ACTION ALERT: Stop Wasteful
Government-Backed Loans

Sign the Online Petition to Suspend USDA Subsidies that Contribute to Overproduction & Factory Farms in the Pork & Poultry Sectors

7/14/09
Hog and poultry prices paid to farmers are at rock bottom lows. These sectors in recent years expanded, mostly through factory farms, to unsustainable levels and much of that expansion has been supported by favorable government-backed loans provided through USDA’s Farm Service Agency. The Farm Service Agency, despite the current over-supply and low prices in the market, continues to provide loans to new and expanding hog and poultry operations. Secretary of Agriculture Tom Vilsack should take action immediately to end this counterproductive and destructive lending.

The low prices have also caused secondary impacts as well. In the past six months alone, the factory farm industry has asked the United States Department of Agriculture (USDA) for millions of taxpayer dollars to buy up “surplus” hog and poultry products in an attempt to stabilize hog and poultry prices. Ironic, isn’t it? Too many factory farms created the overproduction and now factory farm backers want taxpayers to pay for buying the excess supply. Follow this link for a news story on the use of Section 32 funds by the Secretary of Agriculture.

The first thing we need to do is end government loans to new and expanding hog and poultry operations. This continuing overproduction fueled by USDA's use of loans is significantly contributing to further consolidation of the marketplace, putting more independent family farmers out of business. When similar over-supply circumstances have existed in the past, the Farm Service Agency (FSA) has placed restrictions on or suspended issuance of federal direct and guaranteed loans. Below is a statement USDA made in 1999 when describing why it was suspending loans to new and expanding hog facilities:

“It is inconsistent with USDA policies for FSA to continue to finance construction of additional production facilities through direct loans and loan guarantees while other agencies within USDA expend resources to ameliorate over-supply conditions.”

-Federal Register-January 1999

What You Can Do — Sign the Online Petition
The goal is to collect 3,000 signatures over the summer and we already have over 400. We need your help to spread the word and meet our goal. Please sign the petition and encourage your friends, family and colleagues to sign our petition.

Sign the online petition to Secretary of Agriculture Tom Vilsack calling for an end to wasteful government-backed loans by going to: www.iowacci.org/whatcanido/stopUSDAloan.html.

If you have any questions, contact the Land Stewardship Project at 612-722-6377.

Petition Letter

The Honorable Tom Vilsack
Secretary of Agriculture
200-A Jamie L Whitten Building
1400 Independence Ave SW
Washington, D.C. 2050

Dear Secretary Vilsack,

We are requesting that USDA suspend all loans to specialized hog and poultry facilities. USDA is currently guaranteeing loans to new production facilities, which contribute to over-supply in an already saturated marketplace. At the same time, USDA is using taxpayer dollars for bonus pork and poultry buys in order to stabilize prices resulting from overproduction. (On March 31, USDA committed to a $25 million bonus pork buy, and in May the industry asked for an additional $50 million pork buy.)

The use of USDA loan programs for new specialized hog and poultry facilities is an irresponsible use of taxpayer dollars.

When similar situations occurred in the past, USDA suspended the use of loan programs for the construction of these specialized facilities to ensure that the Agency did not continue to contribute to the overproduction situation.

In a January 8, 1999, explanation of why USDA was suspending loans to specialized hog facilities, FSA said:

“It is inconsistent with USDA policies for FSA to continue to finance construction of additional production facilities through direct loans and loan guarantees while other agencies within USDA expend resources to ameliorate over-supply conditions.”

-Federal Register-January 1999

Continuing overproduction in both the hog and poultry industries is resulting in long-term depression of producer prices, closing of pork plants, cancelling of poultry contracts, integrator requests for government assistance and further concentration of markets. All the while, USDA continues to make loans that further exacerbate the problem.

For these reasons:

We call for USDA to suspend all direct or guaranteed farm ownership or operating loans for the construction or expansion of specialized hog or poultry production facilities.

Sincerely,

-30-