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RCED-84-175 1 (1984-08-17)

handle is hein.gao/gaobabnlc0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 HESIUCES COMMUNITY ANO EZONOMIC DEVELOPMENT DIVISION AUGUST 17, 1984 b-215752 The Honorable E (Kika) de la Garza II I Chairman, Committee on Agriculture 124941 House ot Representatives Dear Mr. Chairman: Sub3ect: Evaluation of the Quality of Corn Stored by the U.S. Department of Agriculture at a Plainview, Texas, Grain Warehouse (GAO/RCED-84-175) Your October 31, 1983, letter referred to reports in the press and other sources indicating that significant quantities of corn owned by the Department of Agriculture's (USDA's) Commodity Credit Corporation (CCC) and stored in Texas, particularly at the PLb Grain Storage Corporation warehouse in Plainview, had seri- ously deteriorated, thereby losing much of its value. You asked that we review this situation, giving priority to the controversy surrounding the condition of corn stored at the PLB warehouse. You specifically asked us to provide information on --the grade (quality) of the CCC-owned corn at the PLB ware- house, according to government records; --the actual quality of the CCC-owned corn stored at the PLB warehouse; --whether the corn had deteriorated and, it possible, who was responsible for any deterioration; and --whether the CCC-owned corn being stored at PLB was useful in meeting USDA's payment-in-kind obligations1 and live- stock producers' needs for feed. In addition, you asked us for similar information on CCC corn stored at other Texas warehouses. However, when we briefed you on iUnder USDA's payment-in-kind (PIK) program, farmers choosing to take prescribed amounts of land out of production receive as pay- ment a certain percentage of the commodities they would otherwise have grown. JSDA uses CCC-owned commodities to make these payments. (022892)

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