This year, it recommended cutting subsidies for high-income participants by introducing an adjusted gross income (AGI) means test to prevent farmers with an annual income above $900,000 from remaining eligible for payments funded by taxpayers.
The GAO also suggested Congress lower the mandatory minimum compensation for private insurance companies. Congress now grants private insurance companies a guaranteed annual rate of return of 14.5% at the expense of taxpayers – regardless of market conditions. In some years, “USDA’s compensation to insurance companies greatly exceeded payments to farmers.”
The GAO also suggested Congress lower the mandatory minimum compensation for private insurance companies. Congress now grants private insurance companies a guaranteed annual rate of return of 14.5% at the expense of taxpayers – regardless of market conditions. In some years, “USDA’s compensation to insurance companies greatly exceeded payments to farmers.”