Grain Inspection:

Industry Views on the Decline in Official Inspections and Inspection Costs

T-RCED-93-38: Published: May 13, 1993. Publicly Released: May 13, 1993.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed the Federal Grain Inspection Service's (FGIS) official grain inspection system, focusing on: (1) the decline of official inspections in the domestic grain market and its impact; (2) official domestic inspection fees; (3) export inspection fees; and (4) options for reducing inspection fees. GAO noted that: (1) from 1985 to 1992, the number of official domestic inspections has declined by about 19 percent due to grain industry consolidation, a trend to in-house grading by grain merchandisers, greater buyer confidence in sellers' grain quality, and fewer government grain acquisitions; (2) the decline in inspections has not compromised grain merchandising integrity because the official inspection system serves as a safety net; (3) domestic official inspection fees vary widely because each inspection agency sets its own rates; (4) FGIS export grain inspection fees are higher than designated state agencies' inspection fees; (5) FGIS undercharges for indirect costs of inspections because of its flawed methodology for allocating indirect costs; (6) domestic inspection fees could be reduced by lowering operating costs through consolidation of inspection services, encouraging charter applications, emphasizing fee reasonableness in agency evaluations, and eliminating exclusive territories; and (7) turning FGIS export inspections over to state agencies may not reduce inspection fees, since FGIS supervision fees would be added to state fees.

Mar 18, 2015

Mar 11, 2015

Feb 27, 2015

Jan 12, 2015

Dec 18, 2014

Nov 6, 2014

Oct 29, 2014

Oct 20, 2014

Sep 8, 2014

Aug 7, 2014

Looking for more? Browse all our products here