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Maisano, Frank [frank.maisano@bracewell.com] 4/26/2018 3:36:27 PM Ringel, Aaron [/o=Exchangel_abs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=1654bdc951284a6d899a418a89fb0abf-Ringel, Aar] [SPAM] FW: The Largest Secret US Govt Program: Federal Crop Insurance
Per our conversation...
From: "Maisano, Frank" <frank.maisano@bracewell.com> Sent: Apr 26, 2018 9:56 AM To: "Maisano, Frank" <frank.maisano@bracewell.com> Subject: The Largest Secret US Govt Program: Federal Crop Insurance
A Lesson in Secrecy: Federal Crop Insurance Program Compares Poorly to the Small Refinery Hardship Program
Recently, certain Midwestern politicians have complained that hardship waivers premised on confidential business information, or CBI, are less transparent than they would prefer. But protection of CBI in this instance makes sense since the hardship waiver is premised on competitive information generated by publicly-traded corporations. For this reason, the statutory framework is based on confidentiality.
By contrast, the Federal Crop Protection Program is not based on CBI but uses secrecy to avoid political scrutiny. The Environmental Working Group has found that the top fifth of farm recipients collected almost 80 percent of all crop insurance premium subsidies. The premise for keeping these recipients secret is unclear at best. The Heritage Foundation reported:
"Just which big farm businesses are on the federal dole? Taxpayers have no way of knowing. Congress passed a law in 2000 that protects subsidy recipients from public disclosure. Beyond shielding Congress and big farm businesses from taxpayers' wrath, it is not clear why the names of recipients are kept secret. The names of recipients of otherfarm subsidies -- such as commodity subsidies, which boostfarmers' incomes -- are publicly available. Farm bills being considered in both chambers would repeal commodity subsidies while expanding this "secret" crop insurance. Transparency in commodity subsidies played a big role in making these handouts difficult to politically justify today. Once taxpayers learned that these subsidies were mostly going to large landowners and wealthy farm operations, whose incomes far exceeded those of the average American, outrage rightly ensued." Source: https://www.heritage,org/3gn'cuSture/commentary/the-farm-biSls~secret-handout~bigcorporate-farms
According to the non-partisan Sunlight Foundation, "the multi-billion dollar agricultural insurance and the agribusiness establishment -- backed by millions in campaign contributions and lobbying" has continually blocked efforts to drop the secrecy of the Federal Crop Protection Program recipients. Source: https://suniightfoundaticffl.corn/2014/02/07/farm~ bill-allows-congress-te-keep-crap-subsidies-secret/
A GREAT SOURCE TO DISCUSS CROP INSURANCE SECRECY
The Environmental Working Group has been very active on this and would be happy to discuss it with you. Their best contact is Scott Faber
Scott Faber Senior Vice President Environmental Working Group
ZZZZAZZZ: (desk)
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siaber@ewg.org
Here is some of their work:
https://www.ewg.Org/release/new-report-highnghts-wavs-cut-waste-federal-crop-insurance-program#.WuDuPoiwaUk https://www.ewfl.Org/research/crop-insurance#.WuDuQ4jwaljk https://www.ewg.Org/research/cutting-waste-crop-insurance-program#.WuDuRojwaUk https://www.ewg.Org/agmag/2016/02/crop-insurance-industry-s-top-seven-whoppers#.WuPuSliwaUk https://www.ewfl.Org/poncv-plate/2.013/t t /crop-insurance-pricier-proflrams-jt-was-desiflned-replace#.WuDuTojwaUk https://wvfw.ewg.0rg/3gn1ag/20i 2/ i 2/crop-insurance-safetv-net-or-tran1poiine#.WuDuUiivj3Uk
COST Of CROP INSURANCE VS. SMALL REFINER EXEMPTION
The financial comparison to the refinery hardship program isn't even close. First, the dollars saved by small refinery hardship waivers are not taken from the federal coffers or tax payers. Second, the actual taxpayer dollars at stake in the Federal Crop Protection Program dwarf the hardship waivers in sheer numbers. According to the CBO, "The federal crop insurance program, which helps protect agricultural producers from losses due to low crop yields or lower-thanexpected crop prices, is one of the largest support programs for those producers. It cost the federal government $5 billion in 2016 and an average of nearly $9 billion annually over the past five years." Source: https://www.cbo.gov/publication/53375
And yet these self-same Midwestern politicians staunchly defend the secret giveaways of the Federal Crop Protection Program while complaining about legitimate CBI protections under a refinery hardship program that is stringently reviewed by two different federal agencies and undertaken as a requirement of the federal courts.
A FEW ARTICLES
See the links below:
https://newrepublic.com/3rti'cle/116470/farm-bin-2014-its-even-worse-old-f3rm-bin http://www.theamericanconservative.com/artides/crony-agriculture/
FEDERAL CODE:
CFR regs related to confidentiality of employer ID numbers:
(g)ACCESS TO EMPLOYER IDENTIFICATION NUMBERS BY FEDERAL CROP INSURANCE CORPORATION FOR PURPOSES OF THE FEDERAL CROP INSURANCE ACT (1)IN GENERAL
In the administration of section 506 of the Federal Crop Insurance Act, the Federal Crop Insurance Corporation may require each policyholder and each reinsured company to furnish to the insurer or to the Corporation the employer identification number of such policyholder, subject to the requirements of this paragraph. No officer or employee of the Federal Crop Insurance Corporation, or authorized person shall have access to any such number for any purpose other than the establishment of a system of records necessary to the effective administration of such Act. The Manager of the Corporation may require each policyholder to provide to the Manager or authorized person, at such times and in such manner as prescribed by the Manager, the employer identification number of each entity that holds or acquires a substantial beneficial interest in the policyholder. For purposes of this subclause, the term "substantial beneficial interest" means not less than 5 percent of all beneficial interest in the policyholder. The Secretary of Agriculture shall restrict, to the satisfaction of the Secretary of the Treasury, access to employer identification numbers obtained pursuant to this paragraph only to officers and employees of the United States or authorized persons whose duties or responsibilities require access for the administration of the Federal Crop Insurance Act.
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(2)C0NFIDENTIALITY AND NONDISCLOSURE RULES
Employer identification numbers maintained by the Secretary of Agriculture or the Federal Crop Insurance Corporation pursuant to this subsection shall be confidential, and except as authorized by this subsection, no officer or employee of the United States or authorized person who has or had access to such employer identification numbers shall disclose any such employer identification number obtained thereby in any manner. For purposes of this paragraph, the term "officer or employee" includes a former officer or employee. For purposes of this subsection, the term "authorized person" means an officer or employee of an insurer whom the Manager of the Corporation designates by rule, subject to appropriate safeguards including a prohibition against the release of such social security account numbers (other than to the Corporations) by such person. Source: https://www.law.cornell.edu/uscode/text/26/6109
CONGRESSIONAL VOTES
From HR 2559 - Agricultural Risk Protection Act o f2000
Voting yes: Durbin, Grassley and every other farm Senator
SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is amended by adding at the end the following: ''(c) Protection of Confidential Information.-
"(1) General prohibition against disclosure.--Except as provided in paragraph (2), the Secretary, any other officer or employee of the Department or an agency thereof, an approved insurance provider and its employees and contractors, and any other person may not disclose to the public information
furnished by a producer under this title.
"(2) Authorized disclosure.-- "(A) Disclosure in statistical or aggregate form.--
Information described in paragraph (1) may be disclosed to the public if the information has been transformed into a statistical or aggregate form that does not allow the identification of the person who supplied particular information.
"(B) Consent of producer.--A producer may consent to the disclosure of information described in paragraph (1). The participation of the producer in, and the receipt of any benefit by the producer under, this title or any other program administered by the Secretary may not be conditioned on the producer providing consent under this paragraph.
"(3) Violations; penalties.--Section 1770(c) of the Food Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to the release of information collected in any manner or for any purpose prohibited by this subsection.".
From HR 1947 - Federal Agriculture Reform and Risk Management Act of 2013
Duckworth Vote against an amendment that sought to limit premium subsidies to those producers with an AG I under $250,000, limit per person premium subsidies to $50,000 and cap crop insurance providers' reimbursement of administrative and operating at $90.
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https://www.congress.gov/amendment/ 113th-congress/house-amendment/ 216
Text of Amendment:
Subtitle B--Assisting Family Farmers Through Insurance Reform Measures
SEC. 11045. CROP INSURANCE PREMIUM SUBSIDIES DISCLOSURE IN THE PUBLIC INTEREST. Section 502(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 1502(c)(2)) is amended-- (1) by redesignating subparagraphs (A) and (B) as subparagraphs (C) and (D) respectively; and (2) by inserting before subparagraph (C) (as so redesignated) the following:
"(A) DISCLOSURE IN THE PUBLIC INTEREST.-- Notwithstanding paragraph (1) or any other provision of law, except as provided in subparagraph (B), the Secretary shall on an annual basis make available to the public-- "(i)(l) the name of each individual or entity who obtained a federally subsidized crop insurance, livestock, or forage policy or plan of insurance during the previous fiscal year; "(II) the amount of premium subsidy received by the individual or entity from the Corporation; and "(III) the amount of any Federal portion of indemnities paid in the event of a loss during that fiscal year for each policy associated with that individual or entity; and "(ii) for each private insurance provider, by name-- "(I) the underwriting gains earned through participation in the federally subsidized crop insurance program; and "(II) the amount paid under this subtitle for-- "(aa) administrative and operating expenses; "(bb) any Federal portion of indemnities and reinsurance; and "(cc) any other purpose.
"(B) LIMITATION.--The Secretary shall not disclose information pertaining to individuals and entities covered by a catastrophic risk protection plan offered under section 508(b).".
Other Crop Insurance Votes
2012- Amendment to limit crop insurance premium subsidies to persons with an average income over $750,000 https://www.senate.flov/Segislative/US/roll call lists/rol! call vote cfm.cfrn?congress=112&$ession=2&Ote=00157
Grassley-Yea Klobuchar-Yea Stabenow - Nay Durbin - Yea Thune - Nay Blunt - Nay McCaskill - Nay
2013 - House amendment to limit subsidies to producers with gross income under $250,000 https://www.govtrack.us/congress/votes/113-2013/h276
Duckworth - Nay
2015 - Senate vote to reject a $3 billion cut to crop insurance https://www.senate.gov/legislative/LIS/roll caii sfs/roil call vote cfm.cfm?congress-114&se$sion-l&vote-0033Q
Grassley-Yea Klobuchar-Yea Enrst-Yea Fischer-Yea Durbin - Nay Thune - Yea
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Blunt - Yea McCaskill - Nay Heitkamp - Yea Donnelly-Yea
FRANK MAISANO Senior Principal Exti__ Ex. 6__ j Policy Resolution Group
FRANK MAISANO Senior Principal frank.maisano@poSicyres.com "I": !------- Fv' fi------- 1: F: +1.+1.800.404.3970 BRACEWELL LLP 2001 M Street MW, Suite 900 |Washington, D.C. | 20036-3310 ooiicyres.com |profile \ download v-card
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