Farmer-Owned Grain Reserve Program Needs Modification To Improve Effectiveness
CED-81-70
Published: Jun 26, 1981. Publicly Released: Jun 26, 1981.
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Highlights
The farmer-owned grain reserve, authorized by the Food and Agriculture Act of 1977, is to encourage producers to store wheat and feed grains when they are in abundant supply and extend the time for their orderly marketing.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should evaluate the effectiveness of the farmer-owned reserve to serve as a basis for Congress to use in making future grain policy decisions. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Agriculture | The Secretary of Agriculture should study the feasibility of other farmer-owned reserve program modifications and, if they provide remedies to the problems that were found, incorporate them into the program. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Agriculture | The Secretary of Agriculture should require the Agricultural Stabilization and Conservation Service to obtain official grade determinations, on a sample basis, as grain enters the farmer-owned reserve and on the same grain each subsequent year (where possible), to develop a profile of FOR grain and determine what characteristics are predictors of storability. |
Closed – Not Implemented
The agency does not intend to act on this recommendation.
|
| Department of Agriculture | The Secretary of Agriculture should require the to improve its guidelines and the Agricultural Stabilization and Conservation Service procedures for identifying grain with quality problems serving as loan collateral and correcting or eliminating quality problems identified. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Agriculture | The Secretary of Agriculture should amend program regulations to make them consistent with Agricultural Stabilization and Conservation Service procedures which provide that storage earnings stop in all cases when a grain reaches call status. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Agriculture | The Secretary of Agriculture should determine the average cost of FOR grain storage and limit producer storage payments to this amount. In determining the average cost of FOR grain storage, both on farm and warehouse storage costs should be considered. |
Closed – Not Implemented
The law was changed in 1981; Agriculture is no longer required to set storage payments based on the average cost to store the commodities.
|
| Department of Agriculture | The Secretary of Agriculture should provide for methodical program adjustments in response to a broad range of potential market and political developments to allow decisionmakers in grain and related industries to anticipate such changes and adjustments, while still allowing for some flexibility. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Agricultural policiesAgricultural programsDemurrage chargesFarm income stabilization programsFood supplyGrain and grain productsLivestock productsPrice indexesProgram evaluationProgram management