Today we meet to review the recent report on federal crop insurance reform prepared by the Agriculture Department’s Office of the Inspector General.  I would like to welcome the Inspector General, Roger Viadero, who is here today to help us conduct that review.  The OIG report contains numerous comments and suggestions for improving the Federal Crop Insurance Program based on the OIG’s prior audits and investigations of the program.

 The OIG Report raises serious questions about the structure and management of federal crop insurance.  Some of our witnesses vigorously dispute the findings and recommendations in the OIG Report.

 Under the new budget resolution, it is the Committee’s responsibility to craft risk management legislation for farmers and ranchers.  Today’s hearing will help provide the Committee with information to determine whether that legislation should reform and improve the current system, or whether we should try a different approach to farm risk management.

 Whichever approach the Committee chooses, we should incorporate into the legislation whatever lessons we can draw from today’s hearing so that we can minimize the likelihood of repeating the current crop insurance program’s shortcomings.

 We will hear reactions to the report in testimony today from USDA Risk Management Agency Administrator, Ken Ackerman.  We will also hear the crop insurance industry’s reaction from Ron Brichler, who is Chairman of the Board of the industry’s technical assistance organization, National Crop Insurance Services.  Also with us to provide testimony today is Lawrence Dyckman, Director of Food and Agriculture Issues at the General Accounting Office.  While GAO was not involved in preparing the OIG report, its past experience in analyzing crop insurance program issues will help add perspective to today’s hearing.
 
 I look forward to a informative discussion and exchange of views.

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