Remember when the American Egg Board tried
to intimidate Hampton Creek for making plant-based mayo? The AEB’s then president,
Joanne Ivy, wanted the USDA to take action against Hampton Creek to stifle competition
and tried
to get its products out of Whole Foods. She even helped Unilever with its unsuccessful
lawsuit against the plant-based company. Ivy resigned
following the scandal.
The AEB administers a USDA checkoff program that funds egg
industry research and promotion through surcharges to producers on eggs sold. The
USDA also oversees meat, dairy, and other agricultural product checkoff
programs. In total, agricultural checkoffs raise more than $650 million each
year. By law, these programs are supposed to promote the beneficiaries’ own
products, not attack competitors. Additionally, the checkoff boards are not supposed to influence
agricultural policy. But because these boards are in bed with the industries
their programs promote, impermissible policy influence is inevitable.
For example, The Humane Society of the United States filed a
lawsuit alleging that the National Pork Board—a checkoff board—made an illegal
backroom deal to purchase the slogan “Pork: The Other White Meat from lobbyist
group the National Pork Producers Council. The lawsuit claims that the overly
inflated $60 million purchase of the slogan was an impermissible use of
checkoff funds for several reasons, not the least of which is that the slogan
isn’t even used anymore and the NPB is still paying for it.
Now congressmen from both sides of the aisle aim to secure
additional oversight of government checkoff programs to avoid such abuse.
Senators Cory Booker and Mike Lee have introduced the Commodity Checkoff
Program Improvement Act of 2016 to codify checkoff program transparency
requirements, such as disclosures and audits, and prohibited activities. If
passed, the bill would deter corrupt acts, such as those undertaken by former
AEB president Joanne Ivy, and help ensure a fairer marketplace so that
plant-based products can thrive!