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B-114824,B-114834,B-126965 1 (1977-10-03)

handle is hein.gao/gaobachix0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UHMTD STATES WASmINGTON. D.C. us B-126965, 114824, 114834 OCT 3 1977 CED7-539 The Honorable Ed Jones, Chairman Subcommittee on Conservation and Credit House Committee on Agriculture Dear Mr. Chairman: This letter refers to H.R. 7111, 95th Congress, a bill which, if enacted, would be cited as the Farm Production Protection Act of 1977, The bill would provide a voluntary self-help program designed to assist producers of agricultural products to protect themselves against loss when natural or uncontrollable conditions adversely affect production. On the basis of reviews ike had made of presently authorized crop pro- tection programs--which H.R. 7111 would substantially revise-- we offer the following observations which the Subcommittee may find useful in considering the proposed legislation. In our May 4, 1976, report to the Congress, entitled Alleviating Agricultural Producers' Crop Losses: What Should the Federal Role Be? (RED-76-9l)(copy enclosed), we discussed the two Department of Agriculture programs now in effect, the Commodity Credit Corporation (CCC) disaster pay- ment program and the Federal Crbp Insurance Corporation (FCIC) crop insurance program. The report analyzed several options to be considered in connection with legislation introduced in the 94th Congress and in deciding on the Federal role in agri- cultural disaster protection, and it discussed the advantages and disadvantages of these options to producers, the Government, and the taxpayers, H.R. 7111 would substantially expand the coverage of the present FCIC program and would, in the scope of the new pro- gram, include and broaden the protection now afforded by the present CCC disaster payment program. The principal features of the legislation are: --A new Farm Production Protection Corporation would replace the present FCIC.

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