KY farmers support Checkoff

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Ky. cattle farmers back $1 fee
Court case won't end payments
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By Marcus Green
[email protected]
The Courier-Journal



Photos by Mary Ann Gerth, The C-J
Voting in a recent referendum, Kentucky's beef farmers overwhelmingly supported paying a fee of $1 per head of cattle sold to finance efforts to market beef. "I just think it's a valuable tool to market our product," said farmer Bobby Glass, who raises cattle in Shelby County.

Some ranchers in South Dakota and Montana argue that they are illegally forced to support the program.

Kentucky cattle farmers overwhelmingly voted to keep paying $1 per head to fund beef marketing efforts even if the U.S. Supreme Court strikes down a nationwide contribution.

In a referendum held last week, 82 percent of state beef producers voted to keep the mandatory fee for every cow sold. Results of the voting were announced yesterday.

"I just think it's a valuable tool to market our product," said Bobby Glass, a Mount Eden farmer who runs 115 head of cattle. "I don't think I can measure it dollar-wise, but I know the publicity we get ... is bound to influence the price I get."

Farmers pay the assessment to the Kentucky Cattlemen's Association, which retains 50 cents of every dollar and sends the rest to a national board for marketing, promotion and research. The cattle fee generates about $85million per year nationally.

State funds from the so-called checkoff program have been used to promote beef recipes at the Kentucky State Fair and launch a media blitz after a case of mad cow disease was discovered in the United States last year. The money cannot be spent on lobbying.

The U.S. Supreme Court is considering a challenge from South Dakota and Montana ranchers who argue that they are illegally forced to support the program.

Without the statewide vote, Kentucky's assessment would have dropped from $1 to 25 cents per head if the national program is dissolved.

In that case, state assessment money would be used solely for Kentucky beef promotion, said Dave Maples, executive vice president of the Kentucky Cattlemen's Association. Farmers could receive a refund of their checkoff contributions if they don't support how the money is spent.

Kentucky's beef council collected $1.6million in fiscal 2003-2004, down slightly from $1.8million the year before.

Demand for beef has made cattle one of Kentucky's leading farm commodities. Cattle sales brought farmers $544million last year, ranking No. 2 behind horses among total farm receipts.

"The beef industry in Kentucky is pretty important now — a lot of beef producers and a lot of cattle. This beef checkoff has done a lot of good things," Maples said.

Spencer County cattleman James Tipton said the program has helped increase demand for beef.

"I think it's absolutely a wise move to make for the cattle producers in the state of Kentucky," he said.

Springfield farmer Charles Wright Sr. said the checkoff works and he trusts the boards to spend the money on his behalf.

"I support it," he said. "I think it's a pretty good deal."

About 30 states have taken similar steps to prepare for the possible end to the national checkoff, said Diane Henderson, spokeswoman for the Cattlemen's Beef Promotion and Research Board in Colorado.

Farmers and commodity growers across the country are watching the beef case with interest because its result could affect other such programs.

In Kentucky, the state pork producers association has asked the Kentucky Department of Agriculture to hold a statewide vote similar to the beef referendum. Producers would decide whether to pay 40 cents on every $100 worth of swine sold if a national pork checkoff program ends.

Kentucky pork producers receive $100,000 in annual state checkoff money to fund education and extension activities, said Mike Ovesen, a LaRue County farmer and executive director of the pork association.

"We serve people," he said. "And our producers are very, very much in favor of this."
 
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