USDA inspector general to review soybean checkoff
WASHINGTON (Reuters) - The U.S. Agriculture Department's independent inspector will review a farmer-funded soybean checkoff program that has been criticized by a soybean group as being mismanaged and wasting money, the head of USDA said on Thursday.
Agriculture Secretary Ed Schafer said the investigation will take at least one year.
"It's only appropriate that an arms-length, independent Inspector General's investigation take place so that we can sort this all out for the benefit of all soybean growers so there's not a question out there about how those checkoff dollars are being spent," Schafer told reporters.
"If there is a question of some inappropriate activity, we can correct it," he added.
The checkoff program collected about $140 million in 2008 from farmers, who contribute 0.5 percent of market price from each bushel of soybeans.
The program promotes marketing and research to increase sales of soybeans, used for biodiesel fuel, vegetable oil and animal feed.
The United States is the world's largest producer and exporter of soybeans.
The American Soybean Association first requested the investigation last month. The farm group charged that checkoff money had been spent on prohibited purposes such as lobbying and excessive salaries by the United Soybean Board, which administers checkoff funds, and by the Soybean Export Council, a joint farmer-industry body.
The United Soybean Board has denied the allegations.
"Ignoring serious allegations of abuse or sweeping them under the rug would have been wrong and would have done a disservice to all soybean farmers who are paying the checkoff," said Johnny Dodson, president of the American Soybean Association.
"Investigating and then correcting any problem areas is the right thing to do for U.S. soybean farmers," Dodson said.
The Soybean Export Council said it welcomes the investigation and pledged to cooperate fully with any inquiry.
The organization said it is confident that its own board has fully investigated and dealt with the issues raised by the American Soybean Association.
(Reporting by Christopher Doering)
