Supreme Court to Hear Beef Checkoff Case

DENVER (May 24, 2004) – The U.S. Supreme Court today released its decision to hear an appeal of an 8^th Circuit Appellate Court ruling that found the federal Beef Promotion and Research Act in violation of the First Amendment.  The decision to hear the case will allow the beef checkoff program to continue business as usual throughout the proceedings.  The checkoff has helped grow consumer demand for beef more than 16 percent since 1998 and has increased the prices that producers receive for their cattle.

“This decision was expected,” said Bob Rolston, an Englewood, Colo., cattleman and chairman of the Federation of State Beef Councils Division of the National Cattlemen’s Beef Association (NCBA).  “Throughout the lengthy litigation process, we anticipated that the decision would ultimately be made by the U.S. Supreme Court.  What’s more, we believe in the merits of the beef checkoff and are confident that it eventually will prevail.”

The final Supreme Court ruling is expected in the first half of 2005.

Cattlemen have supported a checkoff assessment since 1922.  Recent producer market research conducted by an independent firm indicates that nearly 70 percent of beef producers support the current $1-per-head beef checkoff program. National industry organizations, along with intervening groups, are using all legal options to preserve the federal checkoff.

Myron Williams, a Wall, S.D., cattleman and vice chairman of the Federation added, “Thanks to the checkoff’s organized and proactive public response, confidence in U.S. beef remains high – in line with pre-BSE levels – despite the challenge a single case of BSE presented. Cattlemen recognize the valuable role the beef checkoff plays in defending the industry from food safety and nutrition challenges.” 

Williams continued, “State beef councils and their Federation – a division of NCBA – are committed to protecting the brand equity built in the “Beef. It’s What’s For Dinner.^®” campaign.  Therefore, we are taking all steps to ensure program continuation.”

Thirty state attorneys general, along with Puerto Rico, asked the Supreme Court to hear the case and 48 industry organizations signed a brief supporting the Supreme Court’s review. 

“Many groups recognize that checkoff programs enhance local beef industries and economies,” said Rolston.  “They recognize that the beef checkoff has played a key role in the dramatic increase in beef demand.”

The legal challenge to the beef checkoff’s constitutionality was raised by the Livestock Marketing Association (LMA), the Western Organization of Resource Councils (WORC) and a few individual producers.

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Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.