ST. LOUIS (February 20, 2020) — According to a recent independent economic study, the United Soybean Board (USB) soy checkoff continues to translate farmer investments into significant benefits for American soybean farmers. The results of the 2019 return-on-investment (ROI) study found that U.S. soybean farmers received $12.34. in added value for every dollar they invested in the soy checkoff.
Third-party study finds soy checkoff investments provide added value, even in recent down-market times.
“These have been some of the toughest years to be a soybean farmer,” said USB Chairman Jim Carroll III, a soybean farmer from Brinkley, Arkansas. “We have to be wise and careful with our investments in this business, and I’m proud that our soy checkoff continuously adds value to our industry.”
Half of Nebraska’s Soybean Checkoff dollars go to the United Soybean Board’s national checkoff, and Nebraska Soybean Board (NSB) Executive Director Victor Bohuslavsky said it’s been a more-than-worthwhile investment.
“We’re beyond pleased with the results of the 2019 ROI study,” Bohuslavsky said. “While we work with our own state checkoff dollars to maximize profit opportunities within our borders, we’re also contributors to the national checkoff and it’s reaped great rewards for our Nebraska growers.”
The ROI study analyzed the demand- and supply-enhancing activities funded by the soy checkoff between 2014–18 and was conducted by Dr. Harry Kaiser, a leading research expert at Cornell University in the field of agricultural economics and its application to commodity checkoff programs.
“The study finds that USB’s activities have had a positive and significant impact on soybean demand between 2014–18,” Dr. Kaiser said.
Key findings of the study, required by the U.S. Department of Agriculture, included:
- U.S. soybean farmers received $12.34 in added value for every dollar they invested in the soy checkoff over the last five years.
- Every dollar U.S. soybean farmers invested in international promotion activities produced $17.95 in return value.
- Soy checkoff investments made toward demand-enhancing research and promotion returned an average value of $18.18.
- Collaborative soy checkoff investments in production research that leverage industry and academic partners continue to provide promising returns to U.S. soybean farmers, returning an average value of $9.42.
These estimates were reached using econometric models of domestic and international soybean markets that allowed the research team to net out the impacts of other important factors—such as other crops, substitute commodities, income, exchange rates and economic conditions in importing countries—to determine the estimated impact of the soy checkoff’s work and investments.
About the USB: USB’s 78 volunteer farmer-directors work on behalf of all U.S. soybean farmers to achieve maximum value for their soy checkoff investments. These volunteers invest and leverage checkoff funds in programs and partnerships to drive soybean innovation beyond the bushel and increase preference for U.S. soy. That preference is based on U.S. soybean meal and oil quality and the sustainability of U.S. soybean farmers. As stipulated in the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff. More information on the soy checkoff is available on the United Soybean Board’s website.
About the NSB: The nine-member Nebraska Soybean Board collects and disburses the Nebraska share of funds generated by the one-half of one percent times the net sales price per bushel of soybeans sold. Nebraska soybean checkoff funds are invested in research, education, domestic and foreign markets, including new uses for soybeans and soybean products.