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RED-76-91 1 (1976-05-04)

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REPORT TO THE CONGRESS





BY THE COMPTROLLER GENERAL

OF THE UNITED STATES


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     LM098270


Alleviating Agricultural


Producers'


Crop


Losses: What


Should The Federal Role Be?

Department of Agriculture

Two Agriculture programs--an insurance pro-
gram and a direct-payment program--now
offer agriculture producers some protection
against loss of income when crops are dam-
aged or destroyed by natural disasters or
other uncontrollable hazards.

Legislation has been proposed to expand the
insurance program and repeal the payment
program. This would shift most of the disaster
protection cost from the taxpayers to the
primary beneficiaries--the producers. Agri-
culture estimates this would save the Govern-
ment $259 million annually.

GAO believes the proposed legislation has
considerable merit. It recognizes, however,
that various options can be considered in
deciding on the Federal role in agricultural
disaster protection. This report discusses the
main options and their advantages and- dis-
advantages to producers and to the Govern-
ment and the taxpayers.                  0

RED-76-91                          AY    4,1976


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