Farm Payments and Loans: Consistency Needed in USDA Crop Yield Estimates
RCED-86-118
Published: May 29, 1986. Publicly Released: May 29, 1986.
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Highlights
In response to a congressional request, GAO reviewed the methods used by the Agricultural Stabilization and Conservation Service (ASCS), the Federal Crop Insurance Corporation (FCIC), and the Farmers Home Administration (FmHA) to estimate crop yields. The review identified: (1) the impact of differences in estimated yields the agencies used; and (2) possible improvements to the yield estimation process.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | To ensure an equitable distribution of benefits to the producers participating in ASCS, FCIC, and FmHA programs, and to eliminate the duplicate costs incurred in estimating multiple crop yields for the same cropland, the Secretary of Agriculture should direct the Administrators, ASCS and FmHA, and the Manager, FCIC, to jointly develop one method for estimating a single-crop yield that is consistent with each agency's objectives, and to use the crop yields resulting from this method when determining the level of loans and payments to producers participating in ASCS, FCIC, and FmHA programs. |
Each agency's parachial interests have won attention. Neither ASCS, FCIC, nor FmHA is willing to change on this point.
|
| Department of Agriculture | To ensure an equitable distribution of benefits to the producers participating in ASCS, FCIC, and FmHA programs, and to eliminate the duplicate costs incurred in estimating multiple-crop yields for the same cropland, the Secretary of Agriculture should seek any required legislative change to permit using the yield estimate resulting from the method jointly developed when calculating the amount of loans and payments for producers enrolled in ASCS programs. |
USDA does not desire a change in this area.
|
| Department of Agriculture | To ensure an equitable distribution of benefits to the producers participating in ASCS, FCIC, and FmHA programs, and to eliminate the duplicate costs incurred in estimating multiple-crop yields for the same cropland, the Secretary of Agriculture should direct the Administrators, ASCS and FmHA, and the Manager, FCIC, to give primary consideration to basing the yield estimation method on the actual historical production from each specific cropland unit. |
The three agencies cannot agree on this point. No action has been taken and none is planned.
|
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