By MICHELE F. MIHALJEVICH

Indiana Correspondent

WASHINGTON, D.C. — Nine U.S. senators – including Sherrod Brown of Ohio and Debbie Stabenow of Michigan – are questioning purchases of pork products from foreign-owned companies made as a part of last year’s aid package for farmers impacted by tariffs.

Under the Food Purchase and Distribution Program announced July 24, 2018, the USDA’s Agricultural Marketing Service was expected to buy up to $1.2 billion in commodities – including pork – from U.S. farmers. The products were to be distributed through nutrition assistance programs.

In a May 29 letter to USDA Secretary Sonny Perdue, the nine Democrat senators stated the agency has awarded “lucrative purchasing contracts” to several companies with foreign ownership. USDA purchased $240,000 worth of pork products from Smithfield Foods, a subsidiary of Chinese-owned WH Group, the letter said. It also bought nearly $62.5 million in pork from JBS USA, owned by Brazil-based JBS SA.

USDA later permitted Smithfield to end its purchasing contract at the company’s request.

“Whether it’s the WH Group, which is closely tied to the Chinese government, or JBS SA, which is benefitting from the U.S.’ loss of market share in certain countries, it is counterproductive and contradictory for these companies to receive assistance paid for with U.S. taxpayer dollars intended to help American farmers struggling with this administration’s trade policies,” the letter said.

Also signing the letter were Sens. Tammy Baldwin (Wis.), Amy Klobuchar (Minn.), Patrick Leahy (Vt.), Patty Murray (Wash.), and Richard Blumenthal, Kirsten Gillibrand, and Chuck Schumer (N.Y.).

They said it is unacceptable that American taxpayers have been subsidizing the nation’s competitors through trade assistance. “We ask that you ensure these commodity purchases are carried out in a manner that most benefits the American farmer’s bottom line – not the business interests of foreign corporations.”

In a statement provided to Farm World, Brown’s office said he “doesn’t think taxpayer dollars should be going to big foreign-owned companies with a history of corruption.”

The USDA said it mandates and verifies that vendors provide only U.S.-origin agricultural commodities and products. That verification comes through vendor documentation or participation in the USDA’s Domestic Origin Verification program.

“We’re buying U.S.-produced agricultural products,” Perdue said. “The premise behind procurement is to take product off the market and support prices. This will help U.S. farmers. These are legal companies operating in the United States.

“This is no different than people buying Volkswagens or other foreign autos where their executives may have been guilty of some issue along the way. They still buy the cars. JBS is a Brazilian company operating in the United States, buying product from U.S. farmers.”

David Herring, National Pork Producers Council president, said it’s irrelevant whether the meat companies have some degree of foreign ownership.

“Since when is foreign ownership of U.S. companies that employ thousands of Americans, purchase millions of U.S. hogs, and produce U.S. pork a problem?” he wrote in an opinion piece for The Hill. “(With the program) the government gets safe, nutritious products at a great price to feed schoolchildren, the military, the needy, and federal prisoners.

“The program’s overarching goals are to provide demand stimulus for the entire U.S. pork industry. When the purchases are complete, they’ll take about a week’s worth of supply off the market – and deliver a nutritious food product to the needy.”