GAO found a number of problems, which take me back to the late 1970's when ASCS was operating a crop disaster program through its county offices, and I was involved in its administration in DC. The deja-vu ones include:
- farmers getting indemnities in multiple years (sometimes because the coverage levels (yields) are set too high)
- farmers dividing acreages into separate insurable units. There's a rational basis--for example hail on the Great Plains may cut a swath through the wheat. If you have 10 1,000 acre fields each insured separately rather than 1 10,000 acre field insured as one you increase the chances of having a loss on one or more fields. But there's also a reason to cheat. Because wheat is wheat, as Gertrude Stein didn't say, you can shift your actual production among different fields, possibly boosting your yield history (for future years) and/or creating a indemnifiable loss on another field
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