Amendments to the Soybean Checkoff Program

Across-the-Board Organic Exemption

Part of the 2002 Farm Bill, Public Law 107-171.  The salient language applied to all federal commodity checkoff programs. It provided: “Notwithstanding any provision of a commodity promotion law, a person that produces and markets solely 100 percent organic products, and that does not produce any conventional or non-organic products, shall be exempt from the payment of an assessment under a commodity promotion law with respect to any agricultural commodity that is produced on a certified organic farm (as defined in section 6502 of this title.)”

For more information, see Organic Exemption from Assessment. 

Examples of Amendments to Other Checkoff Program

Here are examples of other checkoff programs that have been amended without repeal of the entire checkoff program:

Cotton  

The Cotton Research and Promotion Act, adopted 1966 as Pub. Law 89-502, has been amended four times:

In 1970: Amended by Public Law 91-452: With respect to U.S. Secretary of Ag’s power of enforcement;  investigations:    Struck a provision referring to immunity from prosecution for a person compelled to testify or produce evidence after claiming privilege against self-incrimination.

In 1976:  Amended by Public Law 94-366: Authorized the U.S. Secretary of Ag to appoint consumer representatives up to 15% of the membership of the Cotton Board. Authorized U.S. Secretary of Ag to supplement the checkoff rate in each marketing year by an additional per bale amount not to exceed 1% of the value of the cotton.

In 1990: Amended by Public Law 101-624: Imposed the cotton checkoff on imports. Required the U.S. Sec. of Ag to determine the number of importers to be appointed to the Cotton Board. Required a minimum of at least 1 cotton producer to be appointed to the Cotton   Board from each cotton-producing state. 10% reverse referendum petition provision: Amended to impose a signatory cap:  No more than 20% of petition signatories could be from any single state. 

In 1991: Amended by Public Law 101-237:  Made technical amendments to correct minor errors. 

Pork  

The “Pork Promotion, Research and Consumer Information Act”, adopted 1985 via Public Law 99-198. Amended in 1986 by Public Law 99-154,  substituting “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954.”

Beef

The entire basis for commencement of the national beef checkoff was overhauled by Congress in 1985 after the 1976 effort failed.

In 1976: The original (first attempt at) Beef Checkoff statute was adopted as Public Law 94-294,  enacted May 28, 1976. Entitled the “Beef Research and Information Act,”  it never got off the ground. It provided for commencement upon a positive producer referendum: Before the Sec. of Ag could issue an Order commencing the national beef checkoff, a producer referendum had to be conducted. That producer referendum had to pass by a two-thirds (2/3) vote. Also,  that referendum had a “quorum” requirement: At least 50% of the registered producers in the country had to vote in the referendum.

In 1978: Public Law 94-334: Two-thirds was amended to become “a majority”. 

In 1985: Public Law 99-198: Rewrote the entire checkoff act. Acquired new title: “Beef Promotion and Research Act of 1985”. Deleted entirely the requirement of an initial producer referendum to commence the checkoff program. Instead,  simply declared that the Secretary of Ag shall, within 30 days of receipt of a proposal, publish a proposed Order in the Federal Register for notice and comment. “The Order shall become effective within 180 days after its publication.” Then there was to be a post-commencement producer referendum after the program had been in effect no longer than 22 months to determine whether the program should continue. That post-commencement referendum was conducted May 10, 1988. It was successful: 78.91 percent of cattle producers and importers voting favored the program.

Watermelons

The “Watermelon Research and Promotion Improvement Act”, adopted 1985 as Pub. Law 99-198. Amended in 1993 by Pub. Law 103-89,  which did the following: Expanded the geographic scope of the Act beyond the 48 contiguous states to include Alaska, Hawaii  and the District of Columbia. Included imported watermelons for the first time, but allowed importers  of less than 150,000 pounds of watermelon/year to request refunds. Allowed the Secretary to change the assessment rate without full administrative rulemaking.

Allowed for a producer referendum on the cessation of refunds. Increased the threshold for domestic producers covered by the checkoff. Had been a minimum of 5 acres.   Increased that minimum to 10 acres. Established purchase and volume conditions under which a producer shall be considered a handler.