An Overview of Price and Income Support, and Storage Programs
RCED-88-84BR, Feb 29, 1988
In response to a congressional request, GAO reviewed the Department of Agriculture's (USDA): (1) farm price and income support programs; and (2) agricultural commodities storage program.
GAO found that: (1) USDA estimated that net cash outlays for commodity price and income support programs would exceed $23 billion in fiscal year (FY) 1987; (2) nonrecourse commodity loans, the direct purchase of farm commodities, and deficiency payments accounted for most of the programs' net cash outlays; (3) corn, wheat, dairy products, and upland cotton accounted for most of the commodity net cash outlays; and (4) most support program outlays went to farmers, although some went to commercial processors of farm commodities. GAO also found that USDA: (1) estimated that net cash outlays for its storage programs would exceed $2 billion for FY 1987; and (2) implemented a special barge storage program in 1986 for the corn harvest, at an additional cost of $44.8 million.