Checkoff Panel Proposals Face NCBA Policy Process

The Beef Checkoff Program has been widely recognized for its effectiveness in helping drive beef demand. Through successful consumer advertising, new product development, beef safety, nutrition research and other award-winning programs, the beef checkoff has contributed in a very positive way to the bottom line of cattle producers.

But no matter how effectively a program is operated, industry conditions and circumstances can change over time —especially over 20+ years. Led by some NCBA state affiliates, cattlemen recently called for a fresh look at the checkoff, hoping to find ways to improve the program.

An Industry-wide Beef Checkoff Task Force was formed to examine a wide range of ideas for enhancing the checkoff, and it recently issued a set of recommendations. NCBA membership will determine the association’s position on each of these recommendations.

Illinois cattleman and NCBA member Jamie Willrett co-chaired the Task Force, which approved a set of four major revisions to the Beef Checkoff Program. The most notable of these is a proposed increase in the per-head assessment from $1 to $2, subject to industry approval by a vote of cattle producers.

“The proposal to increase the checkoff was made after due consideration. We examined the impact of inflation, the stiff competition we face from other proteins, the stepped-up marketing efforts of our global competitors, and other factors,” said Willrett. “But it’s not my job to say whether or not NCBA will support the increase. Only NCBA’s full membership can do that.”

NCBA President Mike John agreed, assuring cattlemen that the Task Force recommendations are just the first step in a lengthy process.

“NCBA appreciates the expertise and hard work of the Task Force participants,” John said. “But now the Task Force’s recommendations are in the hands of the cattle producers who make up the participating organizations. In NCBA’s case, we have a member-driven process in which we will take up each proposal at the Cattle Industry Annual Convention in February.”

John added that NCBA members not attending the convention also will have the opportunity to vote on the policy by mail-in ballot. He emphasized that all NCBA policies begin and end with the membership, and the Checkoff Task Force recommendations are no exception.

“Any member who supports or opposes an increase in the checkoff can bring a resolution forward — either at convention, or at the state or local affiliate level,” John said. “Some organizations create policy from the top down, just to gain attention and publicity. I can’t tell you what NCBA policy will be in the end, because our members will make that call. What I can tell you is that once our members set the policy, our goal will be to achieve the best possible results for cattlemen.”

Willrett emphasized that while the proposal to increase the checkoff has generated the most controversy and discussion, each of the Task Force recommendations are important to the future of the Beef Checkoff Program and the cattle industry.

“The Task Force examined a lot more issues than just the assessment rate,” Willrett said. “We evaluated a great deal of information about the checkoff program’s processes, its effectiveness, and how our industry and its business climate have changed over time.”

In addition to the proposed increase in the checkoff rate, the Task Force also issued the following recommendations:

1) Simplify the referendum petition process.  The beef checkoff referendum process would be revised to provide producers the opportunity to petition every five years for a referendum on continuing the checkoff.  Ten percent of beef producers signing the petition at county offices would trigger the USDA to conduct a vote within a year.  This is similar to the soybean checkoff referendum model.

2) Make the checkoff more inclusive.  Any reference to the charter date of established national non-profit, industry governed organizations would be eliminated from the Beef Promotion and Research Act. This would allow a broader range of organizations to submit proposals to manage checkoff-funded programs.

3) Enhance understanding of the Federation of State Beef Councils.  The Federation of State Beef Councils would give priority to enhancing its identity in order to strengthen beef industry stakeholders’ understanding of the Federation.

Changing the referendum petition process and expanding the organizations eligible to manage programs would require statutory changes approved by Congress, as would any proposal to increase the checkoff assessment rate.  John says Congress is unlikely to take action on any steps that don’t command a strong consensus among cattlemen.

“I think some people are attempting to paint the Task Force recommendations as the final word, but this is just the first of many important steps,” John said. “There will be a full and open debate of these issues before they ever reach Capitol Hill, and I’m certain we’ll need a strong consensus before Congress is willing to take any action on them. So I encourage all cattlemen to get the facts.”