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Seed(y) money(Waterloo-Cedar Falls Courier (IA) Via Acquire Media NewsEdge) Dec. 28--WATERLOO -- A surcharge on soybean sales helped bring prosperity for producers and corruption, soybean leaders say. The American Soybean Association requested a government investigation of the United Soybean Board, which operates the national soybean checkoff, and the U.S. Soybean Export Council earlier this month. A half-percent of all soybean sales is split between state and national farmer-run soybean boards to pay for product education, marketing, research and development. Waterloo farmer and ASA chairman John Hoffman said the checkoff has done great things through the years. It's credited with finding more uses and buyers for the country's most popular legume. There's no question, he said, that it has put more money in farmers' pockets. As collections soared -- an estimated $140 million this year, or more than triple the amount compared to the first full year in 1992 -- so have problems, Hoffman said. The American Soybean Association alleges abuse, wasteful spending and mismanagement of checkoff funds. The United Soybean Board, made up of 68 farmer-directors, says the allegations are "categorically untrue." Hoffman doesn't buy the denial. He said there are too many instances of misappropriation and mismanagement to ignore, such as paying more for staff salaries and administrative costs than allowed. The ASA doesn't take pleasure in calling for an investigation by the Office of Inspector General, Hoffman said. The move is in the best interest of its membership, he said. "I want to stress absolutely the state checkoff boards do a tremendous job of managing money and administrating money in a efficient ... totally ethical way," Hoffman said. "Northeast Iowa farmers have the right to deserve the same accountability from the national checkoff." The American Soybean Association and the United Soybean Board are separate entities. The ASA is the policy-making arm for soybean growers, while the United Soybean Board focuses on industry relations and market access, among other things. The Export Council is funded with checkoff and taxpayer dollars. Since 1992, soybean farmers nationwide have contributed more than $1.2 billion to the checkoff. Hoffman believes this large sum of money led to corruption. He believes the board's farmer-directors were led astray by staff and legal counsel bent on self-preservation. ASA directors unanimously voted for the investigation during a meeting on Dec. 10. "Some directors got poor advice from legal counsel. I don't know how deep it goes, if they (farmer-directors) had knowledge of the wrongdoing or not, but it needs to be investigated," Hoffman said. Without going into specifics, the ASA alleges the United Soybean Board and the Export Council: Wasted checkoff and government funds. Violated salary and administrative caps of 1 percent and 5 percent, respectively. There are concerns USB office staff members on the "books" of contractors actually were located at the USB office based in St. Louis. Used checkoff funds for prohibited purposes, like lobbying politicians. Failed to take corrective action and carry out an independent investigation of wrongdoing at the Export Council. Hoffman called it a cover up. Abused authority. There are complaints that USB staff and directors have utilized coercive and bullying tactics to silence criticism from state checkoff organizations. Hired an accountant that's an employee of USB's largest contractor creating a conflict of interest. ? Spent too much on self-promotion and self-perpetuation. ? Spent too much on self-preservation, such as "producer attitude" surveys conducted twice a year. Jim Stillman, a soybean farmer from Emmetsburg and member of the United Soybean Board executive committee, says he is disappointed with the ASA and believes the United Soybean Board is working in the best interest of farmers. "I believe the investigation (if approved) will show we spend money very reasonably. We all take the job serious," Stillman said. "We're working to make soybean producers profitable." The USB said the proof is in the pocketbook. A study paid for by the USB said every checkoff dollar earned farmers $6.75. USB officials say the tens of millions of dollars spent on research and marketing has greatly improved production and sales. Some areas include: U.S. soybean production has grown to nearly 3 billion bushels in 2008 from 1.98 billion bushels in 1991, according to the U.S. Department of Agriculture. Soy exports grew to a record 1.5 billion bushels this year worth $12 billion. USB said soy biodiesel use has grown from 25 million gallons in 2002 to about 700 million gallons in 2008. Apparently the nation's 663,880 soybean growers agree. According to a recent producer attitudes survey sponsored by the checkoff, 74 percent of soybean farmers strongly support the self-imposed tax. "We're constantly doing over site of contractors. ... We'll spend (checkoff dollars) wisely," said Stillman, a member of the USB's Audit and Evaluation Committee. Ken Eggena, a Denver farmer and member of the Iowa Soybean Association, is a proponent of the checkoff but didn't realize the turmoil surrounding it. Leaders from both soy commodity groups think most farmers are in the same boat. "I put my trust in John (Hoffman) and other higher ups that things are done appropriately and they'll help sell our soybeans. ... There could be corruption there," Eggena said. Commodity officials say the timing of the investigation request may influence the future of the checkoff. Every five years, producers have the opportunity to request a vote to renew the checkoff or dissolve it. It just happens to occur this spring or early summer, officials said. Ten percent of eligible soybean producers (sold at least $250 within the past year) must request a vote via petition. If that doesn't happen, the checkoff will continue. Five years ago, only 3,206 farmers requested a vote. Well short of the 66,388 needed. Blake Hollis, former leader of the Black Hawk County Corn and Soybean Association, didn't know about the conflict between the ASA and USB. He could see it having an impact on the checkoff's fate. "If there is serious mismanagement, perhaps an overhaul is needed," Hollis said. To some people, the rift between the soy commodity groups is viewed as farmer versus farmer. Stillman hopes a compromise can be worked out with the ASA before the government steps in. If not, he's confident the USB will be exonerated. "I'm sure if we sit down farmer-to-farmer, it can be worked out. We (USB and ASA) need each other," Stillman said. Hoffman isn't so sure. He said it's up to U.S. Secretary of Agriculture Ed Schaffer to order the investigation. Hoffman met with Schaffer recently, but the secretary didn't say when or if it would happen. "It was an open and frank discussion," Hoffman said. "He recognized the seriousness of the allegations." Contact Matthew Wilde at (319) 291-1579 or [email protected]. To see more of the Waterloo-Cedar Falls Courier, or to subscribe to the newspaper, go to http://www.wcfcourier.com/. Copyright (c) 2008, Waterloo-Cedar Falls Courier, Iowa Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |