Contact: Diane Henderson    303/850-3465   dhenderson@beef.org

FOR IMMEDIATE RELEASE

SUPREME COURT CONFIRMS CONSTITUTIONALITY OF BEEF CHECKOFF

CENTENNIAL, COLO. (May 23, 2005) – The U.S. Supreme Court affirmed the constitutionality of the Beef Promotion and Research Act by a 6-3 vote today, ruling against the legal challenge brought by the Livestock Marketing Association (LMA), the Western Organization of Resource Councils (WORC), and three individuals.

Defendants in the case included the USDA, the Cattlemen’s Beef Board, and Nebraska Cattlemen, leading a group of producers as interveners in the case.

“Obviously, we are thrilled with the High Court’s decision,” said Cattlemen’s Beef Board Chairman Al Svajgr. “The Beef Checkoff Program is constitutional.”

Congress and the U.S. Secretary of Agriculture set out the overarching message for the Beef Checkoff Program when it created the Beef Promotion and Research Act, the opinion notes in reviewing the “government speech” defense presented by the U.S. Department of Justice. In addition, the Secretary appoints half of the members of the Beef Promotion and Operating Committee, and all 20 members of that committee – which approves specific checkoff programs – are subject to removal by the Secretary. In short, it notes: “The message of the promotional campaigns is effectively controlled by the Federal Government itself.”

With that in mind, Justice Antonin Scalia wrote in delivering the opinion, the messages of the checkoff do constitute government speech and thus are not subject to the First Amendment challenges brought by the plaintiffs.

Svajgr, a producer from Cozad, Neb., said the ruling adds momentum to the board’s continued efforts to strengthen the position of beef in the marketplace through ongoing efforts such as the “Beef. It’s What’s for Dinner” campaign and to expand uses for beef and beef products.

“We believe this is a victory for all cattlemen in the U.S.,” Svajgr said. “Now it is more critical than ever that we come together as an industry to support the checkoff’s educational, research and promotional programs aimed at increasing demand for beef at America’s dining tables. We would call on the LMA and WORC to join us in these efforts, with an eye toward increasing long-term profitability for all segments of our industry.”

_____________

The Beef Checkoff Program 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. The checkoff assessment became mandatory when the program was approved by 79 percent of producers in a 1988 national referendum vote. Checkoff revenues may be used for promotion, education and research programs to improve the marketing climate for beef.

#     #    #