St. Louis, Missouri
March 12, 2009
Study confirms that soybean
checkoff benefits entire industry
During its recent board meeting in Charleston, S.C., the
United Soybean Board
(USB) was presented with the results of its independent
return-on-investment (ROI) study, which was conducted by Dr.
Gary Williams, director of the Texas Agribusiness Market
Research Center at Texas A&M University. The study found that
the soybean checkoff has returned $6.40 in additional profits to
U.S. soybean farmers for every dollar invested.
“The ROI study is very helpful as it shows the soybean checkoff
is working,” says Jim Stillman, USB Audit and Evaluation Chair
and a soybean farmer from Emmetsburg, Iowa. “We are investing
dollars and getting a $6.40 return for every one we invest. You
think of all the different projects the checkoff invests in, and
to see that kind of return for every dollar that we have spent,
it’s obvious we’re driving demand throughout the world for our
product.”
Also presented to the board at the Charleston meetings were the
outstanding results of the annual audit, which gave high marks
to the checkoff’s fiscal year 2008 financial records.
“It’s very rare to have a completely clean audit,” said Marc
Curtis, USB Treasurer and a soybean farmer from Leland, Miss.
“I’m proud of the results and proud of the USB staff. Without
them, it wouldn’t have happened. These results show that the
board is dedicated to making sure everything is accounted for.
They validate what we’re doing and the financial accounting
system at USB. It tells us we’re doing things right.”
Mandated by the Federal Agriculture Improvement and Reform Act
of 1996 and conducted every five years, the study was designed
to answer two questions. First, what have been the effects of
the soybean checkoff programs on U.S. and world soybean and
product markets? And, second, has the soybean checkoff program
benefited soybean producers?
The researchers found the answers to those questions were
overwhelmingly positive. Major conclusions of the study include:
- The soybean checkoff has
increased the size and profitability of the U.S. soybean
industry.
- The soybean checkoff has
supported soybean and product prices each year by an average
of 2 percent above what prices would have been without the
checkoff.
- The soybean checkoff has
boosted the annual level of soybean, soybean meal and soy
oil exports by an average of 5 percent, 15 percent and 24
percent, respectively.
- The soybean checkoff has
reduced the competitive threat of the South American soybean
industry.
- The soybean checkoff has
acted as a countercyclical force in the soybean industry,
reducing the severity of market downturns in bad years and
adding to growth and profitability in good years.
The ROI study and annual audit are
just two of several methods the checkoff uses to maintain fiscal
responsibility and transparency. USB Chairman Chuck Myers, a
soybean farmer from Lyons, Neb., said such exercises keep the
checkoff farmer-leaders pointed in the right direction when it
comes to investing checkoff dollars.
“We’re constantly working to find out through surveys and
meetings what we need to be working on and where we need to be
investing soybean farmers’ checkoff money,” Myers said. “I think
we’ve been very effective in doing that, and the success of the
soybean checkoff shows just that.”
USB is made up of 68 farmer-directors who oversee the
investments of the soybean checkoff on behalf of all U.S.
soybean farmers. Checkoff funds are invested in the areas of
animal utilization, human utilization, industrial utilization,
industry relations, market access and supply. As stipulated in
the Soybean Promotion, Research and Consumer Information Act,
USDA’s Agricultural Marketing Service has oversight
responsibilities for USB and the soybean checkoff. |
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