The American Soybean Association (ASA) today expressed support for the National Soybean Checkoff Program before the U.S. Department of Agriculture’s Joint Task Force on Research & Promotion Programs. Checkoff programs are a vital means for farmers to invest their own money in strengthening market demand, improving productivity, and increasing profitability. One-half of one percent of the delivered price is deducted for the checkoff when farmers sell their soybeans.

ASA Chairman Mark Berg said, "As the trade association that first supported, developed and lobbied for the soybean checkoff program, ASA supports the original design and mechanics of the soybean checkoff. Accordingly, we support the comments of the United Soybean Board and urge the Department not to create unnecessary or burdensome guidelines or procedures that will impede the effectiveness of the checkoff."

The growth in the U.S. soybean industry since passage of the checkoff has been unparalleled. USDA forecasts that farmers will plant 73.5 million acres of soybeans in 1999, an increase of 14 million acres since 1991. The United Soybean Board (USB) reports a 20 percent increase in yields over the past ten years. These increased yields, which are partially driven by checkoff funded research, have helped lower farm production costs. The soybean industry has worked hard to help maintain farmer profitability during this period of unprecedented growth. Increased demand, particularly from export demand stimulated with checkoff funds, has provided for the consumption of 10 million additional acres of soybeans.

ASA worked directly with Congress in 1990 to develop the structure of today’s national soybean checkoff. ASA’s goal was to develop a program that helped improve soybean industry profitability and that was responsive to the needs of soybean farmers.

"Nine years after passage of the checkoff, ASA is proud of the work and accomplishments of the soybean checkoff and the work of the United Soybean Board and the Qualified State Soybean Boards that administer our checkoff funds," Berg said.

ASA urged the Task Force to incorporate several key principles into its review. First, the Task Force must understand the heritage of national checkoff programs as programs created and managed by farmers, for farmers. Second, checkoff programs have a solid history of effectively building consumer demand and improving farm profitability. And finally, farmers have put in place program management structures that provide for appropriate input, review and accountability.

"The success of today’s commodity checkoff programs lays in the direction and control granted producers for establishing programs that meet the needs of our dynamic industry," Berg said.

ASA’s statement today focused on the accountability built into the soybean checkoff and how producer input drives the development and implementation of checkoff funded programs. ASA also conveyed a strong belief in the effectiveness of the soybean checkoff in meeting the soybean industry’s vision for improved profitability.

ASA’s programs and policies are developed with input and oversight from nearly 140 producers who serve as the association’s Voting Delegates and the 45 producers who serve on ASA’s Board of Directors. As the trade association for the soybean industry, ASA represents soybean farmer interests in Washington, D.C. ASA also serves as the international marketing contractor for the United Soybean Board through its network of fourteen international offices and a St. Louis-based trade staff.

"Within all phases of ASA’s relationship with USB, producer input, thorough oversight, and professional accountability are the mainstays," Berg said. "As a soybean industry partner, ASA’s leaders have evaluated, endorsed, and actively supported the soybean checkoff program through resolutions, Congressional testimony, and producer communications."

As a contractor, ASA’s international programs are reviewed and evaluated by USB’s producer leaders and the U.S. Department of Agriculture. The USB International Marketing Committee guides the development and implementation of ASA’s checkoff funded international marketing efforts. ASA also works closely with USB’s auditors who verify that ASA’s use of checkoff funds complies with the USB management agreement. And finally, ASA’s own auditors perform a complete annual financial audit of reviewing all of ASA’s funding sources. The collective oversight and input inherent within this structure ensure that checkoff funds serve all producers in an ethical, efficient, and effective manner.

"The essential point is that these layers of separation and review within our structure provide thorough oversight regarding the use of checkoff funds," Berg said. "Our checkoff is both effective and accountable. Most importantly, our checkoff is farmers investing in their future."