Questionable Disaster Payment Refunds on Hold

July 25, 2000

USDA’s Farm Service Agency will complete an internal review before any further action is taken to obtain refunds of disaster payments already made to South Miami-Dade County, Florida, farmers. Agriculture Secretary Dan Glickman says FSA is to take a "detailed and thorough look" at resolving the situation before going through a formal appeals process.

Internal agency reviews indicated that more than $3 million in disaster payments made under several programs were questionable. FSA had asked for refunds of the payments in order to maintain consistency within the national disaster program and ensure compliance with all applicable laws and regulations.

FSA had previously asked producers to repay questionable disaster assistance payments following an internal review of the operation of the South Miami-Dade County FSA office. Hearings on producers' appeals of the FSA request for refund began the week of July 17, and were scheduled to continue for four more weeks.

Glickman asked the National Appeals Division to postpone any further hearings, and to subject any hearings that have started to an indefinite continuance to see if there is any potential for resolving these cases.