DRAINING THE BIG FOOD - Feed the Truth

 
CONTINUE READING
DRAINING THE BIG FOOD - Feed the Truth
DRAINING
THE
BIG FOOD
SWAMP F E B RUA RY 2021

                      1
DRAINING THE BIG FOOD - Feed the Truth
E X ECUT I VE S U M M A RY D R A I N I N G T H E B I G F O O D SWA M P

MAPLIGHT is a nonpartisan, 501(c)(3) nonprofit                                      FEED THE TRUTH is a 501(c)(3) nonprofit
organization that reveals the influence of money in                                 organization committed to realizing a food system
politics, informs and empowers voters, and advances                                 that prioritizes the future of our planet, equity, and
reforms that promote a more responsive democracy.                                   people’s health over short-term corporate wealth.

AC KN OW L E D G E M E N TS
This report was compiled in partnership with Maplight by the Feed the Truth team comprised of: Lucy Martinez Sullivan, Executive Director;
TJ Faircloth, Director of Research and Programs; Nick Guroff, Director of Communications; KyungSun Lee, Program Associate.
Research design by Daniel G. Newman (Maplight), Laura Curlin (MapLight), TJ Faircloth (Feed the Truth).
Research was conducted by the Maplight team comprised of: Laura Curlin, Data Director; Bergen Smith, Data Analyst.
Copy was developed by Frank Bass, MapLight’s Contributing Editor.
Project development was overseen by Amanda Blackhurst (Feed the Truth) and Laura Curlin (Maplight).
Report design by Teal Media: Aruna Mall, Creative Director; Ellen Yee, Designer; Anna Hovland, Project Manager.

                                                                                                                                             2
DRAINING THE BIG FOOD - Feed the Truth
E X ECUT I VE S U M M A RY D R A I N I N G T H E B I G F O O D SWA M P

DRAINING THE
BIG FOOD SWAMP
“Draining the Big Food                                                   M ET H O D O LO GY
                                                                         To understand the depth of the swamp and
Swamp” looks at the size and                                             what we’ll call the “Big Food swamp”—to play on
                                                                         another definition of as much—we determined
correlating political clout of                                           the number of food and beverage trade groups
one powerful industry that has                                           under the IRS 501(c)5 and (c)6 designations
                                                                         and pulled figures on their size, as well as their
long dominated Washington                                                campaign contributions and lobbying disclosures
                                                                         (in the case of the 50 largest trade groups by
politics: Big Food.                                                      revenue).2 We then identified the top 20 trade
                                                                         associations with the highest political spending
                                                                         (federal campaign contributions and lobbying
It’s a critical industry to                                              spending) to focus our analysis as a means to
                                                                         best understand the industry’s consolidated
examine given the implications                                           political power.
of its vast market power, as
well as its corollary political                                          R AT I O N A L E
                                                                         Our reason for taking this approach? Trade
power. Big Food is a $1.1 trillion
                                                                    1
                                                                         associations are a primary vehicle for corporate
                                                                         capture of federal policy. They combine,
a year industry dominated                                                concentrate, and exert political power on behalf
by a few, highly-consolidated                                            of multiple corporations. They help obfuscate
                                                                         the unpopular political stances of corporate
corporations that influence                                              members. And they help funnel hundreds of
                                                                         millions each year into our political system, much
everything from how our food                                             of which the public has little visibility on.
is grown and how we treat
essential workers to the health                                          FINDINGS
                                                                         What we discovered in this assessment?
of our children and our ability                                          The Big Food swamp is not only wide, it is deep.
                                                                         This is to say, while there are many actors, there
as a nation to achieve greater                                           are a few with outsized political command and
racial, gender, and social equity.                                       control. Not only are there just a handful of trade
                                                                         groups calling the shots in Washington, but the
                                                                         agenda of these trade associations tend to be
                                                                         driven by the biggest, most destructive global
                                                                         corporations.

                                                                                                                               3
DRAINING THE BIG FOOD - Feed the Truth
TOP 100
         FOOD
         TRADE
ABOUT    GROUPS

6,300
         The top 100 food trade groups by assets represent
         more than 70 percent of the total assets reported
         by all food industry trade groups in their last tax
         year, or some $5.3 billion in total assets.

FOOD
                                              TOP 100 FOOD
                                             TRADE GROUPS
                                                REPRESENT

                                              70%
TRADE
         $2.1B                   $5.3B

GROUPS   FOOD TRADE GROUP REVENUE
         Only 68 food trade groups reported more
         than $10 million in revenue in their last tax
         year, with only two reporting more than
         $100 million (Dairy Management, Inc. and
         the National Restaurant Association).

                 $10M
                 68 GROUPS

                                               $100M
                                               2 GROUPS

                                                               4
DRAINING THE BIG FOOD - Feed the Truth
TH E F I N D I N G S D R A I N I N G T H E B I G F O O D SWA M P

$33.7M
                                                                    GIVEN TO FEDERAL
                                                                    POLITICIANS BY
                                                                    THE TOP 20 FOOD
                                                                    TRADE GROUPS *                                        S I N C E 2007

3 GROUPS                                                           50% OF TOTAL
                                                                   CAMPAIGN SPENDING
Among the top 20 food trade groups, just three
accounted for nearly 50 percent of the total
campaign spending: the Farm Credit Council, the
National Restaurant Association (NRA), and the
National Cattlemen’s Beef Association.

THE TOP
BENEFICIARIES
Among the top beneficiaries:
Sen. Mitch McConnell, R-Ky., ($239,499),
Rep. Kevin McCarthy, R-Calif., ($320,750),
                                                                     Mitch McConnell $239,499

                                                                                                Kevin McCarthy $320,750

and other members of the Senate and
                                                                                                                                           Collin Peterson $458,361

House agriculture committees such as the
former House Chair Collin Peterson, D-Minn.
($458,361).

                                                                                                                                                          5
DRAINING THE BIG FOOD - Feed the Truth
TH E F I N D I N G S D R A I N I N G T H E B I G F O O D SWA M P

$300M
                                                                    SPENT ON
                                                                    LOBBYING BY THE
                                                                    TOP 20 FOOD
                                                                    TRADE GROUPS *S I N C E 2008

3 GROUPS
And, again, just three trade associations
                                                                   50% OF TOTAL
                                                                   LOBBYING DOLLARS
accounted for the lion’s share of this spending.
The National Restaurant Association (NRA), the
American Beverage Association (ABA), and the
Consumer Brands Association (CBA) accounted
for almost 50 percent of these lobbying dollars.

MORE THAN 80%
OF TOP 3 TRADE GROUPS’
LOBBYISTS ARE “REVOLVERS”
To make their lobbying all the
more effective, these three trade
associations alone deployed an
army of lobbyists, more than 80
percent of whom could be called
“revolvers” (individuals who now
lobby the officials and agencies
they once worked for).

                                                                                                   6
DRAINING THE BIG FOOD - Feed the Truth
WHY IT
MATTERS

          7
DRAINING THE BIG FOOD - Feed the Truth
W H Y IT M AT T E RS D R A I N I N G TH E B I G FO O D SWA M P

These figures on their
own are cause for alarm
and paint a vivid picture
as to why, for example:
5%
OF THE WORKFORCE IS
                                         $
                                               24B
                                               INCREASE IN FEDERAL
                                                                                 85%
                                                                                 OF BEEF IS PRODUCED
LIVING IN POVERTY                              FARM SUBSIDIES                    BY 4 CORPORATIONS
The federal minimum wage has                   Federal farm subsidies have       The food industry has continued
not increased in more than a                   increased by $24 billion in       to consolidate, with only four
decade, the tipped minimum                     2020—buoying the country’s        corporations producing 85
wage has not increased in nearly               largest farmers and the profits   percent of all the beef in the
three, and approximately five                  of corporations like Archer       U.S. and three corporations
percent of the U.S. workforce is               Daniels Midland (ADM), Cargill,   controlling over 50 percent of
living in poverty as a result.3,4              and Bayer as family farms         the world’s commercial seed
In fact, the National Restaurant               continue to decline by the        market.8,9
Association continues to lead                  thousands each year.6,7
Big Food’s decades-long
opposition to increases to the
federal minimum wage.5

                                                                                                                   8
DRAINING THE BIG FOOD - Feed the Truth
W H Y IT M AT T E RS D R A I N I N G TH E B I G FO O D SWA M P

They also provide context
for why, amidst the
COVID-19 pandemic:
                                               National restaurant chains got big
                                               bailouts while close to 20 percent of U.S.
                                               restaurants closed for good, and many
                                               small businesses saw no COVID relief
                                               whatsoever.
                                                                 10,11

                                               The country’s three largest meatpackers
                                               failed to provide adequate safeguards for
                                               workers during the pandemic, and have yet to
                                               be held truly accountable for unsafe working
                                               conditions, avoidable outbreaks, and the
                                               hundreds of employee deaths that resulted.
                                                                                            12

                                               Lawmakers have sought to broadly
                                               shield corporations from liabilities
                                               associated with their inability and
                                               unwillingness to adequately protect
                                               their workforce.
                                                                         13

                                                                                                 9
DRAINING THE BIG FOOD - Feed the Truth
J UST TH E F I RST C O U RS E D R A I N I N G T H E B I G F O O D SWA M P

BIG FOOD’S BIG SPENDING:
JUST THE FIRST COURSE
But sadly, the discernable campaign                                              they are often conduits for dark money from their
contributions and lobbying figures provide only                                  member corporations. They will also employ tactics
one part of the picture as to why federal policy                                 like passing corporate contributions through a
so deeply rewards large corporations at the                                      series of affiliated non-profit organizations as a
expense of the general public.                                                   way of concealing political influence.15

                                                                                 Additionally, the numbers we are talking about
For instance, in the 2020                                                        here are only reflective of Big Food’s federal
election cycle alone, the                                                        political footprint. Every year the industry spends
                                                                                 a staggering amount of money in politics,
agribusiness industry spent                                                      particularly vis à vis trade groups, at the local,
                                                                                 state, and international level as well.
over $186 million on campaign
contributions, but this is                                                       To put in further context, the food industry’s
                                                                                 campaign spending is comparable with that of
only a portion of what was                                                       the energy and natural resources industry, which
                                                                                 contributed approximately $215 million during
spent on behalf of food                                                          the 2020 election cycle. And in the same election
industry interests.                                                              cycle, the food industry contributed approximately
                                       14

                                                                                 four times more than the defense industry to
                                                                                 political committees.16
The rest? It’s what you’d call “dark money”—
money pooled through more opaque corporate
channels such as political organizations, trade
associations, shell corporations, and even
super PACs. These entities effectively shield the
identity of their donors from public view. Trade
associations contribute to this murky picture as

Former House Agriculture Committee Chairman Collin Peterson (D-MN) (R) talks with Former U.S. Agriculture Secretary Edward Schafer during
the American Meat Institute's Annual Hot Dog Day Lunch in the courtyard of the Rayburn House Office Building July 23, 2008 in Washington, DC.
The event drew hundreds of people from Capitol Hill including members of Congress, their staffs, journalists and lobbyists.

                                                                                                                                                10
BUT IT
DOESN’T
HAVE TO
BE THIS
WAY.  11
R EC O M M E N DAT I O N S D R A I N I N G T H E B I G F O O D SWA M P

The insurrection stirred by Trump’s ceaseless
lies about the election and the related vote
                                                                         Big Food corporations are
against certifying a free and fair election have                         taking a range of more modest
propelled corporate political interference back
into the news (as it was when Trump lied about                           steps and positions from
his commitment to “drain the swamp” some
five years ago). As Paul Polman, former CEO
                                                                         stopping all giving to election
of Unilever, recently asserted in the Harvard                            deniers to reviewing current
Business Review: “we need to fundamentally
rethink how businesses operate in Washington.”                           policies for political giving
Polman advocates the dissolving of corporate                             (ADM, McDonald’s, Safeway).
                                                                                                                   18

PACs, ending of corporate and trade association
lobbying, and a reversal of the Citizens
United Supreme Court ruling that opened the
floodgates for corporate money to flow into                              No major trade association has yet made a
politics, and “brought the U.S. political system to                      substantive commitment of any kind. But pressure
the point of legalized corruption.”17                                    is mounting.

                                                                                                                            12
R EC O M M E N DAT I O N S D R A I N I N G T H E B I G F O O D SWA M P

RECOMMENDATIONS
Corporations and trade
groups should heed public
concern for what it is:
outrage not just with
the overt, highly visible,
and violent undermining
of democracy, but also
with the undermining of
democracy in total.
                                                                         A temporary reckoning
                                                                         with their mechanisms of
                                                                         influence should become
                                                                         commitments to pull back
                                                                         as Polman suggests.

                                                                                                    13
R EC O M M E N DAT I O N S D R A I N I N G T H E B I G F O O D SWA M P

The Biden Administration
can build upon its ethics
commitments and start
by ensuring an end to the
revolving door between
government and industry.
It can also extend rules to
eliminate conflicts of interest
for government officials
who have affiliations with
food corporations and trade
associations.

                                                                         14
R EC O M M E N DAT I O N S D R A I N I N G T H E B I G F O O D SWA M P

Finally, corporations
and their various proxies
should immediately open
their books and disclose
the totality of their
political giving across
every geography they do
business in.
This level of transparency
can lay the groundwork for
a requisite and total halt in
corporate political giving.

The Big Food Swamp can
be drained if our elected
leaders show the resolve
and integrity the public has
long demanded.

                                                                         15
B I G FO O D’S B I G S P E N D : I N C O N T E XT D R A I N I N G T H E B I G FO O D SWA M P

BIG FOOD’S BIG
SPEND: IN CONTEXT
Donald Trump pledged to “drain the swamp
in Washington, D.C.”19 It was a message that
                                                                                       The trouble with departing
continues to resonate with the vast majority of                                        from the status quo is that
Americans.20 But far from draining the swamp,
he deepened it. Vastly. And he did so after                                            it is maintained by powerful
issuing an ethics plan with broad public appeal:
campaign finance reform, bans on revolving
                                                                                       and vested interests: global
doors, tighter rules on lobbying designations, and                                     corporations, their primary
Congressional term limits.21
                                                                                       beneficiaries, and their
Instead he installed a veritable “who’s who” of
corporate executives, lobbyists, and lawyers to
                                                                                       surrogates.
run powerful agencies. Their conflicts of interest
were rife. And their disposition was often to
                                                                                        Overcoming as much will take enormous political
dismantle the very accountability mechanisms
                                                                                        and public resolve that prior administrations
they were charged with stewarding. A former
                                                                                        and congresses have failed to muster. But the
ExxonMobil CEO to run the State Department.
                                                                                        case for change is mounting. And this report
A pharmaceutical lobbyist to run Health and
                                                                                        is a contribution to the growing evidence and
Human Services. An anti-worker, corporate
                                                                                        impetus to realize a truer, fairer democracy.
lawyer to run the Department of Labor. And the
list goes on.

Out of the gates, the Biden Administration is
offering some promising signs of change. He’s
signed the strongest presidential ethics order
to date.22 His appointments to the Consumer
Financial Protection Bureau are restoring
teeth to a vital enforcement agency the Trump
Administration sought to dismantle.23 And the
president is distancing himself from the nepotism
of his predecessor.24

But there are other indicators that the current
Administration will settle for a less bombastic,
but still troubling status quo. For instance,
waivers to the new ethics order have already
been requested as part of former President
and CEO of the U.S. Dairy Export Council
Tom Vilsack’s appointment as Secretary of
Agriculture.25

                                                                                                                                          16
E N D N OT E S D R A I N I N G T H E B I G F O O D SWA M P

     ENDNOTES
1    “What is Agriculture’s Share of the Entire U.S. Economy?,” USDA Economic     15   Center for Responsive Politics. “Dark Money,” OpenSecrets.org,
     Research Service, last updated October 15, 2020                                   accessed February 5, 2021

2    Cooksey-Stowers K, Schwartz MB, Brownell KD. Food Swamps Predict             16   Center for Responsive Politics. “Interest Groups Overview,”
     Obesity Rates Better Than Food Deserts in the United States. Int J Environ        OpenSecrets.org, accessed February 5, 2021
     Res Public Health. 2017;14(11):1366. Published 2017 Nov 14. doi:10.3390/
     ijerph14111366. The authors put forward the following definition:            17   Paul Polman. “3 actions CEOs must take to uphold U.S. democracy,”
     “Food swamps have been described as areas with a high-density of                  Harvard Business Review, January 20, 2021
     establishments selling high-calorie fast food and junk food, relative to
     healthier food options.”                                                          Judd Legum and Tesnim Zekeria. “Major corporations say they will
                                                                                  18   stop donating to members of Congress who tried to overturn the election,”
3    U.S. Department of Labor. “History of Changes to the Minimum Wage Law,”           Popular Information, January 10, 2021
     accessed February 5, 2021
                                                                                  19   “Trump’s First Hundred Days? A transcript of the weekend’s program on
4
     U.S. Bureau of Labor Statistics. “A profile of the working poor, 2018,”           Fox News Channel,” Wall Street Journal, Opinion, October 23, 2016
     Report 108, July 2020
                                                                                  20   Grace Sparks. “Very few Americans are satisfied with campaign finance laws,
5    Restaurant Opportunities Centers United. Stop the Other NRA, May 2017             but most don’t know a lot about them,” CNN, April 4, 2019

6    Jonathan Knutson. “USDA says 2020 farm income to rise,”                      21   Trevor Hughes. “Trump calls to ‘drain the swamp’ of Washington,”
     Post Bulletin, December 6, 2020                                                   USA Today, October 18, 2016

7    Sarah Eames. “Number of family farms continues to decline,”                  22   Tamara Keith. “Biden’s ethics plan is stringent. Some want it to be even stronger,”
     The Daily Star, April 14, 2019                                                    NPR, February 2, 2021

8    Bernice Napach. “How 4 companies control almost all the meat you eat,”       23   Tory Newmyer. “Biden’s choices for CFPB, SEC signal pivot to robust
     Yahoo Finance, February 19, 2014                                                  enforcement,” The Washington Post, January 18, 2021

9    Center for Food Safety and Save our Seeds. Seed Giants vs. U.S. Farmers,     24   Nicole Lyn Pesce. “No Biden family members will have a role in government or
     February 2013                                                                     foreign policy, President Biden says,” Market Watch, February 3, 2021

10   Kara Voght. “Small restaurants are furious about a loophole in the           25   Ellyn Ferguson. “Biden’s choice to lead USDA helped monitor OxyContin maker,”
     Stimulus Bill. They should be,” MotherJones, March 27, 2020                       Roll Call, January 11, 2021

11   Jordan Valinsky. “10,000 American restaurants have closed in the last
     three months,” CNN Business, December 9, 2020

12   Irina Ivanova. “Meatpackers showed ‘callous disregard’ for workers’ lives,
     key congressman claims,” CBS Moneywatch, February 2, 2021

13   David Dayen. “Unsanitized: Key Senate Democrats may agree to
     McConnell’s corporate immunity measure,” The American Prospect,
     December 7, 2020

14   Center for Responsive Politics. “Agribusiness Summary,”
     OpenSecrets.org, accessed February 5, 2021

                                                                                                                                                                       17
F E E DTH ETRUTH .O RG

D R A I N I N G T H E B I G FO O D SWA M P

                                             18
You can also read