Ensuring Proper Farm Program Payments

Federal farm programs help ensure that the U.S. farm sector continues to provide the American people with ample quantities of food, feed, and fiber. To that end, the federal government will spend about $11 billion on subsidies and disaster and conservation payments for farmers in 2009. The largest farming entities—10 percent of the recipients—collect about 70 percent of the benefits.  Moreover, we have found that USDA needs to better oversee farm program funds to ensure they are spent as economically, efficiently, and effectively as possible. Without this assurance, the programs may not benefit the agricultural sector as intended. Our work on USDA farm programs has shown the following:

  • USDA paid $1.1 billion in the names of 172,800 deceased individuals from 1999 through 2005 because it lacked enforcement controls to verify the status of these recipients.

    Highlights of GAO-07-818 (PDF), Highlights of GAO-07-1137T (PDF)

  • Each year, USDA makes payments to thousands of individuals who have only limited involvement in farming because it lacks management controls to verify that payments go only to individuals who meet eligibility requirements.

    Highlights of GAO-04-407 (PDF)

^ Back to topWhat Needs to Be Done

To reasonably ensure that farm program payments are made only to qualified recipients, USDA needs to develop and enforce measurable requirements to define a significant contribution of active personal farm management.

Highlights of GAO-04-407 (PDF)

^ Back to topKey Reports

Federal Farm Programs: USDA Needs to Strengthen Controls to Prevent Payments to Individuals Who Exceed Income Eligibility Limits
GAO-09-67, October 24, 2008
Federal Farm Programs: USDA Needs to Strengthen Management Controls to Prevent Improper Payments to Estates and Deceased Individuals
GAO-07-1137T, July 24, 2007
Federal Farm Programs: USDA Needs to Strengthen Controls to Prevent Improper Payments to Estates and Deceased Individuals
GAO-07-818, July 9, 2007
Farm Program Payments: USDA Should Correct Weaknesses in Regulations and Oversight to Better Ensure Recipients Do Not Circumvent Payment Limitations
GAO-04-861T, June 16, 2004
Farm Program Payments: USDA Needs to Strengthen Regulations and Oversight to Better Ensure Recipients Do Not Circumvent Payment Limitations
GAO-04-407, April 30, 2004
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GAO Contact
portrait of Lisa R. Shames

Lisa R. Shames

Director, Natural Resources and Environment

shamesl@gao.gov

(202) 512-2649