NCBA Told to Take a Hike

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Beef Checkoff declares independence


By Alan Guebert / Columnist | Posted: Saturday, June 26, 2010 10:30 pm

In a toughly worded statement last week, the executive committee of the Cattlemen's Beef Board, the group created by Congress to collect and oversee the $1-per-head beef checkoff, served notice that it strongly backed the independence of the Federation of State Beef Councils in the debate over the checkoff's future.

"The Federation," noted the CBB "should be separate from any policy organization... The checkoff is owned by, and responsible to, all producers and importers, and no specific organization."

The declaration of independence was aimed directly at the National Cattlemen's Beef Association. For almost two years NCBA has been designing and debating a massive "governance" plan to pull state beef councils under its meatpacker-dominated umbrella.

Several state councils, who, by law, control 50 percent of all checkoff funds (the Cattlemen's Beef Board controls the other half), view the plan as little more than a NCBA grab for a chunk of the $80 million or so per year checkoff.

NCBA, however, says reorganization is necessary so the "industry" can move forward, as its CEO Forrest Roberts explained in a January, with "one vision, one plan, one budget and one voice."

All this oneness has one big problem, though: Almost no one outside of NCBA-and that's nearly everyone because 32 out every 33 checkoff-paying producers choose not to be NCBA members-want anything to do with it and its Big Meat buddies.

Worse, the governance plan hopes to fold one-half of the non-political checkoff, the state councils, into the almost purely political NCBA.

As such, the biggest naysayer is Secretary of Agriculture Tom Vilsack, the final word on all federally-chartered checkoffs like the beef program.

In a mid-May letter to NCBA President Steve Foglesong, Vilsack observed that NCBA's "reorganization would weaken the firewall between policy and checkoff funded activities." The move, the Secretary noted, was in direct opposition to other checkoff groups who were building "a stronger firewall between" checkoffs and political players.

Vilsack went on to list seven elements NCBA needed to incorporate into any governance restructuring if it was to get USDA's seal of approval for the change.

After that clear admonition, says one state beef rep, NCBA leaders went "back to Denver and did little more than shuffle the deck;" made few elemental changes to it plans to address the Secretary's concerns.

"NCBA just doesn't get it," the state beef rep said. "The federation represents one-half of all checkoff dollars and 30 times more cattlemen than NCBA. We have said repeatedly that we want more independence of NCBA, not less. So what's NCBA's big plan? It gives us less. Unbelievable."

Proof of NCBA's tin ear-and the packer lard that greases its policy positions-came June 18 after Vilsack proposed new rules to make it easier and less costly for livestock and poultry growers to challenge meatpacker and packer-integrator market power.

The announcement was loudly hailed as bold and innovative by ag groups as politically polar as the American Farm Bureau Federation and the National Farmers Union.


The one major commodity group to oppose the proposed rules? Yep, NCBA.

Its major objection, noted by Prez Foglesong later that day, would make a Wall Street banker blush. The proposed rules were unneeded "efforts to increase government intrusion in the marketplace."

Golly, this must be part of that "one vision, one plan, one budget, one voice" thing because only one person out of 100 would call more oversight in today's livestock and poultry markets "government intrusion."

Little wonder 32 out 33 cowboys choose not to join NCBA. It clearly doesn't represent working cattlemen and, as such, it clearly should have a smaller-not larger-role in the checkoff that 33 out of 33 pay.

Alan Guebert is a freelance agricultural journalist. He can be reached at [email protected] or at agcomm, 21673 Lago Drive, Delavan, IL 61734.
 
Thank you for the information. There is clearly a NEED for some government effort to keep cattle markets open and competitive.

Jim
 
I like the idea of the checkoff dollars being spent to better the industry. I do believe that those dollars should not be given to a group with an agenda whether it is my side of the fence or my political opponants. They must have been listening to me.
 
R-CALF United Stockgrowers of America


"Fighting for the U.S. Cattle Producer"

For Immediate Release Contact: R-CALF USA Communications Coordinator Shae Dodson-Chambers
July 6, 2010 Phone: 406-672-8969; [email protected]


Group Supports CBB Executive Committee

in Vote of Total Separation from NCBA




Billings, Mont. – R-CALF USA has signed on to a joint letter with nine other groups in support of the recent vote by the Cattlemen's Beef Board (CBB) executive committee to keep the Federation of State Beef Councils separate from any policy organization, specifically the National Cattlemen's Beef Association (NCBA).



"We support any action by USDA (U.S. Dept. of Agriculture) that would lead to the separation of NCBA from the Federation of State Beef Councils (Federation)…
We believe this recent move by this (CBB) executive board may very well be a deciding factor in the survival of the Beef Checkoff and ultimately the profitability and viability of these producers," the joint letter states in part.



Cattle producers pay $1 per each head of cattle they sell into the National Beef Checkoff Program. In most state programs, 50 percent of that dollar goes to the state beef council where the producer lives and the other 50 percent goes to the CBB, which is then contracted out to various entities for the marketing of and promotion of beef. NCBA is the largest contractor organization. The various state beef councils make up the Federation.



"According to the Beef Promotion and Research Order of 1985 Section 1260.112 the Federation of State Beef Councils was implemented by, and transitioned to, NCBA as a successor organization to the Beef Industry Council of the National Livestock & Meat Board, the joint letter also states. "This then would affirm that there is no policy firewall between the policy side of NCBA and the State Beef Councils. Therefore since the Federation is actually under the rule of a policy organization (NCBA) all indications are that it is in violation of the Beef Promotion and Research Act, Section 2904 (10). In turn our State Beef Councils do not have a nonpartisan independent voice with which to voice producer concerns to the (CBB) Operating Committee."



"More than 97 percent of cattle producers belong to organizations not affiliated with NCBA, and of that amount, about 72 percent are exclusively represented only by their state beef councils and the Federation, so that means that 72 percent of the cattle producers in the country would not have an equal voice in the governance of their Checkoff program if the Federation continues under the dominance of NCBA," said R-CALF USA Region XII Director Joel Gill, who also chairs the group's checkoff committee.



"We support the Checkoff and the prospects of it, but we expect some changes so our members have solid representation that they know will benefit the actual producers out there who are paying the Checkoff," said R-CALF USA President/Region VI Director Max Thornsberry. "It's not 1988 any more. There's got to be some changes. We have some differences with NCBA, and we don't want NCBA to be the CBB's and the Federation's only source of information. If genuine producers aren't allowed to participate in the process, you will continue to see opposition to any increase in their Checkoff assessment."



# # #



R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, non-profit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA directors and committee chairs are extremely active unpaid volunteers. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516.
 

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