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Program Assessment
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Program
View Assessment Details
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Direct Crop Payments
USDA's Commodity Credit Corporation (CCC) provides direct payments (cash) to eligible crop farmers. The intent is to provide a safety net for farmers, but to other wise continue to allow them planting flexibility. Roughly 41 percent of farms receive direct payments.
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Rating
What This Rating Means |
PERFORMING Adequate
This rating describes a program that needs to set more ambitious goals, achieve better results, improve accountability or strengthen its management practices.
- The program design could be improved. Direct payments are designed as part of a safety-net for farmers; however they are going to only about 41 percent of all farmers, and 85 percent of farmers receiving payments have annual sales greater than $50,000.
- The program is generally well managed. The program management has devised performance goals that are designed to improve the delivery of the programs benefits to farmers.
- The program has not been effective in reducing the need for government subsidies, as it was originally designed to as subsidies have increased. However, it has helped to maintain farm income.
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Improvement Plan
About Improvement Plans |
We are taking the following actions to improve the performance of the program:
- Reducing trade barriers through trade negotiations, to create new markets for U.S. agricultural exports, so that farmers will be less reliant on government support.
- Requiring producers to purchase higher levels of crop insurance for all crops that they receive direct payments; limiting the need for ad hoc disaster assistance and maintainining farm income.
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