Audit of the Financial Statements of Federal Crop Insurance Corporation, Fiscal Year 1978
CED-79-72: Published: May 31, 1979. Publicly Released: May 31, 1979.
- Full Report:
The Federal Crop Insurance Corporation (FCIC) reported an operating loss of $78.2 million for fiscal year (FY) 1978, due primarily to drought conditions affecting the corn, tobacco, and wheat crops. FY 1978 loss is the largest in FCIC history. To cover large losses from July 1, 1975, to September 30, 1978, FCIC used $136.5 million of the $140 million Congress authorized to the Treasury to invest in capital stock during that period. Preliminary estimates indicated that in FY 1979, crop year 1978, premiums will exceed indemnities by about $43.2 million, which should offset in part the large deficits of recent years. In 40 pilot counties, FCIC is testing the capability of the county Agricultural Stabilization and Conservation Service Delivery System to improve underwriting practices and increase sales of crop insurance. The financial statements present fairly the financial position of FCIC and the results of its operations and the changes in its financial position for the year then ended, in accordance with generally accepted accounting principles.