Five pet food related businesses have received over $159 Million in tax credits, two companies received more than $5 Billion in federal loans. It pays to be in the pet food business.
Should pet food manufacturers, using ingredients whose legal definitions violate federal law, be given a tax credit? Should a major animal feed ingredient supplier be allowed to lobby Congress resulting in more than $1 Billion of business “facilitated by the federal government” and more than $5 Billion in federal loans?
On a wonderful website titled GoodJobsFirst.org is a valuable tool called ‘subsidy tracker’. The website’s subsidy tracker documents the financial subsidies provided by government received by many of the top businesses in the U.S. Included in their list are five pet food related companies; Mars/Mars Petcare, Colgate Palmolive/Science Diet, Nestle/Purina, Darling International and Cargill.
Brace yourself.
Mars Petcare
Location: North Carolina
Year: 2008
Subsidy Value: $189,590
Location: Ohio
Year: 2009
Subsidy Value: $235,117
Location: Arkansas
Year: 2010
Subsidy Value: $505,670
Location: North Carolina
Year: 2010
Subsidy Value: $376,247
Location: North Carolina
Year: 2011
Subsidy Value: $94,979
Location: North Carolina
Year: 2011
Subsidy Value: $87,500
Location: North Carolina
Year: 2012
Subsidy Value: $539,237
Location: North Carolina
Year: 2013
Subsidy Value: $308,020
Location: North Carolina
Year: 2013
Subsidy Value: $79,809
Location: North Carolina
Year: 2014
Subsidy Value: $278,129
Location: North Carolina
Year: 2014
Subsidy Value: $58,839
Totaling $2,753,137.00 Million in tax credits, from just 3 states, over 8 years. North Carolina was the most generous state with Mars gifting the pet food company $2,012,350.00 in state tax credits.
Hill’s Pet Nutrition/Science Diet
Location: Kentucky
Year: 2002
Subsidy Value: $10,000,000
Location: Indiana
Year: 2005
Subsidy Value: $3,000,000
Location: Kentucky
Year: 2011
Subsidy Value: $8,300,000
Location: Kentucky
Year: 2012
Subsidy Value: $8,300,000
From just two states, Hill’s Pet Nutrition has received $29,600,000.00 in tax credits over a ten year time frame. Kentucky alone has given Hill’s/Science Diet more than $26 Million.
Purina
Purina has so many gifts of tax credits from multiple states, they are listed per state.
New York – Total $5,010,000.00
Year: 2006
Subsidy Value: $1,415,000
Year: 2007
Subsidy Value: $1,595,000
Year: 2015
Subsidy Value: $2,000,000
Iowa – Total $1,650,000.00
Year: 2002
Subsidy Value: $150,000
Year: 2006
Subsidy Value: $1,000,000
Year: 2011
Subsidy Value: $500,000
Wisconsin – Total $1,100,000.00
Year: 2007
Subsidy Value: $100,000
Year: 2011
Subsidy Value: $1,000,000
Colorado – Total $1,432,943.00
EZ tax credits in 2011 or 2012; a breakdown by year was not provided.
Subsidy Value: $673,260
Year: 2013
Subsidy Value: $317,736
Year: 2013
Subsidy Value: $12,931
Year: 2013
Subsidy Value: $6,500
Year: 2014
Subsidy Value: $20,559
Year: 2014
Subsidy Value: $275,438
Year: 2015
Subsidy Value: $91,547
Year: 2015
Subsidy Value: $33,872
Year: 2015
Subsidy Value: $1,100
Oklahoma – Total $2,149,951.00
Year: 2007
Subsidy Value: $305,874
Year: 2008
Subsidy Value: $389,403
Year: 2009
Subsidy Value: $430,241
Year: 2010
Subsidy Value: $412,685
Missouri – Total $721,630.00
Year: 2007
Subsidy Value: $209,263
Year: 2008
Subsidy Value: $240,326
Year: 2009
Subsidy Value: $272,041
Also in Missouri, we learn that Purina was fined $395,000.00 in Missouri by the Environmental Protection Agency. No explanation provided to why EPA fined the pet food company.
And from the federal government to Purina…
Year: 2011
Subsidy Value: $555,454
Program Name: Payments for Specified Energy Property in Lieu of Tax Credits
Project Description: Solar Electricity
Over a thirteen year time frame, Purina has received $12,619,978.00 in tax credits in six states and the federal government.
Sub Total:
For just these 3 pet food companies, over the past thirteen years: $44,973,115.00 in tax credits.
But there’s more…two pet food ingredient providers.
Darling International (rendering company)
Multiple state tax credits since 1999 (majority are from 2008 to present) and federal grants
Total: $1,501,452.00
Federal loans: $10,250,000.00
Cargill (ingredient provider)
Multiple state tax credits since 1992 (majority are from 2011 to present) and federal grants
Total: $112,909,112.00
Federal loans: $5,122,824,698.00
Cargill was also one of the companies listed on the website InfluenceExplorer.com. This website provides documented information to see how political donations and lobbying efforts “influence the political system.” The information provided on Cargill was…
Contributions (“Includes PAC and individual contributions to federal committees made between Jan. 1, 2007 and Dec. 31, 2012.”): $1.1 M
Lobbying (“Disclosed spending on federal lobbying from 2007 to 2012. Data downloaded from the Center for Responsive Politics and analyzed by the Sunlight Foundation.”): $8.5 M
Total Influence (combination of two above): $9.6 M
Hill Coverage (“Average percentage of incumbent members of Congress receiving contributions from the organization over the course of the 2008, 2010 and 2012 election cycles.”): 14%
Federal Business (“Company business generated or facilitated by the federal government.”): $1.1 B
Federal Support (“Government support for businesses, including loans, loan guarantees, grants, and money advanced to companies in the aftermath of the financial crisis through an array of mechanisms.”): $5.4 B
In other words, Cargill spent $9.6 Million in lobbying efforts and political contributions. For their lobbying efforts the company was rewarded with $1.1 Billion in government business. With an added bonus of federal loans in excess of $5 Billion. That’s a nice return on investment.
Grand Total
For only five pet food/ingredient businesses, total tax credits received over mainly over the past twelve years…
$159,383,679.00
For only two pet food ingredient providers, federal loans provided mainly from 2008 to present…
$5,133,074,698.00
It pays to be in the pet food business.
Wishing you and your pet(s) the best,
Susan Thixton
Pet Food Safety Advocate
Author Buyer Beware, Co-Author Dinner PAWsible
TruthaboutPetFood.com
Association for Truth in Pet Food
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Marge Mullen
August 22, 2016 at 2:18 pm
YIKES!! Thanks Susan for the info….will post to several groups.
Marge
NRJ
August 22, 2016 at 2:56 pm
Once again I am sickened by our government.
Nancy
linda
August 22, 2016 at 6:15 pm
Sick
Dianne & pets
August 22, 2016 at 9:37 pm
How is it that the profitable companies get all of our hard earned dollars and the companies that genuinely need a loan are turned down. I wonder, if they stopped earning money would they lose the loans and tax credits. Maybe the government should be reminded that no matter how they look at it, ultimately, the money these companies get to give them come from the tax payers and the money they are giving out comes from the taxpayers. Maybe the taxpayers should start to consider how much power they actually have.
Cheryl Bond
August 24, 2016 at 10:14 am
Yup! You got that right!!!!!!