Source: POLITICO'S MORNING AGRICULTURE, 5/31/19

A growing number of senators are calling foul on USDA trade relief funds flowing to JBS USA, which is owned by the scandal-plagued Brazilian meatpacking giant JBS S.A. that is under investigation by the Justice Department. But Agriculture Secretary Sonny Perdue and pork industry groups are defending the payments as beneficial to U.S. hog farmers, regardless of who owns the processing plants, writes Pro Ag's Ryan McCrimmon.

USDA has awarded JBS USA at least $62 million in contracts for pork products under the department's initial $1.2 billion commodity purchase program, part of the 2018 trade aid plan. Perdue last week unveiled a second trade aid package for 2019, including $1.4 billion to buy goods like pork, milk, fruits and vegetables for distribution to food banks or school cafeterias.

Top Democrats including Senate Minority Leader Chuck Schumer and Senate Ag ranking member Debbie Stabenow sent a letter to Perdue this week asking him to make sure no more funds are directed to JBS or other foreign-owned companies like Chinese-owned Smithfield Foods, which pulled out of a bid for $240,000 under the program after a backlash including sharp criticism from Sen. Chuck Grassley .

Pork pushes back: The National Pork Producers Council has argued that cutting JBS out of the program would diminish competition and lead to higher costs.