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131061 1 (1986-09-23)

handle is hein.gao/gaobactud0001 and id is 1 raw text is: 




             UNITED STATES GENERAL  ACCOUNTING OFFICE
                     WASHINGTON,  D.C.  20548



                                         FOR RELEASE ON DELIVERY
                                         EXPECTED AT 9:30 a.m.
                                         SEPTEMBER 23, 1986



                          STATEMENT OF
           BRIAN P. CROWLEY, SENIOR ASSOCIATE  DIRECTOR
     RESOURCES, COMMUNITY, AND ECONOMIC  DEVELOPMENT DIVISION

                           BEFORE THE

   SUBCOMMITTEE ON CONSERVATION, CREDIT, AND  RURAL DEVELOPMENT
                  HOUSE COMMITTEE ON AGRICULTURE

                               ON

              PRELIMINARY RESULTS OF GAO'S REVIEW OF
                 THE DEPARTMENT OF AGRICULTURE'S
                 FEDERAL  CROP  INSURANCE PROGAM


Mr. Chairman and Members of the Subcommittee:


     We are pleased to be here today to assist  the Subcommittee

in its oversight of the Federal Crop Insurance  Corporation (FCIC)

in implementing the expanded crop insurance program  called for by

the Federal Crop Insurance Act of  1980 (Public Law 96-365).

     As a result of the 1980 act, FCIC expanded  its insurance

coverage from 27 crops in about  1,700 counties in 1980 to about

40 crops in about 3,000 counties currently.   During this period,

however, FCIC experienced serious financial difficulties.   During

fiscal years 1981-85 insurance claims  (indemnities) exceeded

premiums by $877 million.  Administrative and operating  costs

increased from $1.43 per insured acre in crop year  1980 to $4.15


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