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Federal government sending farm subsidies to dead people, auditors say

by Chris Casteel Published: July 29, 2013

The U.S. Department of Agriculture has made progress in recent years, but it still pays dead people.

The Government Accountability Office reported Monday that two USDA agencies improperly sent millions of dollars in subsidies to deceased individuals because it didn't have the right tools to filter them out.

According to the GAO, which is Congress' auditing arm, the agencies that oversee conservation and crop insurance programs paid nearly $33 million combined in subsidies to deceased farmers between 2008 and 2012.

The Natural Resources Conservation Service made $10.6 million in payments on behalf of 1,103 deceased individuals one year or more after their death, the GAO said in its report.

The Risk Management Agency paid an estimated $22 million in subsidies on behalf of an estimated 3,434 program policyholders two or more years after death, the reports states.

Some of the payments may have been proper, since the relatives of deceased participants in farm programs are allowed to collect the money for a certain amount of time as long as they are engaged in farming.

However, the GAO reported, the two agencies don't have processes for identifying payments to deceased farmers and don't review the payments. The GAO examined some specific payments and found they went to ineligible people.

The GAO was more positive about the Farm Service Agency's effort to cut down on its own payments to dead people.

In a 2007 report, the GAO found that the agency had paid more than $1 billion from 1999 through 2005 to nearly 173,000 dead farmers.

Since then, however, the agency has begun matching the names of people receiving subsidies to the Social Security Administration's list of the deceased and then reviewing payments to determine whether they're proper.

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by Chris Casteel
Washington Bureau
Chris Casteel began working for The Oklahoman's Norman bureau in 1982 while a student at the University of Oklahoma. After covering the police beat, federal courts and the state Legislature in Oklahoma City, he moved to Washington in 1990, where...
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