Saint Louis, Missouri
December 10, 2008
"Serious ethical, legal, and
financial allegations have been raised about how farmer checkoff
funds and program activities are being conducted," said
ASA President John
Hoffman, a soybean producer from Waterloo, Iowa. "These
significant allegations have caused ASA to ask the Inspector
General to conduct an investigation and audit so that the basis
of the allegations can be impartially investigated to find the
truth."
Allegations include the improper and wasteful expenditure of
both checkoff and federal funds; potential evasion of mandated
salary and administrative spending caps by USB; conflicts of
interests at USB; use of checkoff funds for prohibited purposes
by USB; and wasteful and excessive spending by USB. There are
additional allegations concerning improper USB oversight and
tolerance of actions that have taken place at the USSEC, an
entity created by USB and ASA in October 2005. These allegations
include improper conduct by a USSEC employee at USSEC functions;
the firing of whistleblowers; improper employee relationships;
contracting violations; management malfeasance and the inability
of ASA Directors serving on USSEC Board to obtain an independent
and objective investigation of the allegations.
"With USB and USSEC, we are dealing with entities that are
spending tens of millions per year in soybean farmer checkoff
dollars and U.S. taxpayer funds," Hoffman said. "As the policy
organization that represents U.S. soybean farmers, it is ASAs
responsibility to ensure that the soybean checkoff, and other
entities the checkoff has created, are operating in an
accountable and transparent manner in the best interest of
soybean farmers."
ASA is the only national, non-governmental, non-profit trade
organization that represents soybean farmers in the United
States. It was ASA and its state affiliates that developed the
concept for national soybean checkoff in the late 1980s and then
worked with Congress and USDA to establish the national soybean
checkoff in 1990.
"ASA and its members believe that since federal taxpayer funds
or the federally mandated checkoff funds comprise all of the
operations of USB and USSEC, we are compelled to petition for an
OIG investigation to ensure these allegations are examined in an
unbiased and fair way, something that ASA has tried to do within
the framework of USB and USSEC, but has been thwarted in so
doing by USB Directors and their attorneys," Hoffman said.
"ASA firmly believes it is doing the right thing for the soybean
farmers by asking the Inspector General to conduct a full
investigation of the serious allegations of wrongdoing that have
surfaced," Hoffman said. "ASA believes the national soybean
checkoff, as currently structured and operated, is no longer
responsive and accountable to soybean farmers. The failure of
USB leaders to take decisive action on these particular matters
is indicative of how USB is no longer accountable and responsive
to the very soybean farmers who are paying funds into the
checkoff program."
Soybean checkoff funds are invested in program areas such as
Domestic and International Marketing, New Uses Development,
Production Research and Producer Communications. For more
information about the soybean checkoff, see
www.soybeancheckoff.com.
During the national checkoffs nearly two decades of operation,
soybean farmers have paid $1.3 billion into the checkoff. At the
higher price and acreage levels experienced recently, checkoff
collections from soybean farmers in fiscal year 2008 are
estimated to exceed $140 million -- three and half times the
amount collected in 1992 when the national checkoff first began.
Soybean farmers today are paying two to four times more to the
checkoff fund than they have historically, and significant
allegations of wasteful spending and abuse have emerged.
The ASA Board of Directors approved calling for an Inspector
General investigation at the Boards regularly scheduled winter
meetings, which commenced yesterday in Saint Louis. During the
meeting, Board members had the opportunity to review the
allegations of improper activities that have surfaced and voted
unanimously to take action in the best interest of U.S. soybean
farmers. ASA has shared a summary of its concerns and
allegations with state and national soybean leaders and key
industry stakeholders. The summary document is also available at
www.soygrowers.com/newsroom/releases/documents/summary.pdf.
"ASA does not take this action lightly but with great
reluctance," Hoffman said. "ASA must do what is in the best
interest of soybean farmers ethically, legally, and financially.
ASA believes strongly in the need for a national soybean
checkoff program but one that is accountable, transparent and
responsive to soybean farmers, and spends their dollars wisely.
Over the coming months, ASA will begin announcing specific steps
that it will take to ensure that the national soybean checkoff
is accountable to soybean producers and spends their money
prudently." |
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