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South Dakota Brand Board just stepped in it....

Liberty Belle

Well-known member
Joined
Feb 10, 2005
Messages
1,818
Location
northwestern South Dakota
Wanna see somethin' funny? The SD Brand Board just took over the brand inspection program in South Dakota and talk about a train wreck, this is going to be something to watch!

I posted this on Ranch Talk, but since this seriously impacts every rancher and livestock producer in western South Dakota, I'm going to post it here too. Click on the link at the end of the story to read what ranchers think of this studid idea!

Brand board takes over inspection contract from Stockgrowers
By Steve Miller, Journal staff Monday, June 02, 2008


The South Dakota Brand Board voted Monday to take over the brand inspection program from the South Dakota Stockgrowers Association, ending the Stockgrowers' more than 100 years of operating the program.

The brand board, meeting via conference call, voted to reject the last two proposals submitted last Friday by the Stockgrowers Association for a new agreement to replace the current contract, which expires June 30.

A major sticking point in negotiations between the two entities was the amount of profit to be allowed for administering the program.

Under the current contract, the Stockgrowers Association receives 8 percent of the total fees collected when horses and cattle are sold or otherwise leave the brand inspection area (22 counties west of the Missouri River). The current fee is 80 cents a head, and approximately 1.4 million cattle and horses are sold each year. Under the current contract, the brand board pays expenses of the program.

The brand board last Wednesday rejected a Stockgrowers proposal for a 6 percent fee.

On Friday, the Stockgrowers submitted another proposal for 6 percent, but agreed to other procedural demands by the brand board, according to Stockgrowers President Larry Nelson of Buffalo. In the second proposal, the Stockgrowers offered to pay all expenses of the program but keep the 80-cent-a-head fee, much like it had done for decades, Nelson said.

Some of the brand board members felt the brand board could operate the program more cheaply and efficiently than the Stockgrowers, board President Mark Kimball of Platte said last week.

Brand board members last week said they were willing to give the Stockgrowers only about 2 percent of the fees because the board paid all the expenses.

"We felt like that we weren't going to do it for nothing, and 2 percent was pretty close to nothing," Nelson said Monday.

Nelson said the Stockgrowers would continue its focus as an advocate for independent cattle producers. "We're not going anywhere. We're going to go right ahead and do what we've been doing."

Brand board officials did not return phone calls from the Journal on Monday. An e-mail from the brand board to the Stockgrowers did not indicate the breakdown in the Monday vote among the five-member board.

But last Wednesday, Kimball, Tom Conger of Buffalo Gap and Curt Mortenson of Fort Pierre voted against the Stockgrowers' proposal. Bart Blum of Reliance abstained.

Board member Lyndell Petersen of Hermosa was the lone member to vote in favor of the Stockgrowers last week. Petersen said he opposed the state taking over the contract. He said the state of Wyoming took over its brand inspection program and now has to subsidize it with taxpayer funds.

Nelson said the Stockgrowers Association used profits from administering the brand inspection program to help fund its organization.

Currently the program has 15 full-time inspectors, about 40 part-time inspectors, plus chief inspector Jim Reed and an administrative assistant in the Rapid City office.

It is not clear whether those employees will remain under the brand board.

Reed said last week that one inspector already had resigned over the dispute.

He said the brand board had not offered him a job. But, he added, "I'm not going to work for the brand board after all the heartburn they've given us over the past four or five years."

Aside from the brand inspection program, the Stockgrowers Association has two full-time employees. Nelson said those employees will remain on board, for now, at least.

Nelson said he isn't sure exactly how the group will replace the revenue from the brand inspection contract. "It's going to take us a little bit to assess what our position is," he said.

The organization's ties to brand inspection go back to the early 1890s, when the Western South Dakota Stockgrowers began operating the brand program in the state on behalf of livestock producers. The group later became the South Dakota Stockgrowers Association and operated the brand inspection program for most of the time since, except for a brief period in the 1930s, when the state Ag Department ran the program.

Contact Steve Miller at 394-8417 or [email protected].

http://www.rapidcityjournal.com/articles/2008/06/03/news/local/doc4844a10fc44e1967681248.txt?show_comments=true#commentdiv
 
Oldtimer said:
Do I smell the involvement of SDCA? :???:
Nope. This mess can be traced straight to our governor. I don't know what he's thinking, but he seems to be making a concentrated effort to destroy the hot iron brand program to implement an electronic animal ID.

Gov. Rounds fired all the Brand Board members in a Gestapo like raid in the middle of the night two years ago and filled the board with yes-men answerable only to him… at least that's what he thought he was doing. He made a mistake when he appointed former legislator and rancher Lyndell Peterson to the board.

Lyndell has been livid about this idiotic move and when I talked to the governor's office yesterday, they told me that Lyndell called to tell them he is resigning! I haven't been able to reach Lyndell by phone yet because they had a hail storm and flooding in his area and he has more urgent things to take care of now.

My phone has been ringing off the hook the last two days since the word came out that the Brand Board is making this a state program and the calls are coming from ranchers belonging to every ag organization in the state, not just from Stockgrowers.

Most of the folks calling me would be perfectly happy to have SDCA, Farm Bureau, Dakota Rural Action, Farmers Union, or any other ag group take over the inspection program. They just don't want the idiots in the Brand Board to ruin a program that has worked VERY well for over a hundred years.

The full-time brand inspectors will now have to be state employees with the salary and all the benefits state workers get. None of the governor's people I yelled at yesterday had any idea what they were going to have to do about the part-time brand inspectors or who they will get to fill the Chief Brand Inspector's spot held by Jim Reed, who also quit in disgust.

They have to have the program up and running by July 1 or the livestock yards, video auctions, and other sale programs will have to shut down and they don't have a clue how they are going to be able to do that. The Stockgrowers refused to run the program for nothing and the only Brand Board member that could help set up the program has quit in disgust.

It would be really entertaining to watch them scramble to come up with a viable program if we didn't have to worry about them hitting the producers' pocketbooks hard to pay for it. The 2009 session of the legislature should be lively!
 
Tell them out of work inspectors to head west if they want to stay in that profession.....We've picked up several from ND or SD in the years I've worked with them...And it seems we've always got openings for yard/market inspectors.....

Yep should be interesting to see how they put a program together- especially if they don't have the people that been handling it to do it.....
 
Here's the latest on the brand inspection fiasco in South Dakota. I greatly respect former Senator Lyndell Peterson for taking a stand on this in defense of the livestock producers in South Dakota. The program wasn't broke and this idiotic move does nothing to improve brand inspection. Again, read the comments following this article in the Rapid City Journal.

Petersen quits brand board over decision
State inspections start July 1
By Steve Miller, Journal staff Saturday, June 21, 2008


Lyndell Petersen, a former longtime state legislator, has resigned from the South Dakota Brand Board over the board's decision earlier this month to take over the brand inspection program from the South Dakota Stockgrowers Association.

Petersen and others also questioned whether the brand board can be ready to take over the brand inspection program when the contract with the Stockgrowers ends Monday, June 30.

However, Gov. Mike Rounds on Friday defended the brand board's decision, and the brand board chairman said the agency should be ready to administer the brand inspection program beginning Tuesday, July 1.

Petersen said this week that the brand board's 3-2 vote to end its contract for brand inspection with the Stockgrowers Association was a "totally incorrect decision, and I didn't want to be any part of it."

Under state law, the brand board is responsible for brand inspection, which is required when cattle and horses are sold or otherwise leave the West River area. The program is aimed at preventing livestock theft and determining ownership of lost or stray animals.

The brand board hired the Stockgrowers Association to administer brand inspection since the 1940s. The association also operated brand inspection on behalf of livestock producers beginning in the 1890s.

Petersen said the brand board based its decision to take over the program on selective recommendations of a consultant's report indicating the state could operate the program more efficiently than the Stockgrowers.

He said the problems between the brand board and the Stockgrowers began in early 2004 when Rounds fired four of the five brand board members. Petersen said Rounds, at the time, cited an investigative report alleging improper conduct on the part of brand inspectors, although no charges were ever filed.

Rounds on Friday said he dismissed the brand board members that year to get them out from under extreme pressure to reverse a vote they had taken to end the contract with the Stockgrowers. A compromise was reached later that year to reinstate the contract with the Stockgrowers, and Rounds appointed new members, including Petersen. Rounds said he greatly respects Petersen, with whom he served in the state Senate.

Petersen said the 2004 dispute came after the Stockgrowers Association dropped its affiliation with the National Cattlemen's Beef Association and aligned instead with R-CALF USA, splitting the cattle industry in the state. The South Dakota Cattlemen's Association remained aligned with the NCBA.

Petersen and others have suggested that some people in the cattle industry objected to the Stockgrowers using brand inspection profits to finance some of their political activities.

But Rounds said he doesn't care how contractors spend their money.

"I don't have a problem with the Stockgrowers as an organization," he said.

The governor said he is confident the brand board examined the facts and did its homework before deciding to take over the inspection program.

Under the contract expiring June 30, the Stockgrowers Association receives 8 percent of the total brand inspection fees of 80 cents per head. With about 1.4 million cattle and horses sold each year, the fee could reach more than $100,000.

The brand board offered a 2 percent fee, which the Stockgrowers rejected. The Stockgrowers proposed a 6 percent fee, which the brand board rejected. The board then voted on June 2 to take over the program.

Current chief brand inspector Jim Reed said he didn't think the brand board will be ready to operate the program on July 1. He said the board is facing a steep deadline to hire inspectors and get the documents ready to start inspecting brands on cattle sales.

"They're within six working days now of getting this thing put together," Reed said Friday. "I look for a terrible wreck if they can't supply enough inspectors to get this done."

Reed said the brand board asked him to stay on, but he declined, opting to retire. But he said about 12 of the 15 full-time inspectors probably will go to work for the brand board. He said many of the 130-140 local, part-time inspectors are quitting.

Petersen said the brand board's consultant recommended renewing the contract for one year as it prepared to take over the program.

However, brand board Chairman Mark Kimball of Platte said he believes the brand board will have the program ready on July 1.

"I think for the most part, we're going to be in pretty good shape," Kimball said. "As for anything that goes through a change like this, there will be some hills and valleys."

He said the board is interviewing three current full-time inspectors to replace Reed.

Contact Steve Miller at 394-8417 or [email protected].

http://www.rapidcityjournal.com/articles/2008/06/21/news/local/doc485c5fe70e7e9786026569.txt
 
Our latest issue of Cattle Weekly had this letter to the editor from Lyndell Peterson. He offers some insight into the background of the Brand Board debacle that most of us weren't aware of.

Dear Editor:

When the smell of burning grass drifts in, what does a rancher do? Dumb question. He knows instinctively what to do. In minutes the word is spread and a force of volunteers and equipment is on the move to head off a disaster.

After the fire is out and the fire fighters gather to take stock of the damage they find their group included cattle buyers, auction market owners, bankers, truckers and housewives. When the non-ranchers asked why they are there the answer - in unison - would be "because we're stockholders".

There is another smell moving in over the livestock industry and it deserves the same attention given the smell of burning grass. It's time to mount up.

If you say you don't smell anything, sniff again. The smell in South Dakota intensified back when Governor Rounds fired four of the five Brand Board members on the strength of a so-called investigative report on brand inspection. No charges were ever filed yet the report was made public. How often have you seen an investigative report publicized before charges are filed? This action took place some time after the South Dakota Stockgrowers dropped their affiliation with the NCBA and joined the R-Calf alliance. Coincidence? You decide. (I never did figure out why the Governor didn't fire all five Brand Board members.)

There are lots of dots that might be connected and if they were it might lead one to believe that what is happening to the brand inspection program is part of a long term goal. Some of the dots - Animal ID, Premises Registration, Beef Check Off - all rooted in federal and state agencies that deliver the influence of business interests that benefit through the mechanisms of government.

To make sure you know what is happening to brand inspection - in case you weren't aware. The brand inspection program is being converted into a government program to be managed from Pierre. This is being done on the basis of selectively extracted recommendations from a consultant report. The premise is than the "state" can run the program at the same cost and achieve greater efficiency and more effective law enforcement results. Producers pay the costs now and producers will pay the costs later.

Stakeholders, the tools you have to deal with this "smell" exist because we live in a democracy. The tools are useless unless you pick them up and use them. It's yours to decide - it's your line in the sand to draw - it's your backfire to light.

Lyndell Petersen
14895 Lower Spring Creek Rd.
Hermosa, SD 57744
605-342-5595
 
If you say you don't smell anything, sniff again. The smell in South Dakota intensified back when Governor Rounds fired four of the five Brand Board members on the strength of a so-called investigative report on brand inspection. No charges were ever filed yet the report was made public. How often have you seen an investigative report publicized before charges are filed? This action took place some time after the South Dakota Stockgrowers dropped their affiliation with the NCBA and joined the R-Calf alliance. Coincidence? You decide. (I never did figure out why the Governor didn't fire all five Brand Board members.)

There are lots of dots that might be connected and if they were it might lead one to believe that what is happening to the brand inspection program is part of a long term goal. Some of the dots - Animal ID, Premises Registration, Beef Check Off - all rooted in federal and state agencies that deliver the influence of business interests that benefit through the mechanisms of government.

I wonder if this "new" brands board now stands to get one of these big money taxpayer funded "grants" to promote- and set up- Premise ID and NAIS for the lucky folks of S.D. ....

Group by Group- State by State- this gang of Lobbyist bought out Crooks in the USDA and D.C. are making their "voluntary ID" mandatory...But as they have on everything else- they don't have the cajones to admit it- or do it in the open-- preferring to do it thru the backdoor- backroom method....
 
OT, I honestly don't have any idea why the governor is doing what he's doing, but Lyndell is right about the smell - this stinks somethin' awful!!!

If the Brand Board can't (or won't) do our brand inspections "more efficently and cheaper" to quote BB Chairman Mark Kimball, these idiots are going to have some really tough questions to answer before the Ag and Natural Resources Committe next January.

I have never seen an issue that has every rancher in western South Dakota stirred up like this one has. And it isn't just Stockgrowers members I'm getting calls from. They are also coming from local brand inspectors, Farm Bureau, Farmers Union, SD Cattlemen, and Dakota Rural Action members, and from people with no affiliation with any organization. They might differ on a lot of issues but all the folks who have called me realize that having the state take control of OUR brand inspection program is a huge and potentially costly mistake.

Frankly, I don't have much use for R-Calf myself, but if this all came about because the Stockgrowers are aligned with R-Calf instead of NCBA the governor has taken advice from some folks that have more to gain than he has to lose by this ill-advised move.

Destroying our brand inspection program because he doesn't like Stockgrowers politics is - dare I say it? – idiotic! I hope for Gov. Rounds' sake he finds some different advisors that will keep both the governor's and the ranching community's interests in mind.

The highway department doesn't check out the politics of the contractor they hire to build roads because all they care about is getting the best job done for the least amount of money and that those should be the only concerns when picking a contrator to do brand inspections.
 
Well- Liberty Bell, that is the reason I asked the question about the SDCA (NCBA affiliates) earlier...I know little of S.D. politics, except for what I gleam from a couple of the S.D. posters that I talk to off and on with on the phone-- but this fits a long pattern I have watched in Montana, and across the nation- where the welfare of the cattleman/local cattle industry comes second to that groups political and Big Corporate leanings....

This just reeks of the smell of a fire started at the hands of NCBA-- you know the smell, like burning cow manure..... :wink: :(
 
The next state legislative session will have a hearing by the Appropriations committee to explain the Brand Board budget .The financials are published in the Budget Book and used by Appropriations to conduct hearings .
The hearing is for information only. The Committee has not molded the BB budget because it is attached to the Dept of Ag for information only. However, it is assessed the state fee for administration to pay its share of the costs of the Dept of Ag.
Over the years the BB has set aside reserves from which they receive annual income.
The BB operation is striving for transparency and a close working relationship with cattlemen and the financials are important to cattlemen . .
I do not think the inspection fee from the 2007 and 2008 levels should be changed by rule until the reserves of the BB are in a near negative balance .
The 2008 financials of the Brand Board are available through the website of the Legislative Research Council -
 
Could it be that there's more to this story than is being talked about publicly?

Wasn't there a lawsuit settled by SD Stockgrowers recently over an inspector that was wrongfully dismissed? Anyone know any of those little details?

Could it be that until R-CALF comes clean publicly with an independent audit of its financials and its membership roster that some want to stop the flow of SD brand money into the organization through the SD Stockgrowers?

Could it be that a lot of the folks paying brand fees do NOT want their money used to support R-CALF because of the lack of transparency and secrecy in Billings?
 
Reggie said:
Could it be that there's more to this story than is being talked about publicly?

Wasn't there a lawsuit settled by SD Stockgrowers recently over an inspector that was wrongfully dismissed? Anyone know any of those little details?

Could it be that until R-CALF comes clean publicly with an independent audit of its financials and its membership roster that some want to stop the flow of SD brand money into the organization through the SD Stockgrowers?

Could it be that a lot of the folks paying brand fees do NOT want their money used to support R-CALF because of the lack of transparency and secrecy in Billings?

Could it be that you're trying to invent issues and links just to stir up crap?
 
I think that you are.

Everything is secret at R-CALF these days. Board members, if they wanted to be in the loop, had to sign confidentiality agreements and TAKE LOYALTY OATHS. Sounds like a cult to me. One board member resigned after the annual convention this year, but there's been no public explanation as to why. Meeting minutes are only available if you can afford the fuel to travel to Billings. When was the last time that board members saw a financial statement that was anything beyond the CEO's own spread sheet. Annualized, accountant-generated financial sheets are the only mechanism to provide for strict accountability of membership money and that's not available to the general membership. What about an independent audit of the books so members will know that the appropriate methods to handle cash have been implemented. Members are entitled to know all the details about their board and how their money is being spent but that's not how business is being done at R-CALF today. It's all secret and opaque and quite contrary to what R-CALF demands from other organizations and agencies.

Based on the free-flow of money from SD Stockgrowers into R-CALF's coffers without any accountability, the brand board made the right decision.

SD Stockgrowers used the brand program just like NCBA uses the checkoff. Hypocrites!
 
Reggie said:
I think that you are.

Everything is secret at R-CALF these days. Board members, if they wanted to be in the loop, had to sign confidentiality agreements and TAKE LOYALTY OATHS. Sounds like a cult to me. One board member resigned after the annual convention this year, but there's been no public explanation as to why. Meeting minutes are only available if you can afford the fuel to travel to Billings. When was the last time that board members saw a financial statement that was anything beyond the CEO's own spread sheet. Annualized, accountant-generated financial sheets are the only mechanism to provide for strict accountability of membership money and that's not available to the general membership. What about an independent audit of the books so members will know that the appropriate methods to handle cash have been implemented. Members are entitled to know all the details about their board and how their money is being spent but that's not how business is being done at R-CALF today. It's all secret and opaque and quite contrary to what R-CALF demands from other organizations and agencies.

Based on the free-flow of money from SD Stockgrowers into R-CALF's coffers without any accountability, the brand board made the right decision.

SD Stockgrowers used the brand program just like NCBA uses the checkoff. Hypocrites!

After going through what Kiker pulled and then the subsequent Frothing Horses, they're understandably a bit defensive and maybe even a bit paranoid. However, 'm not concerned about the financials. I compare what R-CALF is doing for the producer compared to NCBA and I gladly write my $50 check. If Bill or the directors take my money and buy themselves a bottle of Bookers, I feel they deserve it. R-CALF is the ONLY outfit looking out for producers and thus, my living, my community, and the largest industry in my state. I don't think that can even be debated.
 
You're entitled to feel that way just as others are entitled to want a higher level of accountability from an outfit that considers themselves a national organization - and one that cries for competition and transparency. You have no credibility when you're willing to dismiss the flaws in your own organization yet criticize others for the same thing your organization commits.

One has to wonder if it's just a bottle of Bookers that they have to hide. I smell some books cooking.

And what exactly is it that you think Kiker "pulled"? You must have all the facts, eh? Or is this just another of your rumor-based tangents. I loved Swift Horses because it was the only place to see the actual documents and get the truth. Now I visit Swift Stallions all the time to see the latest R-CALF follies. Like paying their attorney to discover Leo McDonnell's contact information. How ridiculous and what a shameful waste of producer money. We all know where Leo lives and how to contact him. If they want to serve papers on him why don't they check on the original corporate documents for R-CALF to find out what his address is.

I'll say it again. The SD brand board made the absolute right decision. Any other state organization hooked at the hip with R-CALF had better take note.
 
Kiker was told NOT to do something by the board and he went ahead and did it anyway. When you willingly disobey your boss, you usually get fired no matter where you're working. I guess Frothing Horses never mentioned that.
 
There you go again. Posting something like an authority when you're not.
I thought as much. Have you called Kiker to ask him or discuss it with him? It's a rhetorical question because I already pretty much know the answer. Are you swallowing whole what you're told by those you're comfortable talking to? I thought as much. Suck it up and call Kiker and maybe you'll learn something. Until you do so, you're not entitled to an opinion on the matter.

Here's a clue for you. With the simple push of a button, the R-CALF accountant (who probably pays all the bills) can print out a general ledger report, a balance sheet...members need to have available to them every single transaction that has occurred in the past two - three years. It will be enlightening. Meeting minutes would also be real enlightening but then we can't view those if we don't live in Billings. Why the secrecy? Why the lack of transparency? What's to hide?

I was on a plane not long ago and saw Bill Bullard flying first class. Nice use of producer money. How much money, exactly, is the Bullard family pulling out of R-CALF annually? The CEO's salary expanded with the membership because he received a kick-back with every membership sold at one time. Has that salary been commeasurately reduced as the membership has shrunk?

What exactly are the true membership numbers of R-CALF? Does anyone really know? Nope.

And they're paying an attorney to "unearth" Leo McDonnell's contact information???? That's how much respect you and your outfit have for the man who had the cajones to start it all??? You're pathetic.

Little wonder at least one board member was smart enough to get out while the getting was good. Oaths of loyalty, confidentiality agreements, it all reeks of something nasty.
 
You don't like it, don't join. I'm looking at what's getting done and trying to get done. Thats where I'm judging, the bottom line. All that other crap is petty and just a distraction - and it's from non-members. If membership was as concerned as the outsiders are, we could change anything. Unlike NCBA, members make the rules and they can't be overridden by leadership. I didn't go to the convention, but I didn't hear about that topic coming up.
 

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