Senator Chuck Grassley today released the following comment after the Department of Agriculture and the IRS announced that they will begin working together to combat fraud in the farm payment system.
Grassley has been the chief advocate for closing loopholes that allow people to circumvent the rules associated with the farm payment system. He has requested three separate Government Accountability Office reports on improper farm payments. The most recent report was released in October 2008 and said that the Department of Agriculture made nearly $50 million worth of potentially improper payments to farmers who exceeded income eligibility limits put in place by Congress. The second report also found farm payments going to dead people.
"The three GAO reports I requested outlined some serious deficiencies with our farm payment system. Not only were dead people receiving farm payments, but people far exceeding the income limitations were taking advantage of a system meant to help small- and medium-sized farmers get through the rough patches of farming. It appears that this agreement between USDA and IRS will help eliminate some of the fraud and abuse we've been seeing, without public dissemination of confidential taxpayer information. This is a good step forward in bringing more accountability to the farm payment system and instilling confidence with the public that payments are going to those who need it most."