Editor’s Note:  Additional information about checkoff litigation, including a copy of the opinion, can be found on the home page of www.beefusa.org.

CONTACT:        Joe Schuele       303-850-3360    jschuele@beef.org

Sharyl Sauer      303-850-3359    ssauer@beef.org

Supreme Court Rules Beef Checkoff Constitutional

DENVER (May 23, 2005) – The U.S. Supreme Court today ruled that the Beef Checkoff Program is constitutional, thus allowing the program’s demand-building efforts to continue.  The decision overturns a ruling by the U.S. Court of Appeals for the Eighth Circuit that found the federal Beef Promotion and Research Act in violation of the First Amendment.  The checkoff has helped grow consumer demand for beef more than 25 percent since 1998 and has increased the prices that producers receive for their cattle.

“We are elated,” said Jim McAdams, an Adkins, Texas, cattleman and president of the National Cattlemen’s Beef Association (NCBA).  “Throughout the lengthy litigation process, we believed in the merits of our case and the merits of the beef checkoff.”  He said, “We anticipated a positive decision.  This is a victory for all producers who want demand-building efforts in beef safety, nutrition and promotion continued.”

Cattlemen have supported a checkoff assessment since 1922.  January 2005 independent research indicates that a significant 73 percent of beef producers support the current $1-per-head beef checkoff program.  Upon the Supreme Court’s acceptance of the beef checkoff case in May 2004, an overwhelming 113 state and national beef industry and general agriculture organizations signed a friend-of-the-court amicus brief in support of the beef checkoff.  The brief was also signed by attorneys general from 35 states and Puerto Rico and the chairmen of both the U.S. House and Senate Agriculture Committees.

Myron Williams, a Wall, S.D., cattleman and chairman of the Federation of State Beef Councils Division of NCBA said, “It’s clear that a majority of cattlemen and agricultural groups recognize that checkoff programs are good for local beef industries and economies.”  He said, “Cattle-Fax estimates that the beef demand gain in just the past seven years has added about $250 per head to the value of fed cattle and $200 per head to the value of calves.  Consumers are willing to pay more for the high-quality beef we are producing.”

The beef checkoff has stimulated the development of more than 2,100 new beef products since 1998.  Advertising tracking research indicates that the checkoff is improving consumer attitudes about beef’s nutritional value.  And, the checkoff’s  organized and proactive public response to a single case of BSE diagnosed in the U.S. has been credited with maintaining the high level of consumer confidence in the safety of U.S. beef.

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.”

“It is time now for industry groups to put aside their differences and move forward together,” concluded McAdams.

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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.