Agriculture Payments: Effectiveness of Efforts to Reduce Farm Payments Has Been Limited
RCED-92-2
Published: Dec 05, 1991. Publicly Released: Dec 11, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed whether: (1) amendments to the Food Security Act of 1985 effectively prevented producers from avoiding the $50,000 payment limit and reduced program payments; and (2) the Department of Agriculture's (USDA) computer systems effectively monitor and enforce payment limit requirements.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| If Congress wants to further tighten payment limits as a means of reducing program costs, it may wish to consider having the payment limit apply to individuals only, with payments limited to $50,000 for individuals actively engaged in farming whether those payments: (1) are earned from their own operations; or (2) are attributed to them as owners in one or more entities. A higher limit could be established for specific crops that would not be considered economically viable if held to the $50,000 limit. |
Closed – Not Implemented
|
As part of the Federal Agriculture Improvement and Reform Act of 1996, the 104th Congress replaced farm program payments with production flexibility contract payments and reduced the payment limit from $50,000 to $40,000. However, the act did not address the issue of limiting payments to individuals actively engaged in farming, as GAO has recommended. No further changes in payment limitations are anticipated. |
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Agricultural industryAgricultural productionCorporationsCost controlEligibility criteriaFarm income stabilization programsFarm subsidiesManagement information systemsGrain and grain productsFarming