tailieunhanh - Savings Would Result from Program Changes and Greater Use of Data Mining

As crop prices increase, the value of the crops being insured increases, which results in higher crop insurance premiums and premium subsidies. For example, the prices of major crops were substantially higher in 2011 than in 2006, and premium subsidies in 2011 (about $ billion) were substantially higher than in 2006 (about $ billion). USDA forecasts that the prices of major crops—corn, cotton, soybeans, and wheat—will continue to be substantially higher than 2006 prices through 2016. Administrative expense subsidies also increased because of higher crop prices. However, RMA capped administrative expense subsidies in the 2011 standard reinsurance agreement (SRA), a. | United States Government Accountability Office GAO Report to the Ranking Member Permanent Subcommittee on Investigations Committee on Homeland Security and Governmental Affairs . Senate March 2012 CROP INSURANCE Savings Would Result from Program Changes and Greater Use of Data Mining GAO-12-256 March 2012 4 GAO __ Accountability Integrity Reliability Highlights Highlights of GAO-12-256 a report to the Ranking Member Permanent Subcommittee on Investigations Committee on Homeland Security and Governmental Affairs . Senate Why GAO Did This Study The . Department of Agriculture USDA administers the federal crop insurance program with private insurance companies. In 2011 the program provided about 113 billion in insurance coverage for over 1 million policies. Program costs include subsidies to pay for part of farmers premiums. According to the Congressional Budget Office for fiscal years 2013 through 2022 the program costs primarily premium subsidies will average billion annually. GAO determined the 1 effect on program costs of applying limits on farmers premium subsidies as payment limits are set for other farm programs and 2 extent to which USDA uses key data mining tools to prevent and detect fraud waste and abuse in the program. GAO analyzed USDA data reviewed economic studies and interviewed USDA officials. What GAO Recommends To reduce crop insurance program costs Congress should consider limiting premium subsidies for individual farmers reducing subsidies for all farmers or both. GAO also recommends in part that USDA encourage the completion of field inspections. In commenting on a report draft USDA did not agree that Congress should consider limiting premium subsidies but GAO believes that when farm income is at a record high and the nation faces severe fiscal problems limiting premium subsidies is an appropriate area for consideration. USDA agreed with encouraging the completion of field inspections. View GAO-12-256. For more information .

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