Disaster Assistance: Problems in Administering Payments for Nonprogram Crops
RCED-91-137
Published: Jun 28, 1991. Publicly Released: Jul 05, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of Agriculture's procedures for administering disaster assistance to crop producers that did not have federal price supports, focusing on the: (1) Agricultural Stabilization and Conservation Service's (ASCS) effectiveness in verifying producer-provided data; (2) methodology and supporting data state ASCS offices used to establish payment rates and expected nonprogram crop yields; and (3) difference between the levels of disaster payments provided and estimated production costs incurred.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| If Congress continues to provide disaster assistance to producers of nonprogram crops, Congress should consider ways of ensuring payment integrity at reasonable costs. This could be done through legislation that requires producers to keep historic production, cost, and sales records. Such records could then serve as a basis for determining the extent of disaster payments. |
Closed – Implemented
|
Congress authorized disaster assistance to cover nonprogram crop losses in 1990 and 1991, and the Dire Emergency Supplemental Appropriations Act provided $995 million for those losses. Legislative provisions indicate that producers are responsible for proving their crop losses, or USDA can determine the losses for them. Such provisions are ineffective in ensuring correct disaster claims. |
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Topics
Agricultural programsDisaster relief aidErroneous paymentsEvaluation methodsFederal legislationProperty damage claimsRecordsCropsDisaster assistanceGrain and grain products