A
Anonymous
Guest
September 30, 2008 Phone: 406-672-8969; e-mail: [email protected]
Cattle Producers Back Tester’s Beef Checkoff Modernization Act
Billings, Mont. – Today in a news conference here, with strong support from R-CALF USA and other industry stakeholders, Sen. Jon Tester, D-Mont., introduced the Beef Checkoff Modernization Act (S. 3404), which not only will allow a portion of National Beef Checkoff Program (Checkoff) funds to be used to promote USA beef, but also will allow cattle producers to hold a referendum on the measure every seven years or sooner if they petition to do so. Additionally, organizations that did not exist prior to 1985 when the Checkoff was passed into law would now be allowed to bid on contracts to promote U.S. beef.
“Today’s marketplace is dysfunctional because U.S. producers are forced to pay to market and promote their competitors’ product,” explained R-CALF USA CEO Bill Bullard. “Currently, the Checkoff allows only the promotion of generic beef, which means all of the imported beef products get to ride the coattails of the U.S. farmer and rancher who’s footing the lion’s share of the bill for Checkoff promotional activity.
“Senator Tester’s legislation would correct that problem and allow a great portion of the money assessed upon independent U.S. cattle producers to promote, market and advertise USA beef to U.S. consumers, and that’s what we’ve wanted for a long, long time,” he continued. “We thank Senator Tester for the months of hard work he’s put into bringing this bill to fruition and we look forward to working with Congress to make certain these important changes to the Checkoff become law.”
The National Beef Checkoff Program was created in 1985. Currently, every single time a cow, calf or steer is sold in the United States, producers are assessed a $1 fee.
R-CALF USA member-established policy states that in an effort to enhance the Checkoff so that it better benefits cattle producers in the United States:
1) R-CALF USA will support no consideration of an increase in the $1.00 per head assessment until, and unless, all of the conditions and requirements of Checkoff Resolution No. 4, 2007, as approved by the membership by mail-in ballot are accomplished;
(Checkoff Resolution No. 4, 2007 requires:
1. Sec. 2904, paragraph (6) be modified to eliminate the requirement that the Operating Committee contract only with “established, national nonprofit industry-governed organizations.” This would allow the Committee to contract directly with vendors and avoid possible conflicts of interest generated by policy positions of any national organization.
2. Provide for a periodic referendum every five years.
3. Include language that would assure the proportion of representation on the Cattlemen’s Beef Board (CBB) and its attendant committees does not exceed 40 percent of producer-members who would represent any one national policy organization.
4. Direct Beef Checkoff dollars collected from U.S. cattle producers to be used to promote products from cattle that are specifically born, raised and processed in the United States.
5. Remove the requirement that contracting organizations must have been in existence prior to the implementation of the current Act and Order.
6. No person, organization, corporation, entity, nor any of their associates, subsidiaries, affiliates, etc., shall be awarded a contract or contracts in an amount or aggregate amount which would exceed 30 percent of the total amount available for contracts during any fiscal year.)
2) In addition, to help USDA formulate an effective and workable structure to conduct any future referendum, R-CALF USA proposes and supports the following procedures:
a) No one under 18 years of age shall be eligible to vote in any referendum.
b) All partners 18 years and older involved in enterprises that result in contributions of more than $10 be
eligible to vote. This shall include both spouses involved in a sole proprietorship venture.
c) Any operation responsible for the collection and remittance to the Qualified State Beef Councils of
more than $1,000 be qualified polling places to cast ballots. Such locations shall have the
responsibility to assemble ballots for totaling, bundling, and passing both ballots and totals on to the
USDA for final tallying;
d) Official ballots shall be sent by USDA by mail to all producers showing proof of payment of more than $20 per year. These ballots may be cast at any polling place including FSA offices, extension offices or other qualifying polling places as outlined in c).
3) Importers be considered a Qualified State Beef Council entitled to retain one half of their contributions for qualified purposes under the Act and Order.
4) Qualified State Beef Councils may advertise exclusively United States’ beef or may advertise generic beef if they so desire, but nothing herein shall be construed as prohibiting any QBC from advertising U.S. beef only.
5) The Act and Order shall be modified to allow Checkoff funds to be spent on projects and research to enhance raising of live cattle, including improving pastures, handling procedures or transportation methods.
Cattle Producers Back Tester’s Beef Checkoff Modernization Act
Billings, Mont. – Today in a news conference here, with strong support from R-CALF USA and other industry stakeholders, Sen. Jon Tester, D-Mont., introduced the Beef Checkoff Modernization Act (S. 3404), which not only will allow a portion of National Beef Checkoff Program (Checkoff) funds to be used to promote USA beef, but also will allow cattle producers to hold a referendum on the measure every seven years or sooner if they petition to do so. Additionally, organizations that did not exist prior to 1985 when the Checkoff was passed into law would now be allowed to bid on contracts to promote U.S. beef.
“Today’s marketplace is dysfunctional because U.S. producers are forced to pay to market and promote their competitors’ product,” explained R-CALF USA CEO Bill Bullard. “Currently, the Checkoff allows only the promotion of generic beef, which means all of the imported beef products get to ride the coattails of the U.S. farmer and rancher who’s footing the lion’s share of the bill for Checkoff promotional activity.
“Senator Tester’s legislation would correct that problem and allow a great portion of the money assessed upon independent U.S. cattle producers to promote, market and advertise USA beef to U.S. consumers, and that’s what we’ve wanted for a long, long time,” he continued. “We thank Senator Tester for the months of hard work he’s put into bringing this bill to fruition and we look forward to working with Congress to make certain these important changes to the Checkoff become law.”
The National Beef Checkoff Program was created in 1985. Currently, every single time a cow, calf or steer is sold in the United States, producers are assessed a $1 fee.
R-CALF USA member-established policy states that in an effort to enhance the Checkoff so that it better benefits cattle producers in the United States:
1) R-CALF USA will support no consideration of an increase in the $1.00 per head assessment until, and unless, all of the conditions and requirements of Checkoff Resolution No. 4, 2007, as approved by the membership by mail-in ballot are accomplished;
(Checkoff Resolution No. 4, 2007 requires:
1. Sec. 2904, paragraph (6) be modified to eliminate the requirement that the Operating Committee contract only with “established, national nonprofit industry-governed organizations.” This would allow the Committee to contract directly with vendors and avoid possible conflicts of interest generated by policy positions of any national organization.
2. Provide for a periodic referendum every five years.
3. Include language that would assure the proportion of representation on the Cattlemen’s Beef Board (CBB) and its attendant committees does not exceed 40 percent of producer-members who would represent any one national policy organization.
4. Direct Beef Checkoff dollars collected from U.S. cattle producers to be used to promote products from cattle that are specifically born, raised and processed in the United States.
5. Remove the requirement that contracting organizations must have been in existence prior to the implementation of the current Act and Order.
6. No person, organization, corporation, entity, nor any of their associates, subsidiaries, affiliates, etc., shall be awarded a contract or contracts in an amount or aggregate amount which would exceed 30 percent of the total amount available for contracts during any fiscal year.)
2) In addition, to help USDA formulate an effective and workable structure to conduct any future referendum, R-CALF USA proposes and supports the following procedures:
a) No one under 18 years of age shall be eligible to vote in any referendum.
b) All partners 18 years and older involved in enterprises that result in contributions of more than $10 be
eligible to vote. This shall include both spouses involved in a sole proprietorship venture.
c) Any operation responsible for the collection and remittance to the Qualified State Beef Councils of
more than $1,000 be qualified polling places to cast ballots. Such locations shall have the
responsibility to assemble ballots for totaling, bundling, and passing both ballots and totals on to the
USDA for final tallying;
d) Official ballots shall be sent by USDA by mail to all producers showing proof of payment of more than $20 per year. These ballots may be cast at any polling place including FSA offices, extension offices or other qualifying polling places as outlined in c).
3) Importers be considered a Qualified State Beef Council entitled to retain one half of their contributions for qualified purposes under the Act and Order.
4) Qualified State Beef Councils may advertise exclusively United States’ beef or may advertise generic beef if they so desire, but nothing herein shall be construed as prohibiting any QBC from advertising U.S. beef only.
5) The Act and Order shall be modified to allow Checkoff funds to be spent on projects and research to enhance raising of live cattle, including improving pastures, handling procedures or transportation methods.