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Beef checkoff reform elusive; Vilsack may start up another

 

By STEVE BINDER

Illinois Correspondent

 

WASHINGTON, D.C. — A group of cattlemen, producers and beef interests that have been working to reform the beef checkoff system have temporarily raised the white flag, saying they don’t believe a consensus will be reached soon.

In the absence of an agreement within the 11-member working group – which includes the National Cattlemen’s Beef Board, the National Cattlemen’s Beef Assoc. (NCBA), the American Farm Bureau and others – USDA Secretary Tom Vilsack is leaning toward the startup of a second beef checkoff in part as a way to raise additional funds to support beef programs. Last month, the National Farmers Union (NFU) board voted to leave the working group because the NFU believed a mutually agreeable plan to reform the existing checkoff program wouldn’t be reached. The working group began discussions in 2011.

At the time, NFU President Roger Johnson said the group’s discussion had "become a bridge to nowhere and a waste of time and resources. NFU remains willing and eager to engage with others who are interested in reforming the beef checkoff, such that it operates in a manner like other checkoff programs."

In response to the withdrawal and separate calls for a second beef checkoff to be established, Vilsack called the groups together earlier this month and said he will consider using his authority as ag secretary to implement another checkoff for the industry.

Some members of the checkoff board believe more money is needed to help promote the industry, and initially calls were made in recent years to increase the existing checkoff amount from $1 per head sold to $2.

With the working group stalemate, though, a second checkoff that would raise more money for the cattle industry for research and promotion and address concerns some have about how the money is allocated may be the best solution for now, Vilsack explained.

"For three years, the industry has identified the need for more marketing, more promotion, and it comes at a critical time in the industry," he said, noting he recognizes that some groups believe a second checkoff is unnecessary. "I’m trying to help the industry."

The existing checkoff, established by the Beef Research and Information Act of 1985, has raised about $75 million-$80 million each year.

The money is divided among member groups, and cannot be used for political lobbying. A plurality of the funds, about $35 million, goes to the NCBA, said CEO Forrest Roberts. All totaled, the checkoff has raised approximately $1.6 billion since it started.

The NCBA also opposed a second checkoff, saying such a move is unnecessary. In a letter to Vilsack sent last week, NCBA President Bob McCan said 45 state associations join the NCBA in opposing a second checkoff.

"We are focused on how the beef checkoff can do more to support cattlemen and women; the administration has focused on how they can use the beef checkoff for political spoils and to increase the control of the federal government," McCan said in a statement.

Vilsack said a second checkoff isn’t an approach he favors, but added it could be after other successful programs in the checkoff commodity area. It could be developed over the next year and become effective as soon as 2016. The new checkoff and the current checkoff would both exist for three years before a producer referendum would take place to determine whether to continue with both.

10/22/2014