Crop Insurance:

Program Has Merit, but FCIC Should Study Ways to Increase Participation

RCED-88-211BR: Published: Aug 15, 1988. Publicly Released: Aug 15, 1988.

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Pursuant to a congressional request, GAO reviewed the Federal Crop Insurance Corporation's (FCIC) Federal Crop Insurance Program, focusing on: (1) the merits of crop insurance; and (2) steps that FCIC could take to help increase participation in the program.

GAO found that: (1) crop insurance is the most efficient and equitable method for providing federal disaster assistance to farmers; (2) the 1987 participation level was only about one-half of the planned 50-percent level; and (3) FCIC should conduct a nationwide study to determine which of the major factors influencing participation it could and should address.

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