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Disaster Assistance: Problems in Administering Agriculture Payments

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Report Type Reports and Testimonies
Report Date April 13, 1994
Report No. T-RCED-94-187
Subject
Summary:

This testimony focuses on efforts to reform the disaster assistance and federal crop insurance programs. The Agriculture Department has experienced difficulties in administering disaster assistance and in ensuring that disaster assistance payments, combined with crop insurance payments, do not exceed legal limits. The problems in administering ad hoc disaster payments and crop insurance suggest that Agriculture should develop a more effective approach to providing risk management alternatives to producers. GAO believes that integrating disaster assistance and crop insurance programs could guarantee producers continuous disaster coverage. At the same time, this integrated program, if properly designed and implemented, could better protect government funds.

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