The U.S. government pays approximately $20 billion per year in agricultural subsidies to farmers as a method of “farm income stabilization.”  Any fraudulent claim made to the government in order to receive any portion of these funds can make the farmer liable under the FCA.

Example

In 2002 and 2003, the U.S. Department of Agriculture (USDA) created initiatives to provide protein-enriched feed to ranchers in certain states.  To achieve this, the USDA provided nonfat dry milk to feed dealers at little or no cost to be incorporated into livestock feed.  Under the regulations of the program, this dry milk enhanced feed was only to be sold to certain drought-stricken states.  On June 17, 2010, the DOJ filed an FCA suit against R&J Feed Co., Jerry Goodwin, Richard Carter and Carter Livestock Inc., alleging that the companies illegally sold the dry milk enhanced feed to other countries while simultaneously certifying compliance with the program.