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Farm groups split over need for additional beef checkoff

 

By MATTHEW D. ERNST

Missouri Correspondent

 

WASHINGTON, D.C. — The comment period for a new proposed beef checkoff program ends Dec. 10 – and now the beef industry awaits a USDA decision on whether an additional checkoff will coexist with the long-running beef checkoff program.

The proposal, released for comment by USDA Secretary Tom Vilsack on Nov. 7, would create a program in addition to the existing $1 per-head beef checkoff. The proposed additional checkoff would run under the 1996 Generic Commodity Promotion Act. After three years, beef producers would affirm or reject the new checkoff through a referendum.

Opponents of the proposal said another checkoff program is unnecessary and would shift control of checkoff programs to USDA. "The Beef Checkoff Program is functioning well under the 1985 Act," said Missouri Cattlemen’s Assoc. President Jim McCann.

"The current program is producer-driven and producer-managed. Increasing government involvement in the beef checkoff is not something cattle producers welcome."

But Roger Johnson, National Farmers Union (NFU) president, affirmed Vilsack’s proposal. Johnson advocates a more comprehensive change than the USDA chief has proposed, calling for a new program that "would have a clear separation of the policy organization from the non-political, promotional checkoff entity patterned after other checkoffs."

His comments appeared on the NFU website and in a guest opinion column appearing on the Agri-Pulse website.

Johnson and other supporters of Vilsack’s proposal hold the 1985 program results in too much control of checkoff funds by the National Cattlemen’s Beef Assoc. (NCBA). Some groups, including the NFU and the U.S. Cattlemen’s Association (USCA), believe the NCBA is too closely tied to meat industry interests and farm policy lobbying to effectively administrate checkoff funds.

The NFU and USCA originally requested Vilsack write a new beef checkoff order under the 1996 law; however, Vilsack insisted that major beef industry groups attempt to work through divisive issues related to the checkoff.

Eleven groups – including the USCA, NFU and NCBA, as well as the American Farm Bureau Federation – started that discussion in 2011. Those discussions broke down earlier this year, failing to reach a consensus and prompting Vilsack’s latest move.

The USCA supports Vilsack’s effort. "The Secretary’s actions are needed and timely and USCA looks forward to engaging with USDA and members of our industry in rewriting a new beef checkoff order in a manner that addresses the needs and interests of all U.S. cattle producers," said Jon Wooster, USCA president.

Past statements by USCA have called for specific reforms to the checkoff. Those include periodic, scheduled referendums; no increase in the per-head assessment until substantial, recommended enhancements are made; and a complete separation of the Federation of State Beef Councils and any policy organizations.

Mike Deering, executive vice president of Missouri Cattlemen’s, said the 1985 act makes state beef councils a key component of the national checkoff. The organization issued a letter in which it "vehemently opposed" the USDA proposal.

"Weaving federal bureaucrats, red tape and runaround into the beef checkoff program is absolutely unacceptable," said Deering.

Checkoff effective

 

Although cattle groups are divided over who oversees checkoff spending, they agree checkoff dollars broadly benefit the industry. "Beef industry representatives agree that this important program needs more resources," according to Vilsack.

Harry Kaiser, a Cornell University agricultural economist, found beef checkoff programs returned an $11.20 benefit-cost ratio from 2006-13. That means each dollar invested in the Cattlemen’s Beef Promotion and Research Board brought back $11.20.

"The return on producers’ and importers investments into this program is vastly greater than the cost of the program," said Kaiser, whose study was commissioned by the Cattlemen’s Beef Board.

An Oct. 14 letter from the NCBA, signed also by 45 state groups, asked Vilsack to not issue an order for a supplemental checkoff. The NCBA issued a call for cattlemen to oppose the program with a "Don’t Hijack the Checkoff" campaign.

Statements from the NCBA insist the USDA is playing politics with the 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," said Bob McCan, NCBA president and a Texas cattleman.

Johnson has a different take on the NCBA opposition. "NCBA regards the checkoff as its own personal financial trough and will do everything possible to cement that status into eternity," he said. "Clearly, NCBA wants to protect its turf and its income stream, but its days of living off the checkoff slush fund need to come to an end."

12/10/2014