Update on NCBA's $2 Million Checkoff Cash Advance...

[Tommy]

Update on NCBA's $2 Million Checkoff Cash Advance...
beefcheckoff | July 28, 2011 at 7:50 pm | Categories: Uncategorized | URL: http://wp.me/p1BxtA-31


On August 28, 2009 the Cattlemen's Beef Board agreed to advance its primary contractor $2 million in checkoff funds (available in the CBB Annual Report). The June 16, 2011 CBB Executive Committee meeting minutes (available on the Beef Board web site) show that NCBA STILL OWES $1 million of that advance from checkoff coffers. The CBB Executive Committee has directed staff to "refine" the repayment process.
The minutes also show that NCBA has asked to receive payment from the checkoff for vendors PRIOR to NCBA's payment of those vendors.

Here's the Financial Report section of the June 16 minutes:
Financial Report
Weldon Wynn, CBB secretary/treasurer, presented the Beef Board’s financial statements for the period ending May 2011. Mr. Wynn reported that domestic revenue and interest income was up from the same period last year and import revenues were down from this same time last year.

CFO Katherine Ayers updated the committee on the repayment of the $2 million advance on expenditures made to NCBA. Ms. Ayers reported that $1 million has been repaid, and staff is currently working on a plan for the repayment of the other $1 million. Ms. Ayers also reported that NCBA and CBB staff are working together on a process to modify the invoice review and approval process, whereby NCBA would request payment from CBB for agreed-upon vendors prior to NCBA’s payment of those vendors and NCBA would submit a monthly bill for estimated implementation expenses. CBB would true-up the estimated implementation expenses within an agreed-upon timeframe.

The Executive Committee directed staff to continue to work on refining the repayment process.
Ms. Ayers also presented an amendment to the FY 2011 detailed administration budget to the Executive Committee.

Dan Dierschke moved and Jane Clifford seconded to approve the amended FY 2011 detailed administration budget. Motion passed.

[Tex]

[Oldtimer]

[Tommy]

Can anyone give me a good reason why there is a need for the Federation of State Beef Councils other than just to empower the NCBA?
I have asked MJ this question many times and she ducks it.
The CBB has over 100 board members, if they cannot delegate where the money is to be spent then there's something wrong.

Both the Federation and the Cattlemen’s Beef Board (CBB) elect 10 members from their respective organizations to sit on the Beef Promotion Operating Committee (BPOC). This 20-member committee makes final national checkoff decisions.
The Federation is made up of mostly, if not all, NCBA people. If the CBB is made up with only 50% NCBA people, which I know it is more than half, that gives NCBA control of where and how the checkoff tax dollars are spent.
Maybe it is time to change the way this is structured. I know of only one way to do that.

[Gatepost]

Tommy, it will help you understand the system a whole lot better if you read both the Beef Act and the Order. You can find them on the web through a Google search. The two documents outline the roles of the various entities involved.

Many of the things that need to be changed and updated with the checkoff can be handled through changing the Order, which doesn't require congressional action. Changing the Act itself would require Congress to act. Many of the problems at hand can be managed with simple changes to the Order.

For example, seats on checkoff committees should be allocated to all national groups in existence...not just one. What's wrong with making it all-inclusive rather than exclusionary? Checkoff project contracts should be available to all established national groups...not just those in existence when the Act was passed. Overhead or implementation fees should be capped at a certain percentage level so that the program demands efficiencies from contractors rather than an open checkbook.

Ever wonder why we don't see beef advertised on television anymore? Think about that and what might be the reason.

[mrj]

TV advertising is extremely costly. Consumers Checkoff leaders have interviewd read magazines, and have said they like the advertising which contains information about beef quality, safety, and more. Specific magazines read by women in the 18 to 54 age groups are targeted for beef ads. THose ages of women just happen to make the most decisions about what meats are purchased for home use.

There is a lot of advertising done by the more than 50 companies selling branded beef, too, which does not use checkoff money.

Special promotions team up checkoff dollars with companies to leverage checkoff money to achieve more than it could on its own.

Gatepost, you may be ill-informed about who chooses Federation directors. In SD, and probably other states as well, the state beef councils choose their members. They can be members of any cattle organization or of NCBA, but automatically become members OF THE FEDERATION DIVISION of NCBA, which in reality is the STATE Federation of Beef Councils. Members of the Cattlemens' Beef Board (CBB) are from ALL cattle organizations, even those causing the fuss, with their lies some of you seem to believe all too easily. There are even directors who are NOT necessarily members of ANY cattle organization, but are members of LMA in SD who have seats on the SD Beef Council, and also on CBB and possibly the Federation.

It does seem odd that members of LMA, which is not a cattle producer group whose members sell their services to cattle producers are able to have seats on state and national governing boards of the Beef Checkoff. It would be just as logical to have our fuel dealers, feed dealer, bankers assoc., or veterinarians org. demanding seats and telling us how to manage our beef checkoff. None of these groups pay the checkoff. Sure, many auction owners do own cattle, so may pay a checkoff, but so do members of the other groups mentioned. It does give R-CALF more leverage on state Beef Councils, though. What a coincidence!

mrj



The Federation votes on checkoff issues. The policy members vote on POLICY ISSUES ONLY! The money is SEPARATE. Checkoff money does NOT fund Policy issues. This is verifiable for anyone who chooses to find out. Staff may serve both groups, however they account for their time in 15 minute increments according to the project, so checkoff money pays for checkoff time, and dues paying members money pays for policy time.

[ranch hand]

[ranch hand]

MRJ...can you answer my ? when you get time. Thanks

[mrj]

ranch hand, sorry that took so long. I wanted to be sure I got them all, so contacted CBB office. The list is much longer than I realized. I got the entire advertising set up in current use.

Beef checkoff ads in magazines: FOOD MAGAZINES: Bon Appetit, Cooking Light, Dash, Fine Cooking, Food Network, Kraft Food and Family, Saveur, Wine Spectator; HEALTH AND FITNESS: Health, Mens' Health, Shape, Mens' Sports, Esquire, ESPN, Mens' Journal, Popular Mechanics, Sports Illustrated, Sporting News; WOMENS INTEREST: Better Homes & Gardens, Country Living, Family Circle, Red Book, Southern Living; ENTERTAINMENT: People Country; PARENTING: Family Fun; SPECIAL INTEREST PUBLICATIONS: Better Homes & Gardens 'GRILL IT' Bookzine, Gourmet SIP, Fine Cooking Picnic & Barbeque, Fine Cooking Make It Tonght, Cooking Light, Mens' Health, Food Network Magazine (8 page inset, Grilling)

Radio: a mix of National Syndicated Network Radio ads, Satellite radio ads, Spot Market radio ads. Programming includes everything from Martha Stewart Living radio show, to Major League baseball, Sirius Nascar radio, and features on 7500 stations across the nation.

The 'voice' of the ads on radio has quantitative data showing awareness of 'the voice' for the ads is very strong across every demographic (age, incom levels, household composition) and 94% of consumers who are aware of him find him appealing and likeable, an unusually high score for a celebrity. {I did hear one of those ads this morning, and agree that the radio voice is fine, but do not know if he is a recognized (therefore costly!) celebrity or not}.

ONLINE: Recipe and Lifestyle focused sites such as: www.allrecipes.com, www.BetterHomesandGardens.com and more are used.

Placements are based on market research and strategic outreach coordinated from local to national level. Key audiences are identified, reached, and verified, as is the effectiveness of the messages sent to them via the ads.

Beef Checkoff funded ads will appear in 27 popular magazines 77 times in 2011.

I have to say, I heard the current SD Beef Council radio ad this morning and am not sure it is much more than a 'feel good' ad. It basically repeats the "Beef, It's What's For Dinner" slogan several times and "Beef, it's the good stuff", but no mention of nutrition or calorie benefits of beef, which is what we NEED to counter the misinformation about beef. The sounds of the sirloin sizzling may be appealing, but a photo is far more enticing for most people. I hope there is implementation of a means to chart any change in consumption of beef in SD for the great cost of this project in a state with so few people and so many cattle. Our advertising money would be far better spent in more populous states, IMO.

Sorry for the information overload, but it is important for cattle producers to know what the checkoff money really does, and how the projects are so well designed, researched, with follow-up done to see how effective CONSUMERS believe the ads are for their needs.

And I'm serving our cowboys chicken tomorrow when they work cattle!

I need a cold meal, and, at the moment, have no beef that will work, and several great chickens from Millerdale Colony in my freezer, so fried up four of them yesterday, then froze it again, and it will be just right at noon tomorrow after I haul the meal 26 miles to the 'last outpost' on the ranch. Now, off to make the potato salad and maybe a Pina Colada salad, and will ONLY have to cut up the watermelon, make the iced tea, open the can of baked beans, and load the food in the morning.

I think I'm getting too old for all that. But am getting wiser and doing it earlier. Thank God for freezers! And ice at the store when I need more than a few trays!


mrj

[Oldtimer]

[mrj]

Well, OT, if you enjoy FB so much, it sure must be boring here!

Guess I'm just a boring person, but have no idea who McC. is, nor what his claim to fame is, but if the consumers who approved the ad (age range 18 to 54 and is the person making food choices for their household) , isn't it a good thing to 'give consumers what they want'? I believe the 'voice' was chosen for clarity, ennunciation, and other qualities that make actually hearing the message of the commercial more likely.

mrj

[Oldtimer]