Thanks, Disir, for your informative post.
From your link:
[W]hile food stamp fraud does occur, SNAP still has one of the lowest fraud rates among federal programs. Americans are far more likely to cheat on their taxes or commit auto insurance fraud than misuse their food stamps.
Yet as Republican Congress members cry fraud to justify defunding SNAP, representatives on both sides of the aisle are expanding without question a different USDA-funded program—one that the Secretary of Agriculture and ranking members of the House Agriculture Committee have both acknowledged to suffer from a much higher incidence of fraud. The federal crop insurance program, which is intended to insure farmers’ crops against inclement weather and unexpected price fluctuations, would be expanded in both the House and Senate versions of the farm bill.
Crop insurance, in spite of its name, isn’t like the commercial insurance policies that most Americans are accustomed to.
Though farmers buy different crop insurance policies from a range of private companies, all of those policies are heavily subsidized by the Department of Agriculture—and, in turn, by taxpayers. And while crop insurance has generally been subject to less scrutiny than food stamps, the program is actually far more vulnerable to fraud and abuse than SNAP, according to policy experts, government regulators and federal data.
Unlike the property or casualty insurance policies that most individuals purchase,
taxpayers pay all of the administrative costs and about 60 percent of the different premium costs for crop insurance, according to an official with the Government Accountability Office, the investigative arm of Congress that audits and evaluates government programs. As federal auditors have pointed out,
these large subsidies effectively shield producers from the higher premiums associated with filing frequent or large claims. In other words, there’s an incentive for frequent claims embedded into the very core of the program, leaving plenty of room for widespread abuse.
The last official figure calculated by the GAO estimated that
the crop insurance program lost $117 million to “fraud, waste and abuse” in 2005, or about 4.3 percent of the program's $2.7 billion cost that year. Crop insurance spending has since expanded to roughly $9 billion.
Food stamp fraud, by contrast, accounts for about 1 percent of the program’s cost.
In March, federal investigators uncovered the largest detected crop insurance fraud ring in the country—a $100 million scheme involving insurance agents, claims adjusters, brokers and farmers in eastern North Carolina. “I can tell you it’s everywhere, all across the country,” Jimmy Thomas Sasser, a claims adjuster who was sentenced to four years in prison for his involvement, told the press.