Influencing Government:Influencing Government:Food Lobbies and Food Lobbies and

LobbyistsLobbyists

Marion NestleMarion Nestle

What is LobbyingWhat is Lobbying

Lobbying: “any Lobbying: “any legallegal attempt by attempt by individuals or groups to influence individuals or groups to influence government policy or action”government policy or action”

Why it is doneWhy it is done

1.1. Promote interests of special interest Promote interests of special interest groupsgroups

2.2. Attempt to influence policies that Attempt to influence policies that will effect the groupwill effect the group

3.3. Communicate to government Communicate to government officials about current legislation officials about current legislation and interests of groupand interests of group

How it is doneHow it is done

Offer expertise on subject (why it has Offer expertise on subject (why it has not been more restricted)not been more restricted)

Make social contactsMake social contacts

Contribute to political campaignsContribute to political campaigns

Lawsuits and harassing criticsLawsuits and harassing critics

History of loopholesHistory of loopholes 1787- James Madison concerned over 1787- James Madison concerned over

potential disruptive actions of “factions”potential disruptive actions of “factions” 1911- Congress makes lobbying legal; 1911- Congress makes lobbying legal;

must register and state source of funds. must register and state source of funds. Trouble enforcing, lobbying seen as Trouble enforcing, lobbying seen as unstoppableunstoppable

Lobbyist spends 20% of time on activities, Lobbyist spends 20% of time on activities, receives $5000+/ 6 mths, have contact receives $5000+/ 6 mths, have contact with govt. officialswith govt. officials

If the person does not meet all of these If the person does not meet all of these criteria, then they are not considered criteria, then they are not considered lobbyists and do not have to registerlobbyists and do not have to register

Tried limiting gifts that are allowedTried limiting gifts that are allowed

No recreational trips or gifts worth No recreational trips or gifts worth $100+/yr$100+/yr

1.42 billion spent in 19981.42 billion spent in 1998 Estimated that 38 lobbyists spending Estimated that 38 lobbyists spending

2.7 million/ congress person2.7 million/ congress person

Government and agricultureGovernment and agriculture

At the end of WWII, farmers see At the end of WWII, farmers see USDA as “their department”, have USDA as “their department”, have most of the controlmost of the control

In the 70’s farmers begin to lose In the 70’s farmers begin to lose control to public, large companies, control to public, large companies, and advocacy groupsand advocacy groups

House changes committee members, House changes committee members, as well as duties as well as duties

Revolving door: people involved in Revolving door: people involved in government often do, have or will government often do, have or will work for lobbying firms or private work for lobbying firms or private companies. Done throughout all companies. Done throughout all branches (USDA, congress, FDA)branches (USDA, congress, FDA)

1998- 128 former members of 1998- 128 former members of congress were working for private congress were working for private lobbying firmslobbying firms

1971- USDA secretary and head of 1971- USDA secretary and head of Ralston Purina trade placesRalston Purina trade places

2001- Secretary of Agriculture 2001- Secretary of Agriculture appoints lobbyist from National appoints lobbyist from National Cattleman Beef Asso. as chief of staffCattleman Beef Asso. as chief of staff

WHYWHY

Often private positions pay better Often private positions pay better than government positions, where than government positions, where they get training.they get training.

Is it possible for people to forget Is it possible for people to forget former employers when they join the former employers when they join the government?government?

Michael Taylor- he got aroundMichael Taylor- he got around Lawyer for FDALawyer for FDA

Now part of aNow part of a

think tank in DCthink tank in DC

Monsanto’s VP of Public Policy, quits during controversy over GE foods

Back to Private practice

Food, Safety and Inspection Administrator in USDA

Investigation by General Accounting Office, no charges

Back to FDA as Deputy Commissioner for policy

Private Law firm for Monsanto

The money chainThe money chain

Hard to distinguish how much money Hard to distinguish how much money is spent because so much happens at is spent because so much happens at social eventssocial events

1998- estimated 67 million by 1998- estimated 67 million by tobacco, 52 million elsewheretobacco, 52 million elsewhere

Hard money vs. soft moneyHard money vs. soft money

Hard moneyHard money Given through Political Action CommitteesGiven through Political Action Committees PACs meant to collect and distribute money PACs meant to collect and distribute money

through voluntary campaign contributions. through voluntary campaign contributions. PACs that represent public interest, PACs that represent public interest,

safety or safety or consumer rights are the consumer rights are the minority!minority!

Federal Election Campaign Act:Federal Election Campaign Act: Totals are governed by legislationTotals are governed by legislation does not restrict total number of candidates does not restrict total number of candidates

that it can contribute to, or number of PACs an that it can contribute to, or number of PACs an individual can donate toindividual can donate to

1974- 608 PACs, 12.5 million1974- 608 PACs, 12.5 million1982- 3400 PACs, 83 million1982- 3400 PACs, 83 million1990- 4700 PACs, 370 million1990- 4700 PACs, 370 million1998- 4700 PACs, .5 billion1998- 4700 PACs, .5 billion

Money usually goes to the candidates Money usually goes to the candidates who are likely to support the groups who are likely to support the groups interests, and those of the people interests, and those of the people making the donationsmaking the donations

People argue over whether the People argue over whether the contributions change peoples minds, contributions change peoples minds, or whether the PACs choose to or whether the PACs choose to support people with similar interestssupport people with similar interests

95% of PAC money goes to incumbents, 95% of PAC money goes to incumbents, suggesting that the money is a reward for suggesting that the money is a reward for voting records. voting records.

Research in the 1980’s showed that people Research in the 1980’s showed that people who received funds from dairy PACs were who received funds from dairy PACs were twice as likely to vote for price supports. twice as likely to vote for price supports. Legislators rewarded by the dairy industry Legislators rewarded by the dairy industry for their voting record were 2.5 times as for their voting record were 2.5 times as likely to continue to vote that way.likely to continue to vote that way.

This was seen in a more recent study done This was seen in a more recent study done with sugar PACs; that those who voted for with sugar PACs; that those who voted for them got the largest donations, and those them got the largest donations, and those who received donations were likely to stay who received donations were likely to stay that way.that way.

Soft MoneySoft Money

The Election Campaign Act was only The Election Campaign Act was only for federal elections, so people get for federal elections, so people get around it by making donations to around it by making donations to state or national political funds that state or national political funds that candidates might like. candidates might like.

These donations have no cap, no These donations have no cap, no restrictions, and do not have to be restrictions, and do not have to be recorded.recorded.

Happy Birthday Senator!Happy Birthday Senator!

1996 Lobbying reform Law: 1996 Lobbying reform Law:

Cannot accept a gift worth $51+ or more Cannot accept a gift worth $51+ or more than $100 in one yearthan $100 in one year

Restricted the vacations that senators can Restricted the vacations that senators can acceptaccept

llOOPSOOPS-holes: can take trips of it is-holes: can take trips of it is

a.a. Sponsored by a political partySponsored by a political party

b.b. A fact finding missionA fact finding mission

c.c. Conference invited to speak atConference invited to speak at

1989-1990: House members took over 1989-1990: House members took over 4,000 trips sponsored (390 from 4,000 trips sponsored (390 from agriculture), over $500,00 in giftsagriculture), over $500,00 in gifts

1996-1997: 87 Senators. 356 House 1996-1997: 87 Senators. 356 House members, 2020 staff took over 8.6 members, 2020 staff took over 8.6 million worth in trips.million worth in trips.

*Most agricultural companies make *Most agricultural companies make donations to the Republican party donations to the Republican party because they are more likely to because they are more likely to support business.support business.

Banana exampleBanana example

Chiquita Banana Chiquita Banana 1998- gave $176,000 to Dems and 1998- gave $176,000 to Dems and

$360,000 to Reps in soft money through $360,000 to Reps in soft money through an insurance businessan insurance business

1998, EU put limits on banana imports, to 1998, EU put limits on banana imports, to try and help former colonies with their try and help former colonies with their bananas bananas

US reps file suit with WTO, saying it US reps file suit with WTO, saying it “violated international trade agreement”“violated international trade agreement”

US puts tariffs on EU luxury goods, and US puts tariffs on EU luxury goods, and WTO supportsWTO supports

WHYWHY

Government actions towards the banana Government actions towards the banana industry were different than those towards industry were different than those towards other productsother products

Reporters suggested it was an attempt to Reporters suggested it was an attempt to strengthen WTO power in disputesstrengthen WTO power in disputes

Could have been trying to help recoup Could have been trying to help recoup losses… BUTlosses… BUT

When EU offered to drop, Chiquita refused, When EU offered to drop, Chiquita refused, blamed Clinton admin, threatened blamed Clinton admin, threatened bankruptcy, and sued EU for $525 millionbankruptcy, and sued EU for $525 million

Sugar, SugarSugar, Sugar

Weird relationship between industry Weird relationship between industry and health.and health.

Lower prices: good for health, bad for Lower prices: good for health, bad for economyeconomy

Of 15,400 sugar cane and beer Of 15,400 sugar cane and beer farmers 42% of government farmers 42% of government subsidies go to 1% of farmerssubsidies go to 1% of farmers

Owners give to both parties, Owners give to both parties, although more to democrats.although more to democrats.

Sugarcane fields thought to block Sugarcane fields thought to block water to the Everglades, as well as water to the Everglades, as well as using workers from Caribbean using workers from Caribbean countries in conditions that have countries in conditions that have raised human rights concernsraised human rights concerns

Farmers resist attempts to be forced Farmers resist attempts to be forced into improving conditions, or return into improving conditions, or return land for Everglade restoration.land for Everglade restoration.

Conclusions Conclusions

Connections with government Connections with government officials allow agricultural producers officials allow agricultural producers to affect the legislation that is to affect the legislation that is pertinent to their productpertinent to their product

““Job of food lobbyists is to see that Job of food lobbyists is to see that government”government” Does not hinder sales of productDoes not hinder sales of product Creates “supportive sales environment”Creates “supportive sales environment”

This is done through the “revolving This is done through the “revolving door” and contacts made within the door” and contacts made within the field, as well as through financial field, as well as through financial contributionscontributions

Despite the legislation that is put into Despite the legislation that is put into place to prevent people in place to prevent people in government from being bought, government from being bought, lobbying continues to be a powerful lobbying continues to be a powerful force in decision makingforce in decision making