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| CHECKOFF TRAVELS LONG ROAD IN SEARCH OF BUILDING BEEF DEMAND Why is there a beef checkoff? How did it begin? How does it operate today? Press Release - For Immediate Release |
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| Celebrating its 20th anniversary in 2006, the national Beef Checkoff Program can count numerous successful projects that have helped build consumer demand for beef. Those projects were the result of deliberate planning and careful execution by the U.S. cattle industry. While the program started in 1986, the ideas behind it already existed. A voluntary checkoff had been in existence since 1922, through the National Live Stock and Meat Board. Individual state beef councils, which assessed cattlemen at varying rates, were a crucial part of that checkoff, just as they are now. But, as producers watched their industry face aggressive attacks by anti-meat forces through the 1970s, they were determined to create a larger, better-funded and more uniform self-help program that could counter anti-beef information and build demand for the product. They believed this program should work to benefit all U.S. cattle producers. Their long, hard work resulted in the passage of the Beef Promotion and Research Act of 1985. This legislation, which was made part of the 1985 Farm Bill, created the $1-per-head Beef Checkoff Program and established the framework under which the programs existing today are conducted. However, the road to success was bumpy. Two producer referendums failed to reach the required percentage of votes to pass. So, checkoff architects formulated a new plan, based on surveys of producers themselves on what they needed and wanted from a checkoff initiative. As a result, the checkoff founders devised a system that passed with a 79 percent 'yes' vote by producers; has consistently been supported by a majority of U.S. beef producers; has survived a Supreme Court challenge; and is respected by other commodity organizations across the country. Two Strikes The 'no' vote on the first producer referendum followed an industry attempt in 1973 to adopt a "value-added" checkoff of three- tenths of 1 percent of the value of each animal sold. Ten percent of collections, expected to earn $40 million a year for the first three years, would be retained by respective state beef councils. This "Keep Beef King" campaign had the support of 11 national beef and dairy organizations, 10 national breed associations, 22 state beef councils and some 40 state cattlemen's associations. The checkoff passed Congress and was signed by President Gerald Ford in 1976. However, despite widespread support, a 1977 referendum did not receive the two-thirds majority required for continuation. Another referendum was conducted in 1980, with the act revised slightly to reduce the assessment and voting requirements to a simple majority. While many beef and dairy organizations supported it, this effort did not pass. Cattlemen and cattlewomen went back to the drawing board and made significant changes to the legislation. Among these: state beef councils would retain 50 cents of every dollar- per- head for use at their discretion, and the checkoff also would be assessed on all cattle and beef imported into the country. All producers would pay the same amount. A referendum would be held 18 months after the act was implemented to give cattlemen an idea of what would be done with the money. The referendum, held in May of 1988, required a 50 percent 'yes' votes to pass. An overwhelming 79 percent approved the continuation of the checkoff. Independent surveys conducted twice a year since have shown producer support at 70 percent for the past three years. In its 20-year history, producer approval ratings have never dropped below 60 percent. The checkoff is administered by the Beef Promotion and Research Board on the behalf of U.S. producers and the United States Department of Agriculture. The Beef Board consists of 104 volunteer producer members who are appointed by, and serve at the discretion of, the U.S. Secretary of Agriculture. The Beef Board contracts, as it is required by the act to do, with qualified beef-industry organizations to implement its checkoff programs. All checkoff programs go through rigorous committee development and review and must be approved by the USDA prior to implementation. _________________________________ The beef checkoff 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. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen's Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval. |
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