Generic promotion and research programs funded through voluntary check-off contributions have existed at the local, state, and regional levels for more than 50 years. These programs were developed to expand the market for the agricultural products of a given industry. To facilitate better coordination across states, encourage equitable participation from all those who benefit from these programs, and create a larger funding base, agricultural industry groups began to seek federal legislative authority to establish mandatory national programs. The first federally authorized program was enacted in 1954, but the majority were created during the 1980s and 1990s. Of the 19 programs that have been authorized, 15 are currently active and 4 are inactive. Industry members who would pay the assessments must approve the creation of a check-off program in a referendum. Legislation for all check-off programs also provides industry members with an opportunity to terminate the program through a referendum. The U.S. Department of Agriculture (USDA), through its Agricultural Marketing Service (AMS), is responsible for (1) developing regulations to implement these check-off programs, in consultation with the affected industry, and (2) ensuring compliance with the authorizing legislation and the agency’s related orders. AMS reviews each board’s budgets, projects, and contracts to ensure that the board does not engage in prohibited activities, such as lobbying. Boards reimburse AMS for its oversight costs. Generally, USDA does not review the effectiveness of the programs. However, the legislation authorizing the Dairy Board requires the Secretary of Agriculture to submit an annual report to the Congress that includes an independent analysis of the Dairy Board’s effectiveness. In addition, USDA’s Foreign Agricultural Service requires evaluations of the check-off projects that receive funding from its Market Promotion Program. The six check-off programs vary organizationally and in the emphasis given to, and methods used to carry out, promotion and research activities. The programs we reviewed vary in the composition of their governing boards, methods used to assess industry members, and ways the programs are initiated and terminated. (See app. I for more detailed information on each board reviewed.) The authorizing legislation for each program specifies the composition of the check-off board. These boards vary by the groups represented—that is, producers, importers, and consumer advisers or public representatives—and by size. For example, the Beef Board has 101 producers and 6 importers on its board, and the Egg Board has 18 producers and their alternates. Board membership generally reflects a geographical mix of the producers assessed and can be changed administratively in some cases to reflect shifts in production. Some boards—Cotton, Egg, and Potato—are authorized to include consumer advisers or public representatives. Members of the boards are appointed for 2- or 3-year terms. The authorizing legislation for each program also sets an assessment level and specifies who in the industry should be assessed. However, these legislative provisions vary in the (1) methods used to calculate the assessment, (2) assessment of imports, (3) refunding of assessments, (4) process for revising assessment rates, (5) arrangements for giving credit to producers for contributions made to qualified state and regional check-off programs, and (6) methods for terminating the program. As table 1 shows, the six check-off boards we reviewed used several assessment methods. Smaller-volume producers are exempt from assessments for two of the six programs—egg and potato. The authorizing legislation for three of the check-off programs—beef, dairy, and soybean—gives credit to producers for contributions they make to qualified state or regional check-off programs. The Egg and Cotton boards have provided funds to state and regional groups, although they are not required to do so. Finally, three of the six programs we reviewed—beef, cotton, and potato—assess importers. In the past, many check-off programs allowed those who had been assessed but did not wish to participate in the program to request refunds of the assessment they had paid. However, most refund provisions have been eliminated. Of the six programs reviewed, only the soybean program continues to offer refunds of up to a maximum of 10 percent of the assessments collected from producers in each state. By statute, USDA must poll soybean producers to see if they want a referendum held to determine support for the refund policy. Such a poll is scheduled for July 1995. The check-off programs we reviewed also differ in their requirements for revising assessment rates. The programs with fixed rates—beef, dairy, and soybean—must have their rates revised by statutory amendment, while the other programs—cotton, eggs, and potatoes—can have their rates revised administratively within their statutory ceiling. For the egg program, any increase must be approved by referendum. All programs have termination provisions that enable producers voting in a referendum to terminate the program. The soybean program provides for periodically polling producers to determine whether they want to have a referendum on continuing the program. The dairy program is unique in that it allows dairy cooperatives to cast bloc votes for their members. However, members are given an opportunity to vote individually if they disagree with their cooperative’s position. Legislation was introduced in January 1995 in the Senate that would eliminate the dairy program’s bloc voting process because of concerns about whether it is fair and equitable. In addition, this proposed legislation would require that the Dairy Board periodically determine producers’ support for the program. No action has been taken to date on this legislation. The six boards vary considerably in the emphasis placed on, and methods used to carry out promotion (domestic and export), research, and consumer and industry information activities. (See apps. II and III for more information on the use of funds and the activities conducted by the six check-off boards.) Five of the six boards spent most of their fiscal year 1994 funds—ranging from about 56 percent for the Egg Board to 75 percent for the Potato Board—promoting agricultural products, principally in the domestic market. The Soybean Board does not promote products in the domestic retail market. However, it does provide information to domestic consumers on the use of soybean products. The boards relied on a mix of methods—television and radio advertising, print media, in-store promotions, and industry newsletters—to communicate their messages to various audiences. The boards also targeted their promotions to certain consumer or industry groups. The three major types of intended audiences were consumers, the food service industry (restaurants and institutions), and manufacturers. The boards also use different advertising methods for various target audiences. For example, the Beef, Cotton, Dairy, and Egg boards have devoted a considerable portion of their promotion budgets to television advertising campaigns intended to influence consumers. Additionally, the Egg Board has used radio tie-ins with major networks to deliver its national campaign message. Promotional efforts have included such campaigns as the Egg Board’s “I Love Eggs” and the Beef Board’s “Beef. It’s What’s For Dinner.” In contrast, the Potato Board’s 1993 consumer advertising concentrated on print advertisements in national magazines. The boards also differ in the emphasis they place on developing foreign markets; funding for export promotion activities ranged from less than 1 percent for the Egg Board to 29 percent for the Soybean Board. In addition, the boards have participated either directly or through related industry contractor organizations in the Foreign Agricultural Service’s export promotion programs—the Market Promotion Program and/or the Foreign Market Development Program. These programs provide funds for projects to promote exports through supermarket promotions, nutritional information, and technical assistance. Federal funding for these two programs has decreased over the past few years from about $237 million authorized in fiscal year 1992 to about $134 million authorized in fiscal year 1994. The percentage of fiscal year 1994 funds spent on research activities and the types of research also varied among the six boards. The percent of check-off funds spent on research varied among the boards, with the Cotton Board being the highest at about 24 percent. Research efforts of the Beef, Dairy, and Egg boards have focused primarily on nutrition education and product development. However, other boards, such as the Cotton and Soybean boards, focus their research efforts on production enhancement and product development. These efforts have included the Soybean Board’s production research on altering the genetic composition of soybeans and product development research on identifying and developing new uses for soybeans, such as soy ink and SoyDiesel fuel. In some cases, the authorizing legislation for a board prohibits it from conducting certain types of research. For example, the Dairy and Beef boards are prohibited from engaging in production research activities. In addition to promotion and research, the six boards spend funds to provide educational information to consumers and industry. In 1994, funds spent in this way ranged from about 1 percent for the Cotton Board to about 30 percent for the Soybean Board. Consumer information involves activities to provide product information to consumers through groups that influence consumers, such as educators, dieticians, physicians, and food manufacturers. These efforts have included the Egg Board’s distribution of educational kits to kindergarten through sixth grade classroom teachers across the United States. These kits contain lessons and activities about food safety, nutrition, and product characteristics. Industry information efforts have included the Beef Board’s distribution of information to commercial meat buyers in the marketing chain to help them in purchasing trimmed beef while maintaining an acceptable profit margin. In planning future activities, check-off boards rely heavily on market research and program evaluation. The boards also work with related state and regional check-off boards and industry groups to jointly plan and carry out program activities. All six boards use the results of market research to evaluate their activities and set priorities for future undertakings. This market research consists of a variety of efforts, including measuring changes in consumers’ attitude and behavior toward a board’s products, assessing consumers’ attitudes toward a board’s advertising campaigns, and identifying new uses and markets for a board’s products, including export markets.