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r COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON. D.C. 20
B- 114 824 JANUARY 29,1980j
111435
Chairmen,, ,,
'enate Committee on Governmental Affairs 0 L9oc'
.Senate Committee on Appropriations G)0
-house Committee on Government Operations 01,5j00
House Committee on Appropriations ,c
Subject: 9orrective Action, Reported by Department
of Agriculture on a Factor Involving
Federal Rice Deficiency Payments, Has Not
Been Implemented] (CED-80-48)
This report discusses a finding 1fd a related recom-
maendation that we made to the Department of Agriculture
and the Department's response to congressional committees
on corrective action taken.
On June 25, 1979, we reported to the Congress (CED-79-85) ...
that the Department of Agriculture's statistics a9ency--the
Economics, Statistics, and Cooperatives Service--disagreed
with our proposal that it include in its computation of the ..
national average market price of rice a factor to recognize
the drying costs involved when farmers deliver green (high
moisture) rice rather than dry rice to a rice miller. We
therefore recommended that the Congress amend section 101h
of the Agricultural Act of 1949, as amended (7 U.S.C. 1441),
to provide, among other things, that the quantities and
amounts paid on rice purchases reported by millers be com-
piled on a common basis in computing the national average
market price.
In our report we said that while neither the rice pro-
gram's authorizing legislation nor its legislative history
indicated how the price should be determined, the omission of
this factor caused deficiency payments to farmers to be about
$10.6 million more than they otherwise would have been for
the 1976 rice crop and $5 million more for the 1978 crop. No
payments were necessary on the 1977 crop.
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