no third solution

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$1B to Dead Farmers

Add this to the list of government programs that lack the appropriate internal controls:

A recent GAO audit confirms that the USDA distributed over a Billion dollars to the estates or companies of dead farmers. According to the audit, the USDA approved payments “without any review 40% of the time.”

[T]he Agriculture Department depends on heirs and businesses to alert the agency to deaths and does not use other sources, such as Social Security records, to confirm eligibility.”

So in summary, the problem is thieves and liars (a category which may be expanded to include the recipients of farm subsidies). Thieves and liars, upon whose statements the USDA depends in granting subsidies. Granting subsidies to thieves and liars. The problem (at this level) is not the people who are playing by the rules – that’s another issue for another day. The problem is those people or companies who disregard those rules. And the inherent flaw in the political system is that it encourages this sort of behavior.

If the government isn’t going to police them, they sure as hell aren’t going to police themselves.

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About The Author

David Z
A lifelong Michigan resident, David holds a Bachelor's Degree from Central Michigan University and a Master of Arts Degree in Economics from Walsh College of Business & Accounting. Among other things, he is a market researcher, an avid snowboarder, beer-snob, former collegiate rugby player, bacon enthusiast and dog lover.

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2 Responses to “$1B to Dead Farmers”

  1. [...] Fourth, I see we are subsidizing dead farmers.  Of course, supporters of these kinds of programs would argue that the enforcement or administration is the problem, ignoring the glaringly obvious issue that these kinds of programs provide all sorts of unintended consequences and perverse incentives (like stealing). More here.  [...]

  2. [...] like – or god forbid – you have to send a check to make up a deficiency. All in order that some dead guy in Nebraska (seriously) can collect a million dollars in [...]

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