First Purchaser Information & FAQs | Nebraska Soybean Board

Who exactly is the first purchaser?

The entity that first buys the soybeans from a farmer.

Why does the first purchaser have to pay the checkoff assessment?

Through the checkoff, soybean farmers contribute one-half of 1 percent (.005) of the price of each bushel at the first point of sale for farmer-driven research and promotional activities to maximize profit opportunities. The federal Soybean Promotion, Research, and Consumer Information Act (SPARC) requires the assessment to be collected by the first purchaser and reported quarterly.

Do I assess the 1/2 of 1% (.005) before or after discounts, storage, and drying costs?

The net value of the soybean is calculated after quality discounts have been taken including moisture or quality grade. Other fees such as storage, trucking, and drying are services provided by the elevator and are deducted after the assessment has been calculated.

Who sets the percentage that is collected by first purchasers from the soybean farmers?

This was established at the federal level by the United States Department of Agriculture. The states do not have the ability to adjust the percentage collected.

Where does the money go that is collected and submitted to the Nebraska Soybean Board (NSB)?

The funds are split evenly between the NSB and the United Soybean Board (USB). The funds are used for research, education, domestic and foreign markets, including new uses for soybeans and soybean products.

Who should the assessment check be payable to?

Checks are made payable to the Nebraska Soybean Board.

What are the deadlines for submitting the forms/checks?

All assessment forms/checks are to be submitted to the NSB office as follows:

For Soybean purchases made between:

January 1 – March 31

April 1 – June 30

July 1 – September 30

October 1 – December 31

Remit checkoff funds by:

April 30

July 31

October 31

January 31

Is there a penalty for submitting the assessment form/check late?

If a first purchaser fails to remit assessments by the due date, they will be subject to a two percent (2%) late fee compounded monthly. Electronic payments should be received on the last business day of the month. Regarding mailed payments, if the last calendar day of the month falls on a Sunday or holiday, postmark must be the previous postal service business day.

Does a first purchaser need to submit the form if soybeans were not purchased during that quarter?

Yes. Although no soybeans were purchased, you must still submit the form and list “zero” and sign/date by the deadline.

What about soybeans I buy that were raised in another state?

First Purchasers will be required to collect on out-of-state soybeans just as they would on in-state soybeans as this is a national program. Because this is a national program, such soybeans are to be listed by state-of-origin on the remittance reports. State-of-origin is the state in which the soybeans were grown.

What if I don’t collect from the grower?

This is a federal law and funds must be collected. First Purchasers who do not collect the assessments or producers who do not pay will be in violation and subject to a civil penalty of not more than $1,100 for each violation and an additional penalty for willful failure to pay equal to the amount of such assessment.

What if we purchase soybeans from a first purchaser who has already deducted the checkoff?

It is up to the seller to prove the soybeans have already been checked off. You may have them fill out a Non-Producer Status Form (LS-48) for your justification during an audit performed by the Nebraska Public Service Commission.

Is anyone exempt from the assessment fee?

Persons that produce and market only products eligible to be labeled as "100 percent organic" may request exemption from assessment under research and promotion programs. Under Section 1220.302(b) of the Soybean Promotion, Research and Consumer Information Order, “[t]o apply for an exemption under this section, the producer shall submit a request to the United Soybean Board (USB) on an Organic Exemption Request Form (Form AMS-15) along with the required documentation annually. The information on this form is required to make a determination concerning a person's eligibility for exemption.

The producer must provide a copy of the Certificate of Exemption to each first purchaser. The first purchaser must maintain records showing the exempt producer’s name and address and the exemption number assigned by USB. The exemption will apply at the first reporting period following the issuance of the exemption.

First Purchaser Remittance Form – LS-46

SPARC Remittance

Form LS-46 must be completed and accompany the quarterly checkoff remittance payments. The form can be downloaded and will automatically calculate the remittance amount due and can be printed out and mailed with your payment.

Certification of Non-Producer Status Form LS-48

NON-PRODUCER STATUS

Form LS-48 must be completed by a seller to prove the soybeans have already been checked off. This form is to be filled out and kept on file for justification when the first purchaser is audited by the Nebraska Public Service Commission.