is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
Corn+Soybean Digest

Checkoff Promotions Pay

Does producer checkoff money being spent on soybean promotion programs really pay? Definitely, according to a study by Gary Williams, Texas A&M University.

The study, commissioned by the United Soybean Board, concludes that investment of funds into foreign market development (FMD) and production research since the early 1970s has been a big plus for U.S. soybean growers.

The investments have tended to increase the size of the U.S. soybean industry and reduce the competitive threat of the South American soybean industry, Williams reports.

The benefit-cost ratios calculated by most studies for domestic generic advertising and promotion programs fall in the range of $2-12 earned per promotion dollar spent. For foreign market promotion programs, the reported benefit-cost ratios are generally higher, from $14 to $60 per dollar spent.

From 1978 through 1995, U.S. farmers invested approximately $163 million of checkoff funds in soybean production research and FMD activities.

Using a modeling approach called Soymod, Williams' research shows that U.S. soybean farmers earn $8 in additional profit for every checkoff dollar invested.

Overall, he says, FMD investments alone have been profitable and have effectively expanded world demand for U.S. soybeans and products.

On the downside, the research shows that the U.S. soybean industry has been underinvesting in FMD and production research. Investing more in FMD should bring more profits to producers' bottom lines, Williams says.

(Gary Williams, Texas Agricultural Market Research Center, Texas A&M University)

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish