NEW YORK The building is one of the finest on Central Park West. Celebrity residents. Park views. Units priced at up to $24 million. It is most definitely not a farm.
But last year, the U.S. government sent $9,070 in farm subsidies to an apartment here.
Even the woman who got that money isnt exactly sure why.
I really dont know, Lisa Sippel said.
Sippel does own farmland, but its in Missouri. Somebody there does the work.
till, Sippel gets the federal payments, which were originally meant to keep small farmers afloat. Im kind of an absentee landlord, she said.
The money, it turns out, comes from one cockeyed farm-aid program that was supposed to end in 2003. It didnt: Congress kept it alive and now hands out almost $5 billion a year using oddly relaxed rules.
As long as recipients own farmland, they are not required to grow any crops there. Or live on the farm. Or even visit it.
The program is one of Washingtons walking dead temporary giveaway programs that have staggered on years beyond their intended expiration dates. Letting them live is an old and expensive congressional habit, still unbroken in this age of austerity.
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The Essential Air Service program, a subsidy for flights to small airports, was supposed to expire in 1988. Its still alive. The widely popular research and development tax credit has been a temporary measure since 1981. It was renewed, along with more than 50 other temporary programs, in Januarys fiscal cliff deal.
And buried among the USDAs array of aid programs for farmers there is this death-cheating, farming-optional farm subsidy.
It has become a case study in how a temporary giveaway turns permanent, but it began in 1996 as an idea to save the government money.
A penny-pinching Republican Congress wanted to eliminate the complex system of subsidy payments that had begun in the New Deal, but it didnt want to make farmers quit cold turkey.
So Congress devised a kind of nicotine patch for farm subsidies. The new program would pay out smaller and smaller amounts over seven years. Then it would end.
To make the changes more palatable to farmers, Congress loosened the requirements for getting the payments. They would be calculated based on a farmers past harvests. In the future, farmers could grow the same crops. Or different ones.
Or no crops at all. The money would still come.
These are not welfare payments. These are declining market transition payments, said then-Rep. Pat Roberts (R-Kan.), the architect of the plan. When those payments finally ended, Roberts promised, Congress would have finally gotten the dead hand of government out of the business of farming.
Roberts seven-year plan held up. For about two years.
Then, in 1998, farm income fell. A drought crippled harvests. The farm lobby howled for help. Congress complied by adding $2.9 billion in extra payments. The declining transition payments would no longer decline before their end date.
In 2002, Congress got rid of the end date, too.
Farm income was on another downswing then. The budget-cutting fever of the 1990s had passed. Congress renamed these giveaways direct payments no longer a transitional measure but an expected, regular transfer from taxpayer to government to farmer.
Roberts voted nay as his temporary payments became permanent.
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Direct payments make no sense at all, said Harwood Schaffer, a professor who analyzes farm policy at the University of Tennessee. When corn is $2 a bushel or $7 a bushel, they get the same direct payments. So at $7 a bushel it simply increases their profit.
Recent analyses of the program have found that it subsidizes some people who arent really farming: the idle, the urban, and occasionally the dead.
The idle include recipients at 2,300 farms that havent grown crops at all for the past five years, and 622 that havent grown anything for 10, according to the Government Accountability Office.
In addition, the program has paid hundreds of millions to people who lived more than 300 miles from the farmland they owned. Thats legal, under the programs rules, but only if the owner shares in the farms financial risks and remains actively engaged in farm decisions from afar.
But these rules do not seem to be strictly enforced.
I am not the farmer. But I have a farmer. And I dont understand the mechanics of the [payment] whatsoever, Catharine Snowdon said.
Snowdon lives in Washingtons Georgetown neighborhood, but a trust at her address receives direct payments tied to a farm on Marylands Eastern Shore.
Last year, the government sent $1,208, according to Agriculture Department data compiled by the Environmental Working Group.
I think its soybeans every year and corn some other years, Snowdon said when asked about the farms management. She said she had never investigated exactly why the payments came. Its not a significant amount of money for me to get excited about it.
The Environmental Working Group found at least 24 addresses in the District, and at least 21 in Manhattan, that received more than $1,000 in direct payments last year.
The Agriculture Department says it is possible for these urban recipients to turn down these payments.