Farm Programs

Administrative Requirements Reduced and Further Program Delivery Changes Possible Gao ID: RCED-98-98 April 20, 1998

The Federal Agriculture Improvement and Reform Act of 1996 significantly changed many of the Agriculture Department's farm programs. The most far-reaching change concerned the federal government's support for the production of major crops, such as wheat, feed grains, cotton, and rice. The act discontinued the complex programs in which farmers received payments in exchange for accepting federal controls over crops and the amount of acreage they could put into production. Farmers now sign up once to receive annual payments established in production contracts and generally can plant whatever crops they choose. GAO found that farmers are spending less time on administrative requirements than they did before the 1996 act. The number of required visits to county offices has declined, as has the amount of time spent on paperwork. The Farm Service Agency could transact more business with farmers through the mail and by telephone and computer, however, thus increasing the efficiency of its operations. Using alternative delivery methods could allow the Agriculture Department to operate with fewer staff and offices, which could save millions of dollars. At the same time, changing delivery methods would reduce farmers' personal contact with country office staff and place greater responsibility on farmers to complete and submit paperwork in a timely fashion.

GAO noted that: (1) farmers are now generally spending less time on administrative requirements than they did before the 1996 act; (2) the number of required visits to county offices has declined, as has the amount of time spent completing paperwork for the farm programs; (3) the Farm Service Agency (FSA) could transact more with business farmers through the mail and by telephone and computer, thus increasing the efficiency of its operations; (4) using alternative delivery methods should allow USDA to operate with fewer staff and offices, which could reduce expenses by millions of dollars; (5) while GAO found no statutory or regulatory requirements that direct farmers to visit county offices, changing delivery methods to rely more on such approaches will require fundamental changes in the FSA's long-standing practices and relationships with farmers; and (6) in particular, such methods would reduce farmers' personal contact with county office staff and place greater administrative responsibility on farmers to ensure that required paperwork is completed and submitted in a timely fashion.

Recommendations

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