Thursday, September 30, 2010

Pigford and Rep. Steve King

Rep. Steve King issues a press release alleging massive fraud in the Pigford settlement. Chris Clayton at DTN calls it a red herring.  [Updated: another article describing both a press conference and some USDA reaction.]

Though I've voiced some qualms about Pigford (see the "Pigford" tab), I think Chris has the  better argument. I note in this post that Boyd talked of 20,000 farmers each in Alabama and Mississippi. I do think Chris errs in his apparent assumption that both husband and wife are eligible to file individual claims because I don't think they could file separate loan applications.

The bottom line to me is that Mr. Boyd has inflated the number of potential claimants and is fostering the false impression that every claimant will receive money.  Neither is true. Neither exaggerating the numbers of one's interest group and the benefits they might derive from proposed legislation is unknown inside the Beltway--if we believed the American Farm Bureau Federation we'd have many more farmers than the census reveals. I'm sure Rep. King wouldn't accuse them of fraud.

Based on the claims reviewed and rejected from the first Pigford settlement (which Mr. Clayton discusses in some detail), it seems there's a reasonable process to weed out claims which don't meet the evidentiary standards.

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