New Prepayment Checkoff Option

Cattle producers now can prepay beef checkoff assessments in their state of residence before sending cattle across state lines.  In early October USDA finalized an amendment to the Beef Promotion and Research Rules and Regulations allowing this.

            The amendment offers a voluntary option for producers who retain ownership of cattle that are shipped to another state — for feeding, grazing or the like — for more than 30 days before being sold. The rule change offers producers the option of directing the state share of their checkoff assessments to the Qualified State Beef Council in their home state rather than in the state where they send their cattle for sale.

This new rule allows producers to extend that retained ownership indefinitely if they choose — as long as they remit prepayment of their $1-per-head checkoff assessments before or at the time of transport of their cattle to another state.

The amendment maps out a specific process and paper trail for producers to follow if they choose to trigger the prepayment option; it requires use of new USDA-approved forms that are available from Qualified State Beef Councils. The amendment provides for a verification process to ensure compliance with payment of all checkoff assessments and application of those assessments to the appropriate state beef council or to the Cattlemen’s Beef Promotion and Research Board.