Remittance Questions and Answers
Q: May I pay our monthly remittance electronically?
A: YES! The national checkoff program allows for funds to be directly deposited from your account to the MSPC’s. Call the soybean office for details on how easy it is and to coordinate this process 989.652.3294.
Q: What is the latest date that I may remit payment for the prior month’s soybeans bought?
A: The federal program requires all remittances to the Michigan Soybean Promotion Committee be postmarked by the last day of the month following the month for which the assessment is being reported.
Q: What if I do not send in the remittance on time?
A: A 2% late payment (compounded monthly) is required to be included when the initial remittance is overdue. To help avoid this and the mandatory late remittance fee, we have furnished you with remittance forms and return postage paid envelopes along with other information designed to facilitate on time payments.
Q: What if I don’t collect from the grower?
A: 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.
Q: If I don’t purchase soybeans during any single month, do I need to submit a report?
A: Basically the answer is no. However, our office would appreciate receiving reports monthly to facilitate accuracy of record keeping and avoiding the extra paperwork generated monthly to request submission of these forms. We request that all reports be returned monthly, even if reporting a “$0″due. With this federal program, spot audits are required and a good “paper trail” will be helpful for all involved. If we do not receive your report monthly, we will contact you in writing to have you update your records with us.
Q: How detailed must I be when completing the report form?
A: Since this is a federal form, all items are to be “filled in.” Please see sample form enclosed behind the tab titled “Remittance Forms.” ALSO…Only the current form #LS-46 (08-00) will be accepted.
Q: What about soybeans I buy that were raised in another state?
A: 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.
Q: Do I assess the 1/2 of 1% (.005) before or after discounts, storage and drying costs?
A: 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.
Q: Who do I make my remittance check payable to?
A: To the: Michigan Soybean Promotion Committee.
Q: How shall we handle the assessment on soybeans delivered on a future contract?
A: It will be the producer’s responsibility to self-assess and remit to our officeon these contracts. First purchasers assess on only those soybeans forwhich a payment is made to the producer.
Q: Who collects the checkoff on soybean Loan Deficiency Payments (LDPs)?
A: There is no checkoff on LDPs. First Purchaser must still do appropriate calculations to remit assessment based on their payment to the farmer. In cases of forfeiture, USDA becomes first purchaser and collects and remits the checkoff to the Qualified State Soybean Boards.
Q: What if we purchase soybeans from a first purchaser who has already deducted the checkoff?
A: 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 for your justification during an audit performed by the Michigan Department of Agriculture and Rural Development.