Beef Checkoff Program

[Texan]

I'm interested in knowing what the users of this forum think about the $1 per head Beef Checkoff Program that we have in place today. My feeling is that it should be increased during this time of high market prices for all of us, when the impact will not be felt as much. I would personally like to see it at $3 per head, but I know this is not reasonable to hope for, so I limited the poll to the options of doubling it, leaving it the same, or getting rid of it completely. I'd like to hear your comments, as well as see your voting. If you're a cattlemen, but not yet a registered participant on these Boards, please take the time to register so that you can voice your opinion!

The Checkoff Program has undergone some serious challenges lately. Some individuals and groups would like to do away with it altogether. My personal opinion is that it is largely responsible for our record markets today. But, I'm also willing to concede that there are cattlemen who believe just the opposite and are strongly opposed to it based on taxation/free speech concerns.

Most of the ads for beef that we see and hear today are paid for with our Checkoff dollars. The "BEEF. It's What's for Dinner!" campaign is one of the Checkoff's great success stories, in my opinion. A lot of the new beef products on the market today are the result of research funded by Checkoff dollars. For those of you not familiar with the program, below is a brief excerpt from the Cattlemen's Beef Board site describing it. The CBB is responsible for the collection of our Checkoff dollars. For 2003, those assessments were over $84,000,000! I have included a link to their site for more information.


What is the Beef Checkoff?


"The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. The checkoff assessment became mandatory when the program was approved by 79 percent of producers in a 1988 national referendum vote.

"The checkoff is collected by qualified state beef councils, which retain up to 50 cents on the dollar. The state councils forward the other 50 cents per head to the Cattlemen's Beef Promotion and Research Board, which oversees the national checkoff program, subject to USDA review. The 108 members of the Cattlemen's Beef Board represent all segments of the beef industry, including beef, veal and dairy producers and importers, and are nominated by industry organizations and importers and appointed by the U.S. Secretary of Agriculture."

http://www.beefboard.org

 

[certherfbeef]

The CBB is responsible for the collection of our Checkoff dollars. For 2003, those assessments were over $84,000,000!

Texan, I agree 100% with your post. I voted to up the check off to $2. However, the piece I quoted is my problem with the check off. It is probably different in Texas than in Ohio (all things are!!) but the only way to get the checkoff dollars from a breeder is thru the sale barn or other public sale. I know of many private treaty sales that are never deducted the $1. It is all done on the honor system. No, I did not say that Ohio cattleman are dishoronable. Most of them do not agree with the checkoff program, so in turn, do not pay their $1 unless there is no other way around it. The proper papers can be downloaded or picked up at any cattle function sponsered by the cattleman's association. But most times it is over looked. So just think what the assessments would be if the collection process was better monitored.

 

[Caustic Burno]

Whats wrong with you Texan NO MORE TAXES

 

[TR]

I'm not sure I agree with producers funding marketing in which the point of sale will reap the most benefit from, simply because of their markup. I sure don't get 10-12$ a pound for my cattle...........whether they're cut up and packaged or not.

 

[la4angus]

I'm not sure I agree with producers funding marketing in which the point of sale will reap the most benefit from,t.

The point of sale doesn't reap the benefit, except a higher $ amt they get paid commission on.
The money goes for beef promotion, which the producer reaps the benefits of.
It's just like any other industry. Every one knows about Coca Cola, Budweiser beer, Chevrolet cars, but they don't quit promoting, if they did people would forget about them.
I personally would like to see the checkoff doubled to $2.00 per head.

 

[M Gravlee]

I liked Texan's poll so much I added it to the front page.

Thanks, Texan!

 

[TR]

The point of sale invariably has to reap the most benefits, as that's where the consumer's go to get the promoted product. If more money is needed, then why could't the excess be funded by other's who also reap the benefit from increased awareness of the product?

 

[la4angus]

The point of sale invariably has to reap the most benefits, as that's where the consumer's go to get the promoted product.

All the national chains, regional chains and independent grocers promote beef in their own ads. I don't know for sure if any of this money comes from the BeefCheck off or not. Maybe someone else on this board knows, or I can check and find out for sure.

This could turn into a real good and informational discussion.
Thanks Texan

 

[la4angus]

I just called one of the regional chains about their Advertising funding, and was told by the advertising exec. that it is industry standard that each retailer pays 100% for their ads. There is no funding from the Beef CheckOff program.

 

[Lost Hope Ranch]

Whats wrong with you Texan NO MORE TAXES

Mr Burno
I realize you don't want more taxes, but tthe checkoff is not a tax. It was voted on and passed by the cattle producers.
It is used to promote your beef and benefits you the cattle raiser.

 

[redwhiteface]

I'm not sure I agree with producers funding marketing in which the point of sale will reap the most benefit from, simply because of their markup. I sure don't get 10-12$ a pound for my cattle...........whether they're cut up and packaged or not.

TR, I understand your concern. Here is a link that will give you more than enough information to answer any of your questions. Please take the time to look through the site.
http://www.iabeef.org/Aboutus/CheckOffFAQ.aspx

 

[Oldtimer]

I have been a supporter of the checkoff since its inception and think it has been beneficial to the cattle and beef industries.....But I do have some problems with it- mainly the uneveness of the collection- In many areas of the nation if the cattle are sold private treaty, or by contract their is no collection- Collection is only done at the salebarns- Other areas (like the brand inspection states) collect on all sales.. This problem may take care of itself if the USDA ever develops a strong mandatory ID law where all cattle have to be inspected at every change of ownership nationwide-- Until then it is kind of a farce.............

I also question the policy and makeup of the Beef Board- Over the years the rules have been changed to make the control of the checkoff heavily dominated by the NCBA. This money was never intended to promote a political agenda or be an advertising fund source of the packers. If the checkoff survives the Supreme Court challenge, this may need to be addressed or I think we will see another vote challenge come to be which might vote down the checkoff......

 

[J Baxter]

I have to agree with caustic here. The checkoff is a tax even though it was voted on. The collection isn't through contributions, it is mandantory and like any tax if we raise it right now and then the border reopens and we are selling 60 cent steers it will stay at the higher rate.

I know few of you are row croppers, but there is a checkoff on everything. A few years ago it came out that the cotton checkoff dollars were funding elaborate parties in New York - prostitutes and all. They were doing everything with the money but promoting cotton.

$84m - Remember the presidential election and how many adds were run? You could run an advertising campaign like no other. To double it to $168m would you see that much added value from the extra dollars. Maybe we should collect all the checkoff dollars and fund a farm party in the upcoming election.

JB

 

[Marty]

Voted to get rid of it. I don't expect to change anybody's mind but I just don't see how anybody can support the squandering of that many millions of dollars year after year. It's my firm belief that Atkins and the border closure has done more for cattle prices than the checkoff ever has. The dairy producers want to get rid of their checkoff because it's a proven fact that their "Got Milk" ads do not influence anybody to drink more milk. The pork producers checkoff resulted in nothing but a move into industrialized pork production and the all but extinct hog house at the family farm.
It all must be a matter of your circumstance to support or not support. In my area where ranching is the main, if not only, source of income, people do not like the checkoff.

 

[houstoncutter]

Perhaps some of you proponets for the checkoff can set me straight... We have our dollars spent for this lame slogan of" Beef its what for dinner". Now we have had that same tired slogan and advertising for a long time. We would probably still have Robert Mitchum still doing the adds if the poor fella hadn't died. Almost all advertising changes with time, ours has not. Money well spent, not so sure about that. Heres a new slogan that some of us proponets of COOL like.... "If its good enogh for T-shirts its good enough for T-Bones"
Rodney ;-)

 

[Oldtimer]

Here is a post I stole off ranchersnet.--Gives some more perspective on the Beef Checkoff and how it is controlled.................

THE CHECKOFF IS NCBA

------------------------

Posted by jc on Dec-3-04 7:37pm


Beef Checkoff Administration --
Agreement between CBB and NCBA
The Cattlemen's Beef Board (CBB) – officially called the Cattlemen's Beef Research and Promotion Board -- oversees the administration of beef checkoff funds on the national level and is in charge of certification of Qualified State Beef Councils (of which there are 45) and the implementation of the provisions of the Federal Order. The CBB consists of 111 members: 104 domestic beef producers and seven representatives of importers of beef and beef products.

CBB members are not elected to the board by fellow producers. Instead, "eligible organizations" (most of them affiliates of National Cattlemen's Beef Association) submit nominations to the Secretary of Agriculture who then appoints individual board members.

Thirty-seven states have one or more members on the CBB, with membership representative of cattle numbers in each state. A state with 500,000 cattle is entitled to one board member, with additional board members based on each additional 1 million head of cattle.

The remaining 13 states are divided into three regions and represented accordingly. Importer appointments are drawn from nominations from importer associations.

Qualified State Beef Councils collect all beef checkoff dollars from producers. Fifty cents of every dollar goes the CBB for national programs/projects, with the respective State Beef Council keeping the other 50¢ of every $1. Many State Beef Council keep only a portion of its 50¢ and sends the rest to national. Some State Beef Councils sending their entire amount to national. States without a Beef Council remit the entire $1 to the CBB. All checkoff dollars paid by importers also go directly to the CBB.

The CBB is responsible for approving the annual budget for all national checkoff-funded programs.

Deciding on what national checkoff projects to approve or not approve and the amount to spend on each project is the 20-member Beef Promotional Operating Committee.

Ten members of the Operating Committee are elected by the CBB and 10 come from Qualified State Beef Councils (which are aligned with National Cattlemen's Beef Association and the state cattlemen's associations).

Joint Advisory Committee Coordination Agreement
Gives Power to NCBA

On January 30, 1996, a "Joint Advisory Committee Coordination Agreement" was signed by CBB and National Cattlemen's Beef Association (NCBA). With this signing, NCBA gained control of checkoff dollars. And this is where the power of the beef checkoff was removed from the grassroots producers and given to NCBA.

The U.S. Department of Agriculture (USDA) approved the agreement even though as few as 1,000 beef producers voted for it. (This vote was taken at NCBA's convention in 1996.) NCBA claimed to represent the entire beef industry (when in fact NCBA represents only the 3% to 4% of beef producers – its members).

The first part of the Joint Industry Advisory Committee Coordination Agreement reads:

"This Joint Advisory Committee Coordination Agreement (the "Agreement") by and between The Cattlemen's Beef Promotion and Research Board ("Beef Board") and the National Cattlemen's Beef Association Inc. (the "Association") is made this 30th day of January, 1996.

"WHEREAS, the Beef Board was formed pursuant to the Beef Promotion and Research Act of 1985 (the "Act") and the Order (the "Order") promulgated thereto for the purpose of fulfilling the goals and purposes of the Act and the Order: and

"WHEREAS, one of the goals and purposes of the Act and Order is to establish an orderly procedure for the financing and carrying out of a coordinated program of beef promotion and research; and

"WHEREAS, the Association is the successor to the National Cattlemen's Association and the National Live Stock and Meat Board, and one of its stated association purposes is to promote the common business interests of the beef industry in the United States; and

"WHEREAS, the Beef Board and Association each share the common goal of increasing the coordination and communication within the beef industry in order to facilitate the coordination of beef research and beef promotion programs funded by the beef industry; and

"WHEREAS, the Association is an existing nation, non-profit industry-governed organization pursuant to the Act and Order; and

"WHEREAS, the Beef Board and the Association desire to enter into this agreement to document their understandings for improving beef industry communication and increasing beef industry coordination of programs.

"NOW, THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows:

"The parties agree to formulate, finalize, and participate in several standing beef industry advisory committees. Specifically, the parties agree that the following standing advisory committees should be jointly formed following promptly upon the execution of this Agreement. . . "

Committees NCBA Heavy
The agreement then lists the following joint advisory committees (and details it committees structure):

Joint Industry Nominating Advisory Committee – Composed of nine of NCBA's Dues Division directors, nine of NCBA's Checkoff Division directors and nine CBB members.

Joint Industry Budget Advisory Committee – Composed of four directors of NCBA's Dues Division, four of NCBA's Checkoff Division and four CBB members.

Joint Audit Advisory Committee – Comprised of three members: an NCBA Dues director, an NCBA Checkoff Division director and a CBB member. (This committee facilitates coordination and communication between NCBA and CBB concerning general audit planning, general recordkeeping requirements and general oversight of the audit process.)

Joint Industry Evaluation Advisory Committee – Composed of four NDBA Dues Division directors, four NCBA Checkoff Division directors and four CBB members. (This committee's role is to facilitate increased industry-wide communication and coordination with improving the implementation of the beef industry's long-range plan, which NCBA writes.)

Joint Policy/Program Advisory Committees – NCBA's president appoints the chairs of these committees. He also appoints members of these committees.

Agreement Automatically Renewed Annually
According to the Agreement, the agreement between CBB and NCBA "shall be automatically renewed annually unless it is terminated by either party by the provision of six (6) months prior written notice of termination to the other, such termination if valid and timely to occur on the anniversary date of this agreement."

Because NCBA has control of the CBB, it is doubtful that this agreement will ever be terminated – unless producers who do not want NCBA to have so much power step in. And that means taking the beef checkoff to a referendum.

If you want a complete copy of the Joint Advisory Committee Coordination Agreement, contact the Cattlemen's Beef Board at (303) 220-9890.

 

[Texan]

For all of you that voted to get rid of the Checkoff completely---

Do you have any other plan in mind to replace it?

And, if not---

Don't you think that the cattle industry needs to advertise our product and continue to develop new products to compete with the chickens and the pigs?

 

[Oldtimer]

For all of you that voted to get rid of the Checkoff completely---

Do you have any other plan in mind to replace it?

And, if not---

Don't you think that the cattle industry needs to advertise our product and continue to develop new products to compete with the chickens and the pigs?

Texan- As one that has to deal with the public daily in collecting the checkoff, I hear few that oppose the basic premise or the amount-- many say they would give more.... The main thing I continually hear is the fact that they have no choice in where the national money goes-- All has to end up in NCBA's hands... and the fact that the money does not go to promote US BEEF- that since USDA's attorneys ruled that import money is involved it has to be generic beef advertisements....Many feel it promotes a political agenda against their beliefs and mandatorily makes them support it........

If the checkoff is ruled unconstitutional- I would like to see it be made voluntary with half going to the state cattlemans organization of your choice and half going to the national cattlemans organiztion of your choice...And all be used to promote US BEEF...............

 

[houstoncutter]

Texan, let me give you a different prospective. In the vast majority of business the final seller of a product bears the advertising cost. Example, oil, its a product that changes hands a few times before it has been refined to its final state. Gasoline, motor oil, or whatever. Exxon, Shell or whoever sells it bears the cost of advertising. In beef though, the final seller, the packer, gets a free ride all the way to the bank. Hell we even pay for thr resech for his product. As it has been stated much better than I can say, " Beef its whats for dinner" catch phrase aint gonna cut it for some of us.
Rodney

 

[txag]

In beef though, the final seller, the packer,

hmmm.....the final seller is the packer?