2000 News Archive
MONTANA CATTLE PRODUCER CHARGED WITH VIOLATING BEEF ACT
Denver, CO (September 26, 2000) -- The U.S. Department of Agriculture has charged a Montana cattle producer with violating assessment provisions of the Beef Promotion and Research Act and Order, according to Steve Barratt, director of collections and compliance for the Cattlemen's Beef Promotion and Research Board.
USDA alleges that Wallace McRae violated the Order by refusing to pay the $1-per-head beef checkoff, Barratt said. The $1 beef checkoff is due on all cattle sold in the U.S. and on all cattle and beef imported into the U.S. Funds collected finance a self-help industry program of promotion, research and information that is administered by the Cattlemen's Beef Board, which is an independent organization.
"Research shows that producers support the checkoff for many reasons, and one of those reasons is that it's fair: everyone pays," Barratt said. "Before the national checkoff started, a few cattlemen in certain states had to carry the load for all producers, each of whom benefited from their promotion and information efforts. Now all who benefit pay into the program."
USDA's complaint seeks an administrative order requiring McRae to pay all assessments and late payment charges due, to comply with the order in the future and to pay civil penalties for each violation (each transaction when cattle were sold but where no checkoff was remitted). Failure to comply with the Act and Order can result in fines up to $5,500 per violation.
"The Cattlemen's Beef Board, the Montana Beef Council and USDA were unsuccessful in repeated attempts to encourage Wallace McRae to voluntarily comply with the Act," Barratt said. "It would be unfair to the estimated 1.2 million other producers who pay the checkoff if USDA did not take this legal action."
The national beef checkoff was created in the mid 1980s to help build consumer demand for beef, and is administered by the Cattlemen’s Beef Promotion and Research Board. This 110-member board is appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, certify state beef councils, implement the provisions of the Federal Order establishing the checkoff and evaluate the effectiveness of checkoff programs.
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The 110-member Beef Board is appointed by the Secretary of Agriculture to oversee collection of the $1-per-head checkoff, certify state beef councils, implement provisions of the Federal Order establishing the checkoff and evaluate the effectiveness of checkoff-funded programs.