SUPREME COURT AGREES TO HEAR BEEF CASE

CENTENNIAL, COLO. (May 25, 2004) – The U.S. Supreme Court will review the lawsuit challenging the constitutionality of the Beef Checkoff Program.

The high court announced Monday that it has agreed to accept the U.S. Department of Justice request for certiorari, filed on behalf of USDA and the Cattlemen’s Beef Board, asking the Supreme Court to review lower-court decisions in the case and make its own ruling regarding constitutionality of the checkoff program.

With acceptance of the Department of Justice request, the case is expected to be scheduled for Supreme Court review during its next full session, which begins in October 2004. That means that the court could render a decision in the case anytime between October 2004 and the close of that session in June 2005.

In the meantime, the Beef Checkoff Program will remain in place. Producers are required to continue paying the $1-per-head checkoff each time a bovine animal is sold.

“During the ongoing appeal process at the Supreme Court, the Beef Board will continue – as it has throughout the course of this litigation – to work to strengthen the position of beef in the marketplace and expand uses for beef and beef products,” said Beef Board Chairman and Kentucky cattleman Nelson Curry. “Demand for our product continues on a strong upward trend, and we continue to develop programs aimed at maintaining that growth long-term.”

The legal challenge under consideration was brought by the Livestock Marketing Association (LMA), the Western Organization of Resource Councils (WORC), and three individuals in an earlier petition. Defendants in the case include the USDA, the Cattlemen’s Beef Promotion and Research Board, as well as the Nebraska Cattlemen, leading a group of producers as interveners in the case.

At the same time this case is unfolding, the Court of Appeals for the Ninth Circuit has been asked to consider an opposing ruling – declaring the Beef Checkoff Program constitutional. U.S. District Judge Richard Cebull of Montana issued that ruling in favor of the checkoff in November 2002 – based on the exact same trial transcript as the LMA case but reaching a different conclusion.