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Farm Program Payments: USDA Should Correct Weaknesses in Regulations and Oversight to Better Ensure Recipients Do Not Circumvent Payment Limitations

GAO-04-861T Published: Jun 16, 2004. Publicly Released: Jun 16, 2004.
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Highlights

Farmers receive about $15 billion annually in federal payments to help produce major crops, such as corn, cotton, rice, and wheat. The Farm Program Payments Integrity Act of 1987 (1987 Act) limits payments to individuals and entities--such as corporations and partnerships--that are "actively engaged in farming." This testimony is based on GAO's report, Farm Program Payments: USDA Needs to Strengthen Regulations and Oversight to Better Ensure Recipients Do Not Circumvent Payment Limitations (GAO-04-407, April 30, 2004). Specifically, GAO (1) determined how well USDA's regulations limit payments and (2) assessed USDA's oversight of the 1987 Act.

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Agricultural policiesAgricultural programsEligibility criteriaErroneous paymentsEvaluation methodsFarm income stabilization programsFarm subsidiesFraudProgram abusesRegulationStandards evaluationTransfer payments