January 9, 2009

The US Department of Agriculture's inspector general will investigate allegations that millions of dollars paid by US soy farmers are being misused by an entity created by the department and Congress, USDA Secretary Ed Schafer said Thursday (January 8).

Schafer called the allegations "very serious" and said it was "only appropriate that an arms-length, independent inspector general investigation take place so that we can sort this out for the benefit of all soy growers."

The farm group American Soybean Association accused the United Soybean Board in December of wasting farmers' money on such things as excessive salaries and lobbying efforts.

The USB manages federally collected "checkoff" funds for the development and promotion of soy and soy products. The board, which is expected to collect more than US$140 million in checkoff contributions for fiscal year 2008, is directed by a core group of volunteers appointed by the secretary of the US Department of Agriculture.

The USB, in a December response to the allegations, said the farm group's accusations were "categorically untrue."

"If the US Department of Agriculture deems it necessary, USB welcomes a USDA Office of Inspector General audit of any and all of its operations, contractor operations and projects," the USB said.

Schafer said Thursday an investigation would be necessary "so that all soy growers can be comforted" by knowing that the dollars they contribute to the fund will be spent appropriately.