SOYBEAN GROWERS VOTE TO CONTINUE CHECKOFF FEE

The nation's soybean farmers have voted to continue a program that raises money for advertising, promotion and new-product development of soybeans through a fee on their sales. But two of the top-four soybean-producing states opposed the measure by an almost 2-to-1 margin.

Nationally, 46,060 growers voted to continue the soybean checkoff program and 39,546 voted against it, for a 54 percent majority. The vote was required under the 1990 law establishing the program.

The program was approved despite opposition in Illinois, usually the top soybean-producing state. The Illinois turnout was highest of all soybean-producing states. Illinois growers voted almost 2 to 1 against the measure, 12,864 against and 7,813 for.

Growers in Indiana, the fourth-ranked soybean state, also rejected the checkoff, 6,388-3,680. But in Iowa, traditionally the second-ranked soybean producer, the vote was 8,237-6,129 in favor of the program. Growers in Minnesota, the third-ranked state, voted 3,583-2,656 in favor.

The Department of Agriculture reported that only 20 percent of the estimated 400,000 soybean growers cast ballots in the February referendum.

Under the program, growers pay half a cent for each dollar of sales, raising about $46 million a year. Half goes to the states and half to the United Soybean Board, the national promotion group.

"The benefits of the program more than make up dollars spent by farmer," said Dale R. Ludwig, a Cape Girardeau County soybean farmer who is executive director of the Missouri Soybean Association.

Missouri passed the measure by a 62 percent margin, 2,982 for and 1,933 against, said Ludwig. Cape Girardeau County soybean farmers heavily supported the measure, 80 to 20.

Ludwig said the cost to farmers would be about 3.5 cents per bushel.

"Soybeans are running between $6 and $6.80 a bushel now," he said. "That figures to 3.4 cents per bushel for the program.

"One product, soy ink, which was developed by checkoff dollars has added 4-to-5 cents a bushel to the price of soybeans," said Ludwig. "Soy ink has been on the market since 1987.

"If we can capture the soy diesel fuel market -- especially in mass transportation in the metro areas -- this could add another 6-to-8 cents a bushel to soybeans," said Ludwig.

Meanwhile, five new soybean varieties have been introduced for 1994 as a result of checkoff dollars. Some of the new varieties will be resistant to soybean cyst nematode and provide larger yields. Others will be highly tolerant to phytophthora root rot and have yielded well in the presence of the disease. One of the new varieties, Piatt, was developed in Illinois. It is a late-maturing bean and is resistant to phytophthora root rot but not to cyst nematode.

Check-off funds were used to help develop the new varieties.

Illinois growers expressed concerns about losing their ability to demand refunds. The 1990 law that created the checkoff, replacing the hodgepodge of state checkoffs, raised the fee for growers there.

Indiana did not have a checkoff before the 1990 law. Ohio, a major producer, also did not have a state checkoff, but farmers there voted to continue the national program, 2,818-2,711.

Results of the referendum mean growers can get a refund of their checkoff only once a year. Before the referendum refunds could be demanded every month. Also, the amount of money available for refunds will be limited.

As a result of the vote, the Agriculture Department will poll growers within one year on whether they want a second referendum to determine if any refunds will be allowed.