Farm Programs

In response to a congressional request, GAO provided information on the Department of Agriculture's (USDA) net cash outlays for commodity price and income support programs for 1987 through 1989.

GAO found that: (1) USDA net cash outlays for commodity price and income support programs in 1987 totalled about $22.4 billion; (2) USDA estimated an additional $34.8 billion for combined 1988 and 1989 net cash outlays for the program; (3) non-recurring commodity loans, direct purchase of farm commodities, and cash payments totalled $18.9 billion in 1987, while combined 1988 and 1989 estimated outlays were $25.4 billion; and (4) corn, wheat, dairy products, and upland cotton accounted for most of the commodity net cash outlays during the period. GAO also found that: (1) although most support programs continued to provide nonrecoverable cash payments, recoverable loan programs accounted for about $12 billion in cash outlays in 1987 and an estimated $13 billion in 1988 and 1989; (2) Agricultural Stabilization and Conservation Service administrative expenses totalled $1.1 billion in 1987 and were estimated at $6.1 billion for 1988 and 1989; (3) most support program outlays continued to go to farmers, including $19.8 billion in 1987 and an estimated $25.2 billion in 1988 and 1989; and (4) nonfarmers and other recipients received about $3.8 billion in 1987 and were expected to receive an estimated $6.1 billion in 1988 and 1989.