Center for Agribusiness Excellence
Objective
The objective is to conduct research that satisfies the requirements of H.R. 2559, Section 121 as amended in Section 515 (j) (2) for improvement of program compliance and integrity. To improve crop insurance, the project includes the following: (1) Provide tools, information, and analysis proven to be effective in the private sector in reducing insurance waste, fraud, and abuse, and (2) Analyze incentives created by existing contracts, contract approval guidelines, and other elements of the federal crop insurance program that contribute to fraud, waste, and abuse, and to develop and assist in implementing key strategies for managing them. Through the CAE, this project is to assist USDA's Risk Management Agency in strengthening the Federal Crop Insurance Program and reducing needless taxpayer costs. CAE's focus is on identifying the most economically important sources of moral hazard, waste, fraud and abuse. The initial cooperative agreement with the Risk Management Agency, USDA to fund the CAE was approved in December 2000. Current funding is through a contract with the Risk Management Agency, awarded through competitive bid that is expected to extend for the next several years.