WATERLOO - Allegations of misconduct against two national soybean groups will spur a government investigation.

U.S. Secretary of Agriculture Ed Schaffer ordered the U.S. Department of Agriculture's Office of Inspector General last week to conduct an audit of the United Soybean Board and the U.S. Soybean Export Council and investigate accusations of misconduct by employees and directors. The groups decide how to spend millions of dollars of national soybean checkoff funds each year, predominantly for product education, marketing, research and development.

The American Soybean Association, the national policy-making arm for soybean growers, requested the investigation. The group contends the soybean board and export council are no longer looking out for the best interest of producers. The association alleges abuse, wasteful spending and mismanagement of checkoff funds.

Schaffer signed a memorandum recommending the investigation on Jan. 7.

"ASA is doing what is in the best interest of soybean farmers ethically, legally and financially," said ASA president Johnny Dodson, a Tennessee grower, in a statement. "Ignoring serious allegations of abuse or sweeping them under the rug would have been wrong and would have done a disservice to all soybean farmers paying the checkoff."

The soybean checkoff is a self-imposed tax of a half-percent on all soybean sales, which is split between state and national farmer-run soybean boards. An estimated $140 million in checkoff funds were collected last year, about triple the amount compared to the checkoff's first full year in 1992.

The ASA believes too much money has caused corruption. The United Soybean Board and U.S. Export Council deny any wrongdoing.

The ASA, among other things, believes the entities wasted checkoff dollars and are too bent on self-preservation.

Apparently, soybean growers from Minnesota, Mississippi and Missouri don't believe in the ASA's quest. Grower associations from each state recently founded the U.S. Soybean Federation, which will act as a new advocacy and policy making group.

A federation statement says its only focus is to vigorously represent growers in the federal legislative process.

"It is clear to us that ASA's continuing actions are not in the best interest of soybean farmers as ASA is jeopardizing the national soybean checkoff," said newly elected federation president Lance Peterson of Underwood, Minn., in a press release.

The ASA calls the federation a "radical" group, and its formation "illogical."

The attempt to divide the soybean industry will do more harm the good, the association contends. ASA Chairman John Hoffman, who farms near Waterloo, said the action is not in the best interest of farmers.

"Unfortunately, this move illustrates all too well some of the problems that have been alleged about the national checkoff, namely the lack of transparency, accountability and the willingness to spend tremendous resources for self-preservation - even when these actions aren't in the best interest of soybean farmers," Hoffman said in a statement. He was unavailable for comment.

Hudson soybean farmer and former Iowa Soybean Promotion Board member Alan Karkosh is skeptical whether the ASA's motives are genuine, when it comes to calling for an investigation of the United Soybean Board and U.S. Export Council. While in state and local leadership roles, Karkosh said he watched the rift between ASA and the USB develop.

He didn't like the direction of the ASA and let his membership lapse last year. Karkosh thinks ASA leaders are mad the USB no longer contracts with the ASA to provide services, which means less money in ASA's pocket.

"The USB fired them and they're (ASA) going down kicking and screaming. I'm not sure (the ASA) is doing their members justice," Karkosh said. The Iowa Soybean Association supports the investigation, but is not taking a position on the allegations by the ASA. It does not support a new national soybean organization, the state group said.

Contact Matthew Wilde at 291-1579 or matt.wilde@wcfcourier.com.