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CED-81-148 1 (1981-07-30)

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BY THHL US, GENERAL ACCOJNT NG OFF CF

Report To The Honorable Roger W. Jepsen


United States Senate


RELEASED


Analysis Of Certain Operations Of The

Federal Crop Insurance Corporation


The law authorizing the Federal Crop Insur-
ance Corporation was amended in 1980 to
encourage greater involvement by the private
insurance industry in the Federal program to
protect agricultural producers from losses
caused by unavoidable natural hazards. GAO's
review found that:
--Premiums for crop year 1981 will be
  about $327 million, compared to
  $157 million in 1980. The number of
  acres insured increased from about
  26.3 million to 47.7 million.
  --The Corporation has not yet increased
  its premium rates to reflect 1980
  crop losses.

  --The Corporation conducted a nation-
  wide campaign to inform producers
  about the crop insurance program,
  including coverage against hail and
  fire.

  --Some insurance companies are hesi-
  tant to participate in the program be-
  cause they believe they would be con-
  sidered Federal contractors and thus
  subject to Federal equal employment
  opportunity regulations. A decision by
  the Department of Labor is pending.

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  CED-81-148
JULY 30, 1981


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