Analysis of Certain Aspects of a Corn Shipment to South Texas To Meet Obligations to Producers Under the Payment-In-Kind Program

In response to a congressional request, GAO reviewed certain aspects of a corn shipment to South Texas to meet obligations to producers under the Department of Agriculture's (USDA) Payment-In-Kind (PIK) Program to determine: (1) the difference in the quality of some of the corn between the time it was graded at its point of shipment and the time it was graded at its arrival point and whether the warehouse used was a problem shipper; (2) the USDA rationale for shipping the corn to the warehouse rather than to its eventual destination; (3) whether the USDA position that it was not liable for reimbursing the warehouse for costs incurred in anticipation of receiving the shipment was correct; (4) whether the USDA decision not to have the corn upgraded by the warehouse but to ship the corn to another location was correct; and (5) whether USDA normally fulfills its PIK corn obigations with low-grade corn.