First Purchasers FAQ
The entity that first buys the soybeans from a farmer.
Through the checkoff, soybean farmers contribute one-half of 1 percent (0.005) of the price of each bushel at the first point of sale for farmer-driven research and promotional activities to maximize profit opportunities. The federal Soybean Promotion, Research and Consumer Information Act (SPARC) requires the assessment to be collected by the first purchaser and reported quarterly.
The net value of the soybean is calculated after quality discounts have been taken including moisture or quality grade. Other fees such as storage, trucking, and drying are services provided by the elevator and are deducted after the assessment has been calculated.
This was established at the federal level by the United States Department of Agriculture. The states do not have the ability to adjust the percentage collected.
The funds are split evenly between OSC and the United Soybean Board (USB). The funds are used for research, education, domestic and foreign markets, including new uses for soybeans and soybean products.
Checks should be made payable to Ohio Soybean Council and mailed to the following address:
Ohio Soybean Council
918 Proprietors Road, Suite A
Worthington OH 43085
All assessment forms/checks are to be submitted to the OSC office as follows:
|For soybean purchases made between||Remit checkoff funds by|
|January 1 – March 31||April 30|
|April 1 – June 30||July 31|
|July 1 – September 30||October 31|
|October 1 – December 31||January 31|
Yes, if the checkoff assessment was not postmarked by a first purchaser by the due date, the entity remitting must be charged a late fee of 2 percent for each month that they are late in remitting. The late fee is compounded monthly until paid.
Yes. Although no soybeans were purchased, you must still submit the form and list “zero” and sign/date by the deadline.
First purchasers will be required to collect on out-of-state soybeans just as they would on in-state soybeans as this is a national program. Because this is a national program, such soybeans are to be listed by state-of-origin on the remittance reports. State-of-origin is the state in which the soybeans were grown.
This is a federal law and funds must be collected. 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.
It is up to the seller to prove the soybeans have already been checked off. You may have them fill out a Non-Producer Status Form (LS-48) for your justification during an audit performed by the Ohio Department of Agriculture.
All first purchasers are required to collect and report the assessment fee unless the farmer is 100 percent organic and has filed papers stipulating they grow organic soybeans on a certified organic farm.
As of October 1, 1995, refunds from the national checkoff were eliminated.
Forms and Resources