CHAIRMAN THOMPSON DISMISSES SHORTSIGHTED GAO REPORT

Statement

"The recent Government Accountability Office (GAO) report on crop insurance isn't worth the paper it is printed on. GAO uses inconsistent performance metrics to make an apples to oranges comparison of crop insurance returns versus those of other lines of insurance. Further, they completely ignore the benefits of Federal crop insurance, which is one of the most successful examples of a public-private partnership in existence. Farmers willingly pay significant premiums for crop insurance coverage because it provides reliable assistance when disaster strikes. This timely indemnification doesn't just benefit farmers, it bolsters rural economies by ensuring that producers can pay back their lenders, retain their employees, and get back on their feet to farm again the following season.

Finally, it is ironic that this report criticizing private sector delivery was published amidst the ongoing debacle of USDA's implementation of disaster aid for 2022 losses. Government delivery of aid is the alternative to the public-private partnership and I don't know of a single producer that would want to make that trade or a single taxpayer that would not ultimately regret upending the system we currently have."

Source