates, not just the farmers. Dan Charles, NPR News.

Copyright © 2015 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.