Farm Bill Lost Opportunities

December, 2018

Lincoln -- The 2018 Farm Bill is now law. History will look back on it as a lost opportunity to do something more to stem decline in rural America.

To me it is almost inexplicable why Senators compromised away their bipartisan approach so as to accept harmful, partisan provisions in the House bill. The Senate was in a good position in November to advise the House either to drop the offensive provisions or to extend the 2014 Farm Bill until the House changed political control in 2019. Instead, in December the Senate allowed multi-year cutbacks to the Conservation Stewardship Program (CSP) and expansion of wasteful commodity subsidies to those who are not farmers and have no financial need for them.

The latter is particularly troubling because the expansion of these subsidies will soon be capitalized into the price of land, making entry into farming more difficult for young farmers and likewise making it more difficult for current, struggling farmers to pay property taxes. A major reason why land prices do not fall with commodity prices is federal subsidy spending on behalf of all the wrong people.

This is not a partisan issue. Iowa Republican Senator (and farmer) Charles Grassley has been fighting for better targeting of the farm safety net for years, as have many Democrats. Non-partisan groups on both the right and left have also tried to cut back on this hugely counterproductive spending, which should be re-directed elsewhere in the Farm Bill. (CSP could certainly benefit from it.) For a more in-depth analysis, see this analysis from Taxpayers for Common Sense, in which two Nebraska farmers are quoted.

As a Nebraskan myself, I was disappointed to see the Lincoln JournalStar commend the Farm Bill's so-called compromises in an editorial. The only necessary compromises had already been made in the Senate's own bipartisan bill, which had earlier passed the Senate 86-11. If there was any topic the newspaper should have been editorializing on, it would be the failure of Nebraska's congressional delegation to stand up for rural Nebraska interests. Don Bacon, a member of the House Agriculture Committee, actually supported large conservation cuts; Deb Fischer, a member of the Senate Agriculture Committee, helped ensure the demise of the Grassley Amendment.*

The editorial was also premature in praising how the ultimate compromise resolved the issue of work requirements for SNAP (food stamp) recipients. No sooner was the Farm Bill finished than the Trump Administration did by regulation what it could not get in the Farm Bill. Will we see an editorial about that, eating earlier words?

The purpose of this post is not to point out the egg that is now on many faces, but to urge more attention to the real issues of the Farm Bill. Rural America is in steep decline. The disastrous effects of the Trump tariffs will require new legislation as soon as 2019 to try to keep farmers afloat. This means the legislation just passed may have to be opened up again. Maybe this time Congress will come closer to getting it right.

P.S. (January, 2019) One of the reasons the Senate felt under pressure to make bad December compromises was lobbying from farmer organizations to pass legislation, good or bad, to provide the necessary "certainty" to permit farmers to get new operating loans. But within days, Farm Service Agency offices shut down and remain closed due to the government shutdown. So much for the benefits of rushing through legislation.

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* Senator Fischer must also take some responsibility for Nebraska's high property taxes in that she led the effort, while a state senator in the Nebraska unicameral, to narrow the state sales tax base, a source of funding for property tax relief. Rather than relying on fuel taxes for road construction, she led the raid on the sales tax.




Kill the Farm Bill

December, 2018

Washington -- There was an opportunity, in mid-November, for Congress to pass a respectable 2018 Farm Bill. The Senate had already passed its bipartisan bill 86-11 and was in conference with a contentious, partisan House bill containing items that could never become law. The mid-term elections foretold a Democratic takeover of the House in January, dooming the House bill provisions.

All the Senate had to do was to hold firm on its bipartisan version and advise the House that the only alternative to accepting the Senate bill was to extend the existing legislation a year and start over next year with a Democratic House. Senate Democrats held leverage in that they could block 2018 action if the House balked.

It didn't happen. The Senate compromised away the bipartisan-sponsored Grassley Amendment, a reform of wasteful subsidies hurting small farmers, in exchange for deleting a House non-starter on the SNAP program. Moreover, USDA will implement the House SNAP provision anyway, by administrative action, and the new conference compromise not only drops the Grassley-Durbin provisions but opens up even more wasteful and counterproductive federal crop subsidies to cousins, nieces, and nephews of farmers.

The subsidy give-aways are so outrageous that six often ideologically opposed groups from the right, left, and center have joined together to bring attention to them: Taxpayers for Common Sense, National Taxpayers Union, R Street Institute, Americans for Prosperity, the National Sustainable Agriculture Coalition, and the Environmental Working Group.

The 2018 Farm Bill conference report should be voted down. Extend current law another year and start over. Give America the kind of Farm Bill it needs.

And what can Senate Democrats be thinking, to give up leverage when their party desperately needs a Rural Policy to compete for votes in the heartland? Not to mention looking foolish to compromise away something for nothing.




Truth, Ethics, and Citizenship at Syracuse University

December, 2018

Washington -- It was my pleasure and honor last week to be invited by Syracuse University to attend the Tanner Lecture Series on Ethics, Citizenship, and Public Responsibility.

The highlight of two days of events was the address by artist Robert Shetterly at a packed Setnor Auditorium. He was joined on stage by Dr. Mona Hanna-Attisha and Richard Bowen, whose portraits he recently painted in his series Americans Who Tell The Truth.

This was also the first time all of Rob Shetterly's 238 portraits had been assembled together, at the university's Schine Center, for a public show.

During the several events I met two portrait subjects for whom I have great respect for their work in the field of nutrition, Joan Dye Gussow and Stephen Ritz. Joan Gussow has been called the "matriarch of the eat-locally-think-globally" food movement. Stephen Ritz is an urban farmer who does wonders in his Bronx classroom and across the country.

Richard Bowen is my friend of several years; we are connected through the Government Accountability Project. His work a decade ago to try to save the financial world from its own self-destruction is being recounted in a new film by a French filmaker.

Until last week I had never met Dr. Mona Hanna-Attisha, the Flint, Michigan, pediatrician who revealed lead in the Flint water supply. We talked at length about our common experiences in getting data out of government agencies that did not want to give them up, and how we both had to do data analyses on our own, over government objections. She is a force of nature and, as part of an Iraqi immigrant family, an example of what immigrants contribute to America.

My favorite moment from the Tanner Lecture was when Dr. Mona, as she is known, was asked by a person in the audience if she ever felt intimidated by all the local, state, and federal officials who initially denounced her work. She said no, not when she reflected on how important her work was to Flint's children. She actually laughed and said her attitude was "bring it on." As she spoke last week, criminal trials in Michigan continued, fixing responsibility for the Flint public health disaster, a validation of her efforts.

Many thanks especially to Dr. James Clark for his part in organizing these events, to Dr. Julia Ganson of GAP, to Mr. Lynn Tanner for sponsoring the lecture series, and to the Maxwell School of Citizenship and Public Affairs at Syracuse for its leadership in ethics.



Iron Triangles: Part IX

November, 2018

Washington -- A formidable iron triangle is buckling and may be about to break. As described* in earlier posts, its three corners consist of an industry that profits from the exploitation of federal student aid programs, the U.S. Department of Education, and the U.S. House Committee on Education and the Workforce.

Several successful lawsuits have weakened the triangle and others are pending. The suits have been brought by student loan borrowers, state attorneys general, the Consumer Financial Protection Bureau, and non-profit consumer protection organizations.

Those benefiting from the triangle are fighting back by moving key people through the triangle's revolving doors to shore up House and Department of Education staff, by delaying implementation of court orders, by suppressing audit and program review findings, by cutting off inter-agency agreements, and by attempting to preempt state consumer protection laws.

The newest threat to the iron triangle's grip is the upcoming shift in majority control of the House of Representatives. Newly energized Democrats, if they choose to do so, can hold oversight hearings with subpoena powers to look at the nation's student loan mess, especially to see how the Department of Education's corner of the iron triangle contributed to it.

The oversight hearings will likely be led by the House Government Oversight and Reform Committee and the House Education and the Workforce Committee. Other committees may also conduct oversight, as the student loan crisis extends to committee jurisdictions involving veterans, financial services, and appropriations.

The hearings should be conducted before, or at least in conjunction with, the reauthorization of the Higher Education Act. A goal of the hearings should be to determine whether the problems at the Department of Education can be fixed or if the Department is so irreparably broken that Congress must look to other countries, as many are suggesting, for more workable student aid models.

A first question must deal with the cause of the dysfunction. There can be no dancing around the role of corruption and racketeering.** Why, when fraud and perjury are discovered, does nothing happen to remedy it? Indeed, this should be the focus of oversight hearings.

I have worked at many different positions in higher education: in the institutions, in the states, in the associations, in the Senate, in the Department of Education. My work has extended to eleven years of litigation leading to the successful precedent that has enabled several of the aforementioned lawsuits. It is my sad conclusion, after all this, that the Department of Education has been captured, through corruption and racketeering, by the industry it is supposed to regulate, and that there is no alternative but to start over.

I'll be ready to assist however I can in oversight first, then reauthorization.

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*See Iron Triangles, Parts I - VIII

** Racketeering has previously been alleged in student loan lawsuits brought by borrowers, but without the particularity that may now become available through oversight hearings. The hearings will afford an opportunity to look at patterns of racketeering that link revolving door conflicts of interest to fraud and perjury over a period of years, for which there is ample evidence. Another area ripe for racketeering oversight is obstruction of justice, which comes into question when the Department of Education terminates information sharing agreements essential to prosecution of fraud, seeks to obstruct state consumer protection law enforcement through federal preemption, and defies court orders to implement student loan forgiveness and cancellation.

Democrats and Rural Voters

November, 2018

Washington -- The 2018 mid-term elections are nearly over (a few contests are still in doubt). The question that remains is whether the results constituted a Democratic blue wave or a more modest blue ripple.

My conclusion is that Democrats underperformed and will have to modify strategy for 2020 if they hope to take the the Senate and the White House. Democrats in 2018 did well in urban and suburban areas, but showed deep and persistent weakness in rural areas.

Democratic victories for governorships in Kansas and Wisconsin were exceptional, but attributable to voter aversion to Republican candidates Kris Kobach and Scott Walker more than a rejection of Trumpism. Democratic senators Joe Donnelly, Heidi Heitkamp, and Claire McCaskill all lost badly after Donald Trump went into their states and brought out the rural vote against them. Jon Tester survived in Montana only because he is a farmer himself and has a certain immunity from claims that he is out of touch with rural America.

I am far from alone in this reading of the election returns. David Leonhardt writes: "Democrats don’t need to win in most rural areas. But they do need to avoid losing by 50 or 60 percentage points....The Democratic Party simply cannot write off nonmetropolitan America — and try to overwhelm it with a rising urban and suburban coalition."

Michael Tomasky writes similarly: Democrats "need a rural policy...including an emphasis on exports, economic diversification and conservation." Not to mention opioids, nutrition, and broadband.

E.J. Dionne suggests this: "For the longer term, Democrats need...a new agenda for rural, small-town and small-city America. Confining opportunity to the large metropolitan areas will deepen national divisions and, by the way, foster long-term Republican control of the Senate."

The Guardian quoted
Tom Vilsack about the "failure of the Democratic party, particularly its national leadership, to offer a vision to rural voters who feel the party has little to say to them and is focused on urban supporters."

As if to hammer this lesson home for Democrats, there were a few House candidates who went after the rural vote and won. Lauren Underwood in Illinois went door to door to farmers who said politicians had not done that in years, and she won. Three Democrats in Iowa held their rural losses down by reminding voters of the effect of the Trump tariffs on commodity prices, and they won.

Contrast this with the Claire McCaskill debacle in neighboring Missouri. She went into rural areas actually campaigning against "crazy Democrats" and, to no one's surprise, was defeated badly. If she had had a Democratic platform for rural America, the outcome might have been different. Likewise, Iowa Democrats could almost certainly have defeated Kim Reynolds and Steve King had there been any national Democratic leadership on rural issues.

This is ironic because there is great discontent in rural America and Senate Democrats wrote a decent 2018 Farm Bill – blocked by Trump – that they could have campaigned on. It was an opportunity wasted.

There are voices counseling otherwise, of course. Some are saying that Democrats can win only by exciting the urban and suburban base to ever-higher turnout and that it is a waste of time to try to persuade rural America to give Democrats a look. This is foolish and will lead once again to Democratic underperformance. Why not both high turnout and persuasion?

Remembering Family on Armistice Day

November, 2018

Washington -- World War I touched all four of our paternal (Oberg and Zicafoose) and maternal (Spader and Bergstrom) families.

Ralph Zicafoose was wounded twice in the first fifteen minutes of combat. Herbert Bergstrom was also wounded and received the Purple Heart. Oscar Spader was gassed and never fully recovered. Charles and Fred Oberg died from influenza at Army Camp Funston (now Fort Riley).

Today marks the 100th anniversary of the end of the war. To some of us, it will always be Armistice Day (what we called it as children) as well as Veterans Day.

In Paris today, the president of France gave a fitting memorial speech, reminding us of what it means to be patriotic.

Four Great Charities

November, 2018

Washington and Lincoln -- Soon upon us is the end of the year and time for thinking about responsible citizenship through charitable giving. Here are four of my favorite charities that will do wonders with donations.

Veterans Education Success (VES).

This charity was started by a former Senate staffer, Carrie Wofford, a few years ago to help veterans avoid being taken advantage of by unscrupulous post-secondary schools and predatory loan providers. VES now has dozens of veterans organizations that work closely with it to advise veterans and to protect taxpayers from misuse of GI Bill funds. As a veteran myself, I know the importance of VES's work.

Bikes for the World.

This Washington-area charity was led for many years by Keith Oberg (no relation that we know of). It collects used bicycles, repairs and refurbishes them, and ships them to impoverished areas around the world. It works closely with knowledgeable people in many countries to learn exactly what is needed for the local populations.

Growing Home.

This charity, long and capably led by Harry Rhodes in Chicago, takes vacant lots in run-down urban areas, converts them to organic agriculture, and trains local residents in how to grow healthy food and market it successfully. It has a remarkable record in changing lives.

Double Up Bucks.

This is an effort currently led by Vanessa Wielenga of the University of Nebraska Extension Service. It makes SNAP recipients' resources go further when they buy healthy, local food in Nebraska. In so doing, it helps grow local and regional food markets. Donors get a double bang for their own bucks in that they are helping needy citizens as well as helping local farmers.

Think about these four charities in the days ahead. Click on their titles for donation information.

Congress: No Clue, No Surprise

November, 2018

Washington -- Three political scientists got much attention this week with their study, written up in the New York Times as "Congress Has No Clue What Americans Want," subtitled "People in the U.S. House and Senate Have Wildly Inaccurate Perceptions of Our Opinions and Preferences."

The three academics polled voters in congressional districts on certain topics and then surveyed the respective congressional offices' senior staffers, only to find huge differences in how the two groups viewed the issues. Republican staffers were most out of touch with their constituents, but Democratic staffers were not far behind.

This is not a surprise. Some of my colleagues and I have been working for over a year on rural issues in the Farm Bill, attempting to help Congress improve conditions in rural America. We prepared a list of six issues reflecting what we believed were real needs and concerns in areas touched by the Farm Bill. We intentionally avoided use of hot-button partisan and ideological language and tailored our solutions so that they could be viewed as pragmatic and acceptable to both Democrats and Republicans. We tested our ideas with both liberal and conservative rural advocacy groups and generally got plaudits for identification of issues and creativity of solutions.

Mostly we approached Democratic staff on Capitol Hill, whose senators and members were working on the 2018 Farm Bill. Often we got a cool reception, if we could get in to see anyone at all. It was obvious that staff were more attuned to issues as presented to them by interest group lobbyists. They were not so accustomed to citizens coming to them with ideas that reflected the needs of their constituents.

For example, for the Farm Bill's largest program, SNAP (food stamps), we recommended that nutrition standards be raised, either by giving recipients incentives to purchase more nutritious foods or by using the higher WIC program standard for SNAP. Currently, much of SNAP goes to purchase of sodas and junk foods. We found little interest on the Hill in nutrition, because this year's SNAP battle was going to be fought politically over work requirements. We felt vindicated when a major study showed nutrition could be improved and billions of tax dollars could be saved through the kind of solutions we offered, but we were disappointed that Congress showed no interest.

Likewise, we offered Democratic staffers the joint analyses of USDA and the Federal Reserve Bank of St. Louis about how to create jobs and economic development in rural America through more attention to local and regional food markets. We passed around copies of the recommendations as compiled in the book "Harvesting Opportunity" because no staffers we talked to had ever heard of it or were familiar with the ideas in it.

We also offered options on crop insurance reform, soil health and conservation, assistance to young farmers, and revitalization of the Extension Service to fight obesity and diabetes epidemics.

There were occasional exceptions in our visits when we found sympathetic ears. Two staff were particularly welcoming and leveled with us as to what was going on. The Democratic political leadership in Congress had decided soon after the 2016 elections that Democrats would not offer any "Washington" initiatives on rural America. Democrats up for election in 2018 would be on their own. In other words, the national Democratic leadership had already conceded that the party was perceived to be out of touch on rural issues and was choosing not to compete for the rural vote.

This was ironic, we thought, because if there is anywhere Democrats need to be offering constructive ideas to get votes, it is rural America. It turns out to be doubly ironic because Senate Agriculture Committee Democrats, under ranking member Debbie Stabenow, actually produced a respectable 2018 Farm Bill with many good features for rural America – far better than the House version – and achieved Senate passage on a bi-partisan 86-11 vote, no small accomplishment.

You would never know that on the hustings, however. There is no coherent Democratic platform on rural America. There is little to show that Democrats listen to rural constituents or care about the Farm Bill. There is everything to show that the study by the political scientists is largely on target in its conclusion that "Congress Has No Clue as to What Americans Want." That was certainly our first-hand experience as well.

Perhaps it is for the better that the Farm Bill has not yet passed Congress in final form and will have to be reconsidered either in the upcoming lame duck session or next year, in a new Congress that can start over on it. Perhaps next time around, if lessons are learned from the coming election returns and from insightful political science research, as cited above, there will be more attention given to actual constituent opinions and preferences.

Elections

October, 2018

Berlin and Lincoln -- I've been in both cities in the past sixty days, concerned and saddened by electoral developments.

German elections in Bavaria and Hesse have signaled understandable displeasure with the national ruling coalition of CDU/CSU/SPD. The coalition's days are numbered. The SPD especially took a heavy hit, mostly undeserved in my opinion. The SPD was forced into the coalition when the FDP refused to help form a government after the 2017 elections. Someone had to act responsibly, and SPD leaders did. They have paid a heavy price for trying to do the right thing.

A glimmer of good news shone through after the Bavarian election when voters rejected the divisive politics of CSU leader Horst Seehofer. The CSU lost badly and more of its defectors moved to the Greens than to the even more divisive AfD. But in Hesse, two weeks later, it was the CSU's sister party, the CDU, that lost voters with largely the same pattern of defection. So much for taking solace in Seehofer's bad showing, unfortunately.

It is not in America's interest to see instability in German governments, especially the growing tilt toward the extreme politics of the AfD. Does anyone remember why we fought WWII? It was against fascism in all its ugly and murderous varieties. U.S. Secretary of Defense James Mattis does, but he may soon be out because he is a voice of reason and stability in an administration that craves disruption at any cost, even at the risk of confusing our friends with our enemies, and even losing sight of who we are and what we stand for.

Which leads to thoughts of upcoming elections in Nebraska, where voters seem pleased with the Trump Administration's foreign policy, even as farm income is being hurt badly by Trump's backfiring tariffs. Nebraska has just approved a new self-deprecating tourist slogan ("Honestly, it's not for everyone") and now is about to vote for self-destructive government policies at probably every level. Even high property taxes, especially in the agriculture sector, will not be enough to make Nebraskans think twice about whom they put and keep in office. My alternative slogans: "Nebraska: Formerly Known as The Good Life" or "Nebraska: Great Downhill Voting."

The most interesting race in Nebraska might be the one for state auditor, where the incumbent Charlie Jansen is the heavy favorite despite his practice of spending his working hours at a local tavern, drinking with others also on the taxpayer's payroll. Thanks to the Omaha World Herald for letting voters know. And thanks to the Lincoln Journal Star, especially reporter JoAnne Young, for her revelations about the dismal state of affairs in the governor's code departments. Not that voters seem to care.

A difference between current German and Nebraskan voting is that Germans seem more inclined to throw out the party that governs badly. Or perhaps Nebraskans are simply okay with what they vote for, expecting little. A possible, all-too-true headline and slogan on the day after elections: "Nebraska: Resigned to Its Fate as a One-Party State."

Democrats Haven't Learned

October, 2018

Washington -- Three weeks out from the mid-term elections, it looks increasingly certain that Democrats are going to fall short. Short of performing as they should, at least. Whether that means not taking the Senate, or even the House, is not clear but there will not be the kind of decisive Democratic victory that should be in the offing given the chaos, ineptitude, and scandals of the other party.

The reason for this is a failure of Democrats to compete for votes where elections are increasingly decided: rural America. That should have been the lesson of 2016 for Democrats, but the party has been slow to learn. Once again, Democrats are not showing up and not aggressively pursuing voters in rural areas with policies and passions to prove their bona fides with this critical population.

What is lacking in the 2018 Democratic election strategy is an understanding that Democrats do not need to win the rural counties and precincts outright, only to be competitive so that an overwhelming rural vote for Republicans does not cancel out Democratic strengths elsewhere.

Who are these voters who should be targeted? Rural voters who voted for Obama in 2008 and 2012 but switched to Trump in 2016. Getting them back should be the highest priority.

Have Democrats even noticed, let alone pounced on the fact that the President and Congressional Republicans have already set the table for Democrats to eat the Republicans' lunch in the heartland? Consider:

• Falling commodity prices caused by the Trump tariffs
• Rejection of farm groups' pleas for "trade not aid"
• Hostility toward soil conservation programs, even attempting to kill the nation's largest conservation program (CSP) for working farms
* Slashing of USDA programs important to rural America, including a USDA reorganization to weaken agriculture's voice in Washington
• Holding the entire 2018 Farm Bill hostage to cynical politics over SNAP work requirements, which already exist

Simultaneously, remarkable work by Democratic Senator Debbie Stabenow, ranking member of the Senate Agriculture Committee, and her Democratic committee members and staff, have produced an unexpectedly good, bipartisan Farm Bill widely praised throughout rural America, which is getting desperate for passage of a bill before current programs expire and throw rural economies into turmoil. Consider the bill's

• Assistance for local and regional healthy food markets, creating jobs
• A focus on nutrition to combat the epidemics of obesity and diabetes
• Farm income safety-net reforms to help young farmers
• Expansion of topsoil conservation programs
* Broadband access for the heartland
• Bipartisan support, including that of Republican chairman Senator Pat Roberts
• Senate passage, 86-11

In short, through the work of Senator Stabenow and her Agriculture Committee colleagues, Democrats have set an inviting table for themselves to compete throughout rural America.

But you'd never know any of this by looking at the Democratic National Committee's web page on rural America, which makes it seem as if the last interest Democrats had in the heartland was creation of the Rural Electrification Administration back in the 1930s. One looks in vain among thin gruel platitudes for even a single mention of the 2018 Farm Bill and its urgency.

New election analyses by pundits likewise show that Democrats have a curious, wrongheaded strategy. Democrats are trying in vain to win congressional districts that are at best a long shot, on issues that ignore the tables set before them, while neglecting the rural vote within districts that are competitive. While it is good to compete everywhere, it must be on issues voters care about most.

There is a lesson to be learned from just a few weeks ago: the special election loss of Democrat Danny O'Connor in Ohio's 12th district. All O'Connor needed to win were a few more votes in his rural precincts, which he could have gathered with a little more presence and more passion about rural issues. Had he simply hammered on the Conservation Stewardship Program – farmers really care about topsoil – or on nutrition or regional markets, he would have won. He still can win in November, but he needs to show he cares about what concerns his rural voters.

Huge numbers of heartland voters are disgusted with the president but want to be able to vote for something positive, not just against the negatives. They need a reason to vote Democratic. So far, the Democratic Party is slow to offer it, and looks headed toward another election of underperformance, all for lack of presence and passion about the concerns of rural America.