September 8, 2006

Statement from the National Cattlemen’s Beef Association

Regarding Recommendations from the Industry-Wide Beef Checkoff Task Force

Mike John, cattle producer, Huntsville, Mo., and NCBA President

“The Industry-Wide Beef Checkoff Task Force completed its work this week and has offered the industry four recommendations to enhance the current Beef Checkoff Program.  The four recommendations, from today’s Task Force press release, appear below.

“The National Cattlemen’s Beef Association (NCBA) and the American Farm Bureau Federation co-chaired this Task Force, which included representatives from National Milk Producers Federation, National Farmers Union, American Meat Institute, R-CALF USA, National Livestock Producers Association, American Veal Association, Livestock Marketing Council, National Meat Association, Livestock Marketing Association, Meat Importers Council of America and cattle producers chosen by a number of state farm bureaus or cattlemen’s associations: Kansas, California, Montana, Kentucky, Texas and Tennessee.

“The Task Force was an idea started at the grassroots level by some state cattlemen associations.  At their direction, NCBA initiated this industry-wide review because we believed it was important to provide a forum for all national organizations involved in the industry to discuss and develop recommendations to strengthen the promotion, education and research engine of the beef industry.

“Above all else, NCBA remained committed throughout the Task Force’s evaluation that any enhancement to the Beef Checkoff Program must do these things: preserve or improve producer control through their State Beef Councils and continue to provide an outlet to build and protect beef demand.  We believe the Task Force’s recommendations maintain this level of integrity.

“The Task Force’s recommendations will be considered by NCBA’s Board of Directors and membership at our annual meeting at the end of January.”  

From the Industry-Wide Beef Checkoff Task Force:

“The recommendations are:

An opportunity to petition for a referendum.  The beef referendum process be revised to provide producers the opportunity to petition every five years for a referendum on continuing the Checkoff.  Ten percent of beef producers signing the petition at county offices will trigger the USDA to conduct a vote within a year.  This is similar to the Soybean referendum model. 

An adjustment of the checkoff rate.  To assure strong demand-building initiatives for the beef industry in the future and to offset twenty years of inflation, adjust the per head checkoff rate to $2.00.  The 50-50 split between State Beef Councils and Beef Board would remain the same.  The industry will need to approve any checkoff rate change through a referendum.

Enhanced understanding of the Federation of State Beef Councils.  The Federation of State Beef Councils gives priority to enhancing its identity in order to strengthen beef industry stakeholder understanding of the Federation.  Options such as changing its name from The Federation Division to The Beef Checkoff Federation could be considered.

Making the checkoff more inclusive.  Any reference to the charter date of established national non-profit industry governed organizations be eliminated from definition (1260.113c) in the Beef Promotion and Research Order.  This will make the checkoff program more inclusive.

The four recommendations were passed by at least a super-majority (two-thirds) of the Task Force. Not all were supported unanimously.”
 

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The National Cattlemen’s Beef Association (NCBA) is the largest organization representing America’s cattle industry.  Initiated in 1898, NCBA is the industry leader in education, influencing public policy to improve producer profitability and in preserving the industry’s heritage and future.  Efforts are made possible through membership contributions. To join, contact NCBA at 1-866-BEEF-USA or membership@beef.org.