USDA Overpayments

The recently released report by USDA’s Office of Inspector General stating that the USDA made 239 farm assistant overpayments totaling a combined worth of $20.3 million during the 2012 fiscal year will be one of the first things members of Congress address as they prepare to go to conference over the 2013 farm bill. To be cited as a “high dollar” overpayment the overpayment must be at least 50% more than the correct amount and more than $5 thousand to an individual or $25 thousand to an entity for the quarter. The highest number of overpayments were allotted to the USDA’s Federal Crop Insurance Program, which overpaid seventy individuals or entities for a total of roughly $14.7 million. The OIG report suggests that the USDA can reduce overpayment amounts through better bookkeeping and the reporting of errors in a shorter time period. In response, USDA officials agreed to improve the way they identify and document overpayment errors and stated that new procedures had already been put in place the end of August. The report also noted there were no major overpayments for the USDA’s nutrition assistance programs in 2012.