Crop Insurance: Federal Crop Insurance Corporation Needs to Improve Decision-Making

摘要

In accordance with the Federal Crop Insurance Act of 1980, the U.S. Department of Agriculture's (USDA) Federal Crop Insurance Corporation (FCIC) has expanded crop insurance into a national program. In doing so, however, FCIC has had financial difficulties. For fiscal years 1982 through 1985, claim payments (indemnities) exceeded premium income by $849 million. In response to a congressional request, GAO reviewed key management decisions affecting FCIC's financial viabiity and operations to determine whether the decisions were based on complete and accurate data and analysis. GAO reviewed decisions affecting such things as forecasts of income and indemnities used in budget requests; a proposal to rely on reinsurance rather than both reinsurance and direct insurance; rates of payments to, and gains and losses shared with, private companies selling crop insurance; and actions to improve the program's actuarial soundness.