NOVEMBER 7, 2005

ISSUE 1088

GAO FINDS CROP INSURANCE PROGRAM VULNERABLE TO ABUSE
 
The Government Accountability Office (GAO) has found that the federal crop insurance program, administered by USDA's Risk Management Agency (RMA), does not make use of tools available to it and is vulnerable to abuse.
 
Among its findings, the report issued October 31 said that inspections during the growing season are not being used to maximum effect and that RMA's data analysis of the largest operations is incomplete.
 
GAO says, among its recommendations, that Congress should consider reducing premium subsidies to producers who repeatedly file questionable claims, and USDA should improve the effectiveness of inspections and recover payments from operations that do not disclose producers' ownership interests.
 
USDA agreed with many of GAO's recommendations, but said it does not have the resources to increase the number of growing season inspections.
 
The entire report is available through a link in the Resource Library section at www.ffva.com.