DRAINING THE BIG FOOD - Feed the Truth
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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
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
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
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
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
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
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
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