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Ethics at the Agriculture Department - a New Frontier, or More of the Same?

By CREW Staff

From where we sit, the appearance of a conflict of interest can be just as pernicious as an actual conflict of interest, as both undermine public confidence in agency processes. That is why CREW asked the Department of Agriculture's acting general counsel, Steven C. Silverman, to investigate the apparent conflict of interest that J. Dudley Butler, administrator of the Grain, Inspection, Packers and Stockyards Administration (GIPSA), appears to have. Before coming to GIPSA, Mr. Butler was a fierce advocate for poultry growers involved in lawsuits against food processors and pushed for greater protection for competitive trading practices in the livestock industry. As administrator of GIPSA, he has led the effort to promulgate new regulations governing the marketing of livestock and poultry - regulations that have generated significant controversy, including from members of Congress.

So where's the beef? As administrator, Mr. Butler made a speech that highlights how his proposed regulations will help lawyers, including the trial lawyers of which he was a member for the bulk of his 30 years of practicing law. While many, including Agriculture's acting general counsel, have suggested Mr. Butler's remarks were intended to explain the need for greater regulatory definitions that would actually reduce litigation, many others have interpreted Mr. Butler's remarks as suggesting quite the opposite. At best, Mr. Butler's speech is ambiguous. But when coupled with his prior sustained efforts on behalf of poultry growers, there can be no doubt Mr. Butler's advocacy for new regulations raises at least the appearance of a conflict of interest.

All lawyers are charged with avoiding the appearance of a conflict, a duty that applies with even greater force to a high-level government official. The Department of Agriculture, however, does not agree and has refused to recuse Mr. Butler from further involvement with the controversial GIPSA regulations. Responding to CREW's request, Acting General Counsel Silverman pointed out that technically none of the Obama administration's bans on lobbying activities applies to Mr. Butler, who will in any event be subject to a two-year ban on contacting the agency on behalf of a third party once he leaves. Having failed to technically violate any ethics rules or prescriptions, Agriculture is content to leave Mr. Butler at the helm of the regulatory process, even if it undermines public confidence in the integrity of the process. A disappointing response.