The soybean checkoff is a national, farmer-funded program designed to drive demand and create opportunities for U.S. soybean farmers through strategic investments in research, promotion, and education. It's a vital mechanism that supports the growth and profitability of the American soybean industry.
How the Soybean Checkoff Works
The national soy checkoff was established as a result of legislation passed in the 1990 Farm Bill. An Act and Order created this program, mandating contributions from all soybean farmers to ensure widespread participation and robust funding.
Here's how the contribution mechanism operates:
- Mandatory Contribution: All soybean farmers are required to contribute to the checkoff.
- Contribution Rate: Farmers contribute 0.5% of the net market price for each bushel of soybeans they sell.
- Collection Point: This contribution is collected at the first point of purchase, meaning the elevator or buyer typically deducts the checkoff amount when farmers sell their soybeans. This ensures efficiency and broad compliance.
The Purpose of Checkoff Funds
The funds collected through the soybean checkoff are strategically invested by farmer-led boards to benefit the entire industry, not individual farmers or companies. The primary goals include:
- Research and Development: Funding innovative research to improve soybean yields, develop pest and disease resistance, enhance soil health, and create new uses for soy. This includes genetic research, sustainable farming practices, and value-added product development.
- Market Development and Promotion: Expanding domestic and international markets for soybeans and soybean products. This involves promotional campaigns to highlight the versatility and benefits of soy, identifying new trade opportunities, and addressing trade barriers.
- Education: Providing educational resources to farmers on best management practices, new technologies, and market trends. It also involves educating consumers and industries about the benefits and uses of soy.
Key Investment Areas:
- New Uses: Developing non-food applications for soy, such as bio-based plastics, asphalt, engine oils, and renewable fuels, opening up new demand sectors.
- Animal Agriculture: Supporting research and promotion that reinforces soy's role as a primary protein source in livestock, poultry, and aquaculture feed.
- Human Nutrition: Promoting the health benefits and culinary versatility of soy-based foods.
- Production Research: Investing in cutting-edge agronomic research to help farmers produce more efficiently and sustainably.
Oversight and Accountability
The soybean checkoff program is managed by farmer-led boards at both national and state levels. The primary national organization is the United Soybean Board (USB). These boards are comprised of volunteer soybean farmers who are nominated by state soybean organizations and appointed by the U.S. Secretary of Agriculture.
- Farmer-Led Direction: Farmers themselves decide how checkoff funds are invested, ensuring that programs align with the needs and priorities of the industry.
- Government Oversight: The U.S. Department of Agriculture (USDA) provides oversight of the checkoff program to ensure that funds are used in compliance with the laws and regulations established by the 1990 Farm Bill and subsequent orders. This ensures transparency and accountability in how farmer contributions are utilized.
Benefits to Farmers
The collective investment through the soybean checkoff yields significant returns for soybean farmers, creating a more robust and competitive industry.
- Increased Demand: By funding research into new uses and promoting soy products globally, the checkoff helps to increase overall demand, which can lead to better prices for farmers.
- Enhanced Profitability: Investments in production research and best practices help farmers reduce costs and improve yields, directly impacting their bottom line.
- Market Access: Efforts to open new export markets and remove trade barriers provide more opportunities for farmers to sell their soybeans.
- Sustainability: Funding for sustainable farming research helps farmers adopt practices that improve environmental stewardship while maintaining productivity.
The soybean checkoff is a collective effort that empowers farmers to invest in their own future, ensuring the long-term viability and success of the U.S. soybean industry.
