Commodity Credit Corporation's (CCC) Commodity Loan and Grain Reserve Programs

A review was made of the management of the Commodity Credit Corporation's (CCC) commodity loan and grain reserve programs which are administered by the Agricultural Stabilization and Conservation Service (ASCS). A previous review indicated the need for improvements in (1) the methods followed by county commodity inspectors in taking grain measurements which, along with the test weight, are used as a basis for determining loan amounts under both programs and storage payments under the reserve program, and (2) identifying storage facilities containing CCC's loan collateral.

GAO believes that uniformity is necessary in the methods followed by commodity inspectors in measuring grain. GAO found, however, that some states and counties require that the grain be in a measurable position before measurement, such as being leveled or having bulkheads installed in flat storage structures, whereas other states do not. The extent of judgment used and number of measurements taken by the inspectors in determining the dimensions of grain varied. Generally, only overall measurements were taken regardless of the size of the facility, the number of cones, or different grain levels. Although ASCS established procedures on how to draw a representative sample for test weight, the methods used by the inspectors in the Kansas and Minnesota counties differed greatly. In addition, because commodity loan seals are not always attached to the applicable bins under loan, the inspector may have difficulty locating the specific storage facility to be inspected. The Office of the Inspector General identified similar problems during audits, including the fact that commodities under loan were not always properly tested; commodity loan seals were not attached to grain bins; and loan quantities were incorrect.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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