USDA License Fees: Analysis of the Solvency and Users of the Perishable
Agricultural Commodities Act Program (Testimony, 03/16/95,
GAO/T-RCED-95-135).

The long-term solvency of the Perishable Agricultural Commodities Act
program, which promotes fair trading practices in the marketing of
perishable fruits and vegetables, is at risk. Although revenues are
expected to cover program expenditures through fiscal year 1995, the
Department of Agriculture (USDA) will later have to draw upon program
reserves because the current legislative ceiling will prevent the
program from collecting enough revenues to cover spiraling costs.
Although these reserve will be sufficient to carry the program through
fiscal year 1998, after that the reserves will be depleted and program
solvency will be at risk. Some buyer and seller contributions to program
revenues were often not proportionate to their use of program services.
For example, during fiscal year 1993, buyers and sellers trading more
than one ton of produce a day contributed about 42 percent of the
program's revenues but required up to 85 percent of the program's
services.  Conversely, retailers covered by the act annually contributed
about 34 percent of the revenues but required less than seven percent of
program services.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-95-135
     TITLE:  USDA License Fees: Analysis of the Solvency and Users of 
             the Perishable Agricultural Commodities Act Program
      DATE:  03/16/95
   SUBJECT:  Farm produce
             Agricultural programs
             Budgetary reserves
             Commodity marketing
             Licenses
             Future budget projections
             Fees
             Agricultural products
             Trade policies
             Risk management
IDENTIFIER:  USDA Perishable Agricultural Commodities Act Program
             
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