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U.S. Grain Sales: Inventory Sales Raise Issues for Legislative Consideration

RCED-90-120 Published: May 22, 1990. Publicly Released: Jul 03, 1990.
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Highlights

Pursuant to a congressional request, GAO assessed whether the Department of Agriculture (USDA) received reasonable prices for the grain it sold during fiscal years 1988 and 1989.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Resolving questions on federal grain sales and inventory management, such as those that are discussed in this letter, could have significant implications for future farm policy. Over the next few months, Congress will be considering changes to the nation's farm policy as it deliberates over the 1990 farm bill. Therefore, as part of those deliberations, Congress may wish to consider addressing questions concerning: (1) how high or low federal grain stocks should be allowed to go before actions are taken to decrease or increase them; (2) whether USDA authority for grain sales should be expanded or restricted; and (3) whether USDA farm support programs can or should be modified to avoid the buildup of unnecessarily large inventories.
Closed – Implemented
Congress has enacted and USDA has implemented part three of the recommendation. Congress has not taken any action on parts one and two. An accomplishment report is being prepared for part three. Since Congress is not expected to act on the farm bill until 1995, the recommendation should be closed.

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Topics

Commodities exchangesCommodity salesDirect loansFair market valueFarm income stabilization programsFederal property managementGrain and grain productsInventory controlLoan defaultsPrice fixing