The farmer-funded American Egg Board will face annual audits and a round of ethics training for its undercover attempt to derail a vegan version of mayonnaise, say USDA regulators. Their report could bolster long-shot legislation to end compulsory participation in the two-dozen “checkoff” programs that promote farm goods, from watermelons and limes to beef, cotton and milk.
Utah Sen. Mike Lee filed a bill in mid-July to make participation voluntary for checkoff programs; mandatory contributions amount to “crony capitalism,” he said, accusing the programs of misuse of power and anti-competitive behavior. Lee had no immediate comment on the USDA report. The bill, S 3200, has sat idle in the Senate Agriculture Committee for three months. Without action soon, it will die at the end of this year.
The compliance and analysis office in USDA’s Agricultural Marketing Service found “several instances of inappropriate conduct” by Egg Board staff and board members who tried to thwart the threat of egg-free mayo from Hampton Creek, including siding with a mayo maker that was suing the food company. It did not substantiate the most serious allegations raised by Hampton Creek. The compliance office said the Egg Board “will be subject to annual management reviews for at least the next three years,” and its staff and board members “will be required to take additional ethics training” on proper use of checkoff funds.
To read the AMS documents on its Egg Board investigation, click here.