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RCED-85-107 1 (1985-08-19)

handle is hein.gao/gaobabfga0001 and id is 1 raw text is: 




BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES





Federal Price Support For Honey

Should Be Phased Out




The mandatory honey price-support program, which is currently set at
the lowest support level allowable by law, has become costly to the
government--about $164 million for the 1980-83 period. Only 1 percent
of the nation's beekeepers participate in the program. Since 1980 the
government has acquired increasing quantities of honey as forfeiture of
loan collateral because the support price has been greater than the
world market price, and cheaper imported honey has been replacing
domestic honey in the market.

The program, which was originally justified on the need to ensure an
adequate supply of honeybees for crop pollination purposes, is actually
unnecessary to ensure pollination. Producers of seed or fruit crops to
which bee pollination is essential pay for or supply their own honeybees
for this purpose. In addition, program management is not adequate to
prevent fraud or abuse, and improvements would be costly and may not
be completely effective.
GAO recommends that the Congress eliminate the mandatory aspects
of the honey price-support program and consider directing the Secre-
tary of Agriculture to continue, under existing discretionary authority,
financial support to the beekeeping industry, but phase out the program
by reducing the price-support level over time to minimize the impact on
the industry.




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Z                                                              GAO/RCED-85-107

O                                                              AUGUST 19.1985

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