Why do dairy producers and importers pay the beef checkoff?

So even while many people think of dairy producers as milk producers only, they obviously play a critical role in the beef industry and the Beef Checkoff Program, too. Accordingly, they are well represented on the Cattlemen's Beef Board, where they help determine how beef checkoff dollars are invested and help coordinate issues management and other information efforts between the beef and dairy industries.

Efforts to promote veal consumption are a critical aspect of the Beef Checkoff Program, as well. Those promotions have direct impact on dairy producers because of the calves and dairy ingredients purchased, and they all help to support dairy prices.

"As dairy producers, we wear a variety of hats in the livestock industry," said John Roberts, a dairy producer from Vermont who sits on the Executive Committee of the Cattlemen's Beef Board. "We milk cows, supply calves to the veal industry, and sell cows and steers for beef, and it's important that we have a say in each of those segments of the beef industry. Our representation on the Beef Board and state beef councils allows us to do that."

In 2003, 16 dairy producers hold seats on the Beef Board, having been nominated by industry organizations in their states and then appointed by the U.S. Secretary of Agriculture.

Likewise, eight importers of beef and beef products to the U.S. currently sit on the Beef Board, where they represent issues of concern to their sector of the beef industry - to which they contributed more than $8.1 million in checkoff assessments in the fiscal year ended Sept. 30, 2003.

That stems from the fact that, in an independent survey of beef producers conducted before 79% of them voted in favor of the mandatory Beef Checkoff Program, U.S. beef producers overwhelmingly requested that the checkoff legislation require all producers - including importers - to pay the $1-per-head beef checkoff. That way, they said, nobody would get a "free ride" by benefiting from checkoff-funded programs without paying into them.

"Importers play an important role in the Beef Checkoff Program and beef industry, as we bring in products that are in high demand in the U.S. and are complementary to, rather than a replacement for, domestic product," said Laurie Bryant, an importer representative who also sits on the Beef Board's Executive Committee.

"We contribute a great deal to the checkoff program toward building demand for beef in the U.S.," Bryant said. "Our participation on the Beef Board allows us to help maintain a strong beef market for all producers and facilitates communication between the domestic and importer communities."

Gary Sharp and his family run a dairy and beef operation in South Dakota and participate actively in both the beef and dairy checkoff programs. Gary is a member of the Cattlemen's Beef Board and his wife, Donna, is a member of the Dairy Promotion and Research Board.

"The beef and dairy industries coordinate efforts in dealing with certain issues and in responding to media coverage that affects us both - such as E. coli and BSE," said Gary Sharp, who also sits on the Beef Board's Executive Committee.

"We discuss coordination of strategy, as well as tactics, in responding to issues of mutual concern, and keep each other closely informed. Communications to the media and to the public are stronger if the same message is coming from dairy and beef producers."

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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.