Analysis of Crop Insurance Proposals H.R. 4360 and H.R. 4592

T-RCED-90-76: Published: May 1, 1990. Publicly Released: May 1, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed two legislative proposals to reform the federal crop insurance program. GAO noted that both disaster relief program proposals: (1) strongly relied on federal resources for premium subsidies and the payment of excess losses, but relied on private companies to deliver services; (2) would require a strong federal regulatory, oversight, and audit function to ensure program integrity and to protect the government's financial interests; (3) determined disaster compensation on the amount of loss, not on disaster severity; (4) provided similar amounts of assistance to farmers suffering similar amounts of losses; (5) made relief programs consistently available over time to allow for long-range planning; and (6) helped farmers withstand and recover from the effects of natural disasters. GAO also noted that neither proposal: (1) ensured the limitation of assistance to the amount of farmers' losses; (2) ensured that programs would not create incentives to encourage farming practices that increased the likelihood and extent of losses; (3) had predictable annual costs; and (4) ensured that programs would meet their objectives at the lowest possible cost.

Nov 20, 2020

Nov 16, 2020

Sep 16, 2020

Sep 14, 2020

Aug 10, 2020

May 7, 2020

Apr 13, 2020

Dec 23, 2019

Dec 6, 2019

Nov 12, 2019

Looking for more? Browse all our products here