The hidden money fueling the pork industry’s fight to keep pigs in tiny cages

Russ Kremer is a longtime hog farmer in the Missouri Ozarks, where his 2,000 pigs have plenty of space to roam on his 150 acres. He doesn’t feed them antibiotics, and you won’t find a single animal in a cage. Kremer is decidedly anti-industrial hog farming.

Whenever he sends his pigs to slaughter, like every hog farmer in the US, he’s legally required to give over a small share of his sales — 35 cents for every $100 — to the National Pork Board.

If you’re not a hog farmer, you might not have heard of the National Pork Board. But you’ve probably seen its ads. Its job is to promote pork to consumers, and it’s the group behind the once ubiquitous slogan “Pork. The Other White Meat.”

The idea behind the National Pork Board — financed with mandatory contributions from Kremer and virtually every other American hog farmer — is that all pork producers should benefit from this kind of prominent marketing to buoy their product. So a dollar or so from each pig should be worth it.

The group’s funds, by law, are limited to advertising and research. They specifically can’t be used for political lobbying to influence legislation. There’s a good reason for that: While boosting pork consumption should help any pig farmer, when it comes to laws and policies, some benefit certain types of producers over others, such as more industrial producers. And because virtually all farmers have to pay into the fund, it seems only fair to keep it policy-neutral.

It’s essentially a tax, one that consumers indirectly pay each time they buy any kind of pork, too. “I’m not opposed to paying a tax if the tax does us some good,” Kremer told me. But Kremer and many of his fellow anti-industrial hog farmers believe it is not doing good. That’s because the National Pork Board has moved millions of their dollars to the largest industrial pork lobby in America.

It’s called the National Pork Producers Council, and over the last 70 years, it has emerged as the loudest advocate for factory-farm style hog production.

Since 1999, NPPC has spent nearly $45 million on federal lobbying on a variety of issues — including many of the kinds of policies that more humane and sustainable hog farmers like Kremer tend to benefit from, like antibiotic restrictions, pollution regulations, and protections for independent farmers who sometimes get screwed over by big meatpackers. In recent years, the group has also thrown millions of dollars into lobbying for the very unpopular practice of keeping pregnant pigs in tiny crates — a method that big, industrial operations are much more likely to use than smaller farms.

Kremer, for his part, is the former president of the Missouri Farmers Union — the state chapter of the National Farmers Union, which is a small but mighty counterweight to the Big Ag lobby groups like NPPC.

The two organizations — which are legally required to operate as separate — have a very close relationship that has allowed the National Pork Producers Council to capture tens of millions of dollars from the Pork Board over the past two decades. According to a new, exclusive analysis of public financial transactions gathered by the Accountability Board — a nonprofit that advocates for higher-welfare animal farming — the National Pork Board has paid the National Pork Producers Council $66 million with its farmer contributions since 2004. Of the $66 million, nearly half of these financial transactions have not been previously reported in the news media.

Critics say the financial transactions between the two organizations have effectively created something of a reverse Robin Hood effect in the pork business, in which an industrial farming lobby group has taken millions of dollars from smaller farmers only to use it against them and their typically more responsible ways of raising animals.

Or, as Kremer calls it, a “kick in the groin.”

And it amounts to a meaningful chunk of the pork lobby’s overall budget: According to Vox’s review of the financial documents, some 18.5 percent of NPPC’s revenue has come from farmer checkoff dollars since the early 2000s.

The money stems from two sources: highly profitable trademark deals and a sizable real estate arrangement. Over the past 22 years, the pork promotion board has paid a remarkable $59.5 million to own and license a trademark package and another $6.5 million in rent to its landlord, the National Pork Producers Council. Although one of these cash transfers has been the subject of a lawsuit — and the organizations’ intertwined relationship has been repeatedly criticized by opponents of industrial agriculture, lawmakers, federal agencies, and farmers forced to pay the money — the groups’ close relationship has persisted.

The National Pork Producers Council didn’t respond to several detailed questions about the relationship and financial arrangements over email; in a statement, a spokesperson said that the deals between the organizations had been approved by the USDA and a legal challenge to one of the deals had been dismissed in court.

The National Pork Board also didn’t respond to an interview request for this story, or to detailed questions over email. And the US Department of Agriculture, which oversees the National Pork Board and has approved these deals, declined an interview request for this story, and did not respond to detailed questions over email.

The long saga of redirected pork-industry dollars shows how the interests of industrialized farming can find ways to overwhelm the interests and values of smaller-scale producers — and operate with relatively little government scrutiny. It also raises meaningful questions about whether the USDA is protecting the interests of American food consumers and farmers across the country, or just guarding the specific agenda of the largest players in the ag industry.

The idea of a marketing fund that farmers pay into wasn’t new in 1985, when Congress created the National Pork Board. The egg industry had one, which had made the famous “Incredible Edible Egg” slogan, while a state-level dairy program later created the “Got Milk?” slogan.

They’re called “checkoff” programs, and with those funds, there were fears from the start that the pot of money that every farmer was required to pay into might be used improperly: “We should protect against making these producers de facto members of any association that they may not wish to be involved with,” Sen. Chuck Grassley (R-IA) warned at the time.

Grassley’s concern was prescient. The National Pork Producers Council had its own voluntary checkoff program, which it set up in the 1960s and aimed to raise a modest $40,000 in its first year. It then successfully lobbied to create a mandatory checkoff program in 1985, and even drafted the regulations for it — which became the National Pork Board, the fund that farmers have to pay into. Turning it from voluntary to mandatory brought in way more money — from $40,000 in 1966 to an estimated $25 million in 1987.

And even though this new pork promotion entity was supposed to be independent, the NPPC essentially ran it. The National Pork Board had eight program areas and $500 million from farmer checkoff funds to use over its first 15 years — but only two employees. So it contracted the NPPC to execute on those programs, along with handling its accounting and operations. The two groups even shared office space in Iowa for their respective headquarters.

They were, in effect, separate groups in name only.

“It’s very difficult to tell where NPPC ends and the Pork Board begins,” Matt Penzer, chief legal officer of the Accountability Board, who analyzed the pork groups’ financial records, said about the early years of the pork checkoff program. Which was a problem, because farmer checkoff dollars weren’t supposed to be used for political lobbying — yet here was a lobbying group making money by being the Pork Board’s primary contractor.

In the late 1990s, the arrangement drew sharp scrutiny from the Clinton administration’s USDA inspector general — an internal government watchdog — which wrote in a report that the groups “should maintain an arms-length business relationship.”

And by 2000, hog farmers voted to end the National Pork Board altogether because, according to an organizer at the time, it had “been used to promote the interests of factory farms and corporate meatpackers and hasn’t helped independent producers increase their bottom line.” (According to reporting by the Associated Press, the NPPC had paid a PR firm $48,000 in checkoff dollars in the late 1990s to “monitor” the activities of sustainable agriculture groups that had criticized it.)

The farmers won the vote, but their celebration didn’t last long. The National Pork Producers Council sued the USDA over a procedural technicality, eventually settled the lawsuit, and the Pork Board survived. The settlement, reached in 2001, preserved the farmer checkoff fund but ordered NPPC to, basically, stop running it. It also required that any deals between the two groups be conducted at “fair market value.”

It seemed that the flow of money from the farmer fund to the pro-industrial National Pork Producers Council might grind to a halt, but instead it just took new forms. Internal emails, obtained by Penzer through separate litigation, reveal how.

After the USDA told the two groups they needed to cut more of their day-to-day ties, they got creative and began moving money through big, expensive trademark deals and a lucrative real estate arrangement.

In 2003, the CEO of the National Pork Board had said in an email that the National Pork Producers Council needed an extra $881,000 per year. The next year, the National Pork Board began paying it more than $800,000 per year to license the “Pork. The Other White Meat” slogan for its advertising (it had previously been licensed for $1 per year).

Then in 2006, with farmer checkoff dollars, the National Pork Board outright bought the “Pork. The Other White Meat” trademark from the National Pork Producers Council in a $60 million deal, to be paid out at $3 million annually in farmer checkoff funds for 20 years. This $3 million made up around 20 to 25 percent of the NPPC’s annual revenue at the time.

The deal was questionable on multiple fronts. For one, the council — the lobbying group — should never have owned the trademark in the first place. By law, it was the federal government’s. Second, according to Parke Wilde, a nutrition and food policy professor at Tufts University and former USDA agricultural economist, the value of the slogan had been built with advertising funded by farmer checkoff dollars, so “they’re double paying and they’re not protecting the interests of the farmers who paid in.”

A National Pork Producers Council spokesperson defended the sale, stating it was “fully vetted and approved by USDA.” (The USDA did not respond to Vox’s questions for this story.)

Finally, when the National Pork Board stopped using the slogan in 2011, it continued to pay the annual $3 million to the Pork Producers Council, even though it could have ended the contract with a year’s notice.

In 2018, a judge ordered an end to the payments, calling them “arbitrary and capricious.” (Penzer worked on the lawsuit against the USDA while working at Humane World for Animals, where I have also worked, but I was not involved with the effort.) A year later, the National Pork Board paid the council $3 million for the termination of the $60 million deal, which hasn’t been reported elsewhere.

But here’s where things get even more unusual. After the annual payments stopped — some 12 years and $36 million into the 20-year, $60 million deal — ownership of the “Pork. The Other White Meat” trademark package, which also included a simple “Pork” logo (that had more value at the time), reverted fully back to the National Pork Producers Council. The group then sold it all back to the National Pork Board in 2020, with the NPPC this time making $17.2 million in additional checkoff dollars from the transaction.

Penzer said the deal “couldn’t pass a basic intellectual property course.” This deal, surfaced by Penzer after he submitted a public records request and a subsequent lawsuit against the USDA, has not previously been reported.

If, by this point, you’re lost in the minutiae of dealmaking, I don’t blame you. The long and short of it is that, despite the legal requirement that farmers’ checkoff dollars can’t be used for lobbying, the NPPC lobbying group has received over $59 million of checkoff dollars for repeated deals involving the same trademark package.

Wilde said that many of the guardrails designed to protect the integrity of the checkoff program are simply not being followed. “And that leaves us with little assurance that the programs serve either the farmers’ interests or the public interest,” he told me.

“The money for advertising is just being used as a cover to transfer wealth to the lobbying entity,” David Muraskin, who’s long tracked checkoff programs and sued the USDA over Montana’s beef checkoff program, told Vox. Muraskin is an agricultural law professor at George Washington University Law School and a lawyer at FarmSTAND, a nonprofit that advocates against industrial agriculture.

The National Pork Board maintains that it represents all hog farmers. But both the National Pork Board and the National Pork Producers Council work to protect and expand a hyper-industrial vision of American hog farming. The board and staff of both groups, for example, are largely composed of leaders and executives from industrial pig farms, companies, and trade groups. There is also something of a revolving door between the two groups. NPPC’s current CEO, for instance, is a former Pork Board executive, while a past NPPC president held a leadership role at the National Pork Board.

The two groups didn’t limit themselves to tossing the “Pork. The Other White Meat” trademark back and forth to each other. They have also maintained a long-term real estate arrangement, the details of which have also not been previously reported.

Remember that Iowa office they shared? The National Pork Producers Council, the lobbying group, owns it. The property was valued at $2.9 million in 2007 and the Pork Board agreed to a 30-year rental lease, for which it’s now likely to pay more than $13 million (with farmer checkoff funds) by the lease’s end. The NPPC has increased the rent several times. Most of those hikes were modest — though in 2022, it raised the rent by 74 percent, the same year it sharply increased spending and was engaged in two lawsuits to dismantle state animal welfare laws.

Over the course of its lease, the National Pork Board had also spent $6.58 million to improve the NPPC’s building, a detail also not previously covered by the news media.

To understand whether this real estate arrangement is unusual or not, I reached out to nearly 20 real estate brokers, appraisers, and experts, including many in Iowa. No one in Iowa agreed to speak with me at all, let alone comment on the record. One expert told me that, on its face, the lease deal itself didn’t raise any major flags. “It is possible that the initial lease rent was set at a low rate, with a large future increase, which would create a ‘fair market value,’” said Brent Ambrose, a real estate professor at Penn State. “It may be a terrible deal, but…it is possible that the terms reflect current market conditions.”

The National Pork Board didn’t respond to detailed questions about its lease.

“The office rent agreement between NPB and NPPC is reviewed and adjusted on a periodic schedule and is also approved by USDA, along with all other checkoff expenditures and contracts,” a National Pork Producers Council spokesperson told Vox over email.

In the 2001 settlement in which the two groups agreed to operate independently, a provision specifically allowed the lease to continue.

All of this money ends up going into the budget of the NPPC. And although it’s unknown exactly which dollar goes where, the proceedings of a lawsuit several years ago appeared to confirm exactly what small farmers are worried about: that there’s no clear line preventing their contributions from going to lobbying efforts.

In a 2018 opinion in the Humane World for Animals lawsuit against the USDA for wrongly approving the 2006 trademark deal, a district court judge said that “at least some portion of the money that the Board pays NPPC… ultimately goes to influencing legislation.” But just because money from the trademark deal wound up being used to influence legislation, the judge said, doesn’t mean the deal was made for that purpose. And so, according to the judge, the groups hadn’t technically violated the law.

But Muraskin argues these deals have all added up to a convenient facade to fund a pro-industrial farming lobby group with required dollars from every pig farmer.

“It seems like they’re paying for a logo that has limited value, if [any] at all, and an office space that they’re paying well in excess of what they should be,” to move money from the National Pork Board to NPPC, which in his view, “is plainly against the statute.”

It’s not a good look for a group that represents Big Pork to be perceived as taking money from small and mid-sized farmers and using it to lobby against those farmers’ interests, and it’s been a source of controversy for decades. So how and why have they managed to continue this arrangement?

They’re “exploiting a loophole” that the USDA has failed to address, Muraskin said. “I think the entity to blame there is USDA.”

Since 2017, Sens. Mike Lee (R-UT) and Cory Booker (D-NJ) have introduced legislation to reform the checkoff programs by prohibiting them from entering into new contracts with lobbying groups (like the NPPC), among other changes. If it were to pass, the two groups would not be able to, say, engage in a new trademark deal or renew the rental lease when it expires.

“America’s farmers are being ripped off by federal checkoff programs that take farmers’ money and play favorites with who they serve,” said Lee in a press release last year. The bill lost a floor vote during 2018 Farm Bill negotiations; it’s been reintroduced several times since but hasn’t been taken up for a vote.

If you want a clear idea of why Kremer and other producers are upset about helping subsidize the NPPC, look no further than the biggest, most expensive battle the lobby is currently waging: A fight centered around the publicly unpopular practice of keeping pregnant sows confined to tiny crates for nearly their entire lives.

Called “gestation crates,” which are so small the pigs can’t even turn around, these enclosures have been widely condemned by animal welfare groups and veterinarians as inhumane, and voters tend to agree. California and Massachusetts have banned — via ballot measures — any pork sold in their states coming from farms that use these crates. (Disclosure: I worked on the Massachusetts initiative.)

But many industrial-style pork producers are heavily invested in continuing to use the crates because it’s how they’ve bred pigs for decades, and there’s a large upfront cost to switching to a crate-free system. So the National Pork Producers Council has sued both states to overturn the anti-crate laws. One case even went to the US Supreme Court — an extremely costly endeavor — where the industry group lost.

The pork producers group has also intensively lobbied for legislation called the Save Our Bacon Act, which would overturn the state laws. This spring, the act was included in the House’s version of the Farm Bill, the legislative package that covers much of US agricultural policy. But the chance of the act making it into the Senate’s Farm Bill, and thus the finalized bill, appear slim. Senate negotiations are expected to resume this month though, so the pricey fight isn’t over yet for the NPPC.

Smithfield Foods, the largest US pork producer — which has two seats on the National Pork Producers Council board — has supported this sort of legislation.

Gestation crate bans help more welfare-minded farmers like Kremer compete against big industrial producers. Crate-free producers have been able to continue to sell their pork into California and Massachusetts, while farms that did use the crates had to spend money to retrofit their barns or lose out on participating in those markets. Some big producers have been going in that direction, too: One of the nation’s largest pork companies, Clemens Foods, strongly opposes the Save Our Bacon Act because the company has already moved away from gestation crates.

Talking to Kremer and other pork producers who long ago abandoned keeping pigs in small cages, I’ve gotten the sense that these dollars moving from their hog sales to the sorts of lobbying efforts behind the Save Our Bacon Act and other pro-industrial policies mean more to them than the actual monetary amount. “They’re going after producers like myself,” Kremer told me of the fight over gestation crates. “And so yes, I feel more betrayed by them than ever.”

Without reforms within USDA or forced by Congress, it’s hard to see a way out for farmers like Kremer who have no option but to continue to give up a small share of their profits to organizations that sometimes actively fight against their interests.

But that goes for consumers, too: Each piece of bacon, rib, or pork chop purchased indirectly funds an advertising pot encouraging people to buy more pork.

And as the latest findings on the pork checkoff program reveal, some funds also go into fighting to uphold farming approaches that put profits over animal welfare and continue practices most Americans oppose, and that many have already voted to abolish.