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WHAT IS THE SOYBEAN CHECKOFF?
Rate: 0.5% or .005 (one-half of one percent), 50 cents for every $100 of sales. It is to be collected on the net sales price. “Net” is after moisture and quality discounts or premiums, but before any deductions for storage, handling, trucking or other services.

Who Pays: All soybean producers in all states.

Who Collects: The first purchaser (whoever pays the producer-country elevator, terminal, processor, seed producer, trucker or extruder) is responsible for collecting from the producer. First purchasers will be required to collect on all soybeans purchased regardless of the state-of-origin. Failure of the first purchaser to collect the assessment does not relieve the producer of the obligation to pay the assessment.

When: Checkoff collections are due when the farmer is paid. Under deferred pricing, the checkoff may be collected when the deferred contract is signed, or when the contract is settled.

Out-of-State: First purchasers will be required to collect on out-of-state soybeans just as they would on in-state soybeans. Such soybeans are to be listed by state-of-origin (state in which soybeans were grown) on the remittance reports. If the state-of-origin cannot be determined, the producer’s address will be used as the state-of-origin.

Refunds: As of October 1, 1995, refunds from the national soybean checkoff are not available.

Non-Compliance: This is a federal law. 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. A late payment charge of 2% will be added each month to assessments not remitted on time. The late payment charge cannot be waived by the SD Soybean Council. Requests for a waiver of late charges must be submitted to USDA’s Ag Marketing Service.

Forms: The soybean checkoff must be submitted on federal remittance form OMB0581-0093. A first purchaser with multiple locations within a state may submit a single consolidated remittance report for all beans purchased in the state.

Soybeans Under Loan: If a producer pledges soybeans as collateral for a CCC loan and forfeits the beans in lieu of loan repayment, the CCC will collect the assessment at the time of settlement. However, should the producer redeem the beans and subsequently market them, the first purchaser is responsible for collecting the assessment.

Seed Beans: Seed producers need to use the posted county price OR the local market price to establish the market price when calculating the soybean checkoff on soybeans sold as seed. Do not use the seed price. Soybean seed growers are responsible for submitting checkoff on soybeans they raise and sell for seed.

Organic Soybeans: Effective February 14, 2005, any soybean producer operating under an approved National Organic Program who produces and markets only commodities that may be labeled “100 percent organic” is eligible for the federal exemption after February 14, 2005. Contact the SD Soybean Council for additional information.

Non-Producer Status Form: Use this form to give to the buyer of soybeans that have already been checked off. It certifies that you have already collected the checkoff on these soybeans, and therefore the checkoff cannot be deducted again on the same soybeans. Contact our SD office if you would like a copy of this form.