ABSTRACT

Crop Insurance: Opportunities Exist to Improve Program Delivery and Reduce Costs, Report to the Honorable Dianne Feinstein, U.S. Senate   [open pdf - 5MB]

"To implement the federal crop insurance program, USDA's RMA [Risk Management Agency] partners with private insurance companies, which sell and service policies. In 2010, USDA negotiated an agreement with insurance companies to set a national cap on the annual payments it makes to them for expenses and a target rate of return. GAO [Government Accountability Office] was asked to examine (1) the changes in expense payments to companies due to the cap, (2) the extent to which the program's target rate of return reflects market conditions, and (3) opportunities for the federal government to reduce its delivery costs for the program. GAO analyzed RMA data on payments to companies for their expenses, conducted an updated analysis based on a USDA-commissioned study of the annual rate of return that companies should be expected to earn, and interviewed RMA officials."

Report Number:
GAO-17-501
Publisher:
Date:
2017-07
Copyright:
Public Domain
Retrieved From:
Government Accountability Office: http://www.gao.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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