Key Issues > Farm Programs
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Farm Programs

In the early 1930s, when American agriculture was hit hard by drought and economic disaster, Congress enacted legislation to protect farmers against the risks of low crop prices and bad weather, among other things. Since then, Congress has periodically passed legislation to help farmers manage the risks inherent to agriculture.

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The U.S. Department of Agriculture (USDA) administers programs to support farm income, assist farmers after disasters, and conserve natural resources. USDA provides this support through agricultural subsidies and insurance, which cost about $20 billion annually.

Increased federal budget deficits and record levels of farm income and prices for major crops have heightened the need to ensure that farm program funds are spent as economically, efficiently, and effectively as possible. However, USDA’s implementation and oversight of these programs is not always effective, and some programs may have unintended consequences or work at cross purposes to other programs. For instance, of the roughly 875,000 farmers participating in the crop insurance program in 2011, 3.9 percent received 32.6 percent of the $7.4 billion provided for premium subsidies (see figure 1).

Figure 1: Percentage of Farmers and Value of Premium Subsidies, by Individual Farmers Receiving Subsidies of $40,000 or Less, or More than $40,000 in 2011

Percentage of Farmers and Value of Premium Subsidies, by Individual Farmers Receiving Subsidies of $40,000 or Less, or More than $40,000 in 2011

Figure 2 shows the locations of the farmers who received more than $40,000 in crop insurance premium subsidies for 2011. According to officials of USDA’s Risk Management Agency, regions such as the plains states might include more farmers who received more than $40,000 in premium subsidies because farmers in the region have large-acreage farms; produce high-value crops, such as sugar beets; or have higher premium rates.

Figure 2: Locations of Farmers Receiving Premium Subsidies of More Than $40,000, 2011

Locations of Farmers Receiving Premium Subsidies of More Than $40,000, 2011

Looking for our recommendations? Click on any report to find each associated recommendation and its current implementation status.

Farm Programs

Direct Payments Should Be Reconsidered
GAO-12-640, Jul 3, 2012

Farm Bill

Issues to Consider for Reauthorization
GAO-12-338SP, Apr 24, 2012

Crop Insurance

Savings Would Result from Program Changes and Greater Use of Data Mining
GAO-12-256, Mar 13, 2012

Crop Insurance

Opportunities Exist to Reduce the Costs of Administering the Program
GAO-09-445, Apr 29, 2009

Federal Farm Programs

USDA Needs to Strengthen Controls to Prevent Payments to Individuals Who Exceed Income Eligibility Limits
GAO-09-67, Oct 24, 2008

Agricultural Conservation

Farm Program Payments Are an Important Factor in Landowners' Decisions to Convert Grassland to Cropland
GAO-07-1054, Sep 10, 2007

More Reports

Civil Rights

Additional Actions in Pigford II Claims Process Could Reduce Risk of Improper Determinations
GAO-13-69R, Dec 7, 2012

Seafood Safety

Responsibility for Inspecting Catfish Should Not Be Assigned to USDA
GAO-12-411, May 10, 2012

USDA Systems Modernization

Management and Oversight Improvements Are Needed
GAO-11-586, Jul 20, 2011

U.S. Department of Agriculture

More Effective Management and Performance Can Help Implementation of the Farm Bill
GAO-11-779T, Jun 23, 2011

USDA Crop Disaster Programs

Lessons Learned Can Improve Implementation of New Crop Assistance Program
GAO-10-548, Jun 4, 2010
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