The Beef Checkoff An Old Law Needs Revised
Author unknown
The one dollar per head checkoff was voted into law through the USDA in 1985. One dollar per head would be paid to the beef council every time the animal would change ownership. If the original owner had retained ownership through slaughter, that animal would only have paid $1.00 checkoff. Conversely, if the bovine was sold as a calf, then again as a feeder and also as a finished beef animal, it should have had $3.00 collected. In the case of imported beef, a cold carcass weight of 509 lbs was established by the USDA in 1985, to represent the equivalent beef from 1 cow on which $1.00 checkoff is paid by the importer. The Act and Order is supposed to reevaluate this cold carcass weight number and base it on a 5 year average. It has not been updated since 1985. The current 5 year average is 592 lbs. In short, when this is updated, importers will be able to import more tonnage for their $1.00 checkoff. This extra tonnage is more competition for US producers and more competition for the consumer dollar. There are different conversion factors used concerning cooked and canned beef.
From the original rules that USDA has laid out, the checkoff can only promote generic beef, meaning Beef It's What's for Dinner could have originated from anywhere in the world. USA producers are not allowed to promote their own USA beef using checkoff dollars. The USDA reasoning is this: since importers also pay the $1.00 per head on the estimated per head basis, it would be unfair to categorize their beef as foreign origin.
I asked this question at the recent NCBA convention in Denver. Of the total beef consumed in the USA, what percent would be imported or have come from foreign origin? Mr Jim McAdams said it would be approximately 10%. My comment then was:
If 10% is imported then 90% must be USA origin. That means the importers who pay 10% of the checkoff dollars are in control of the generic beef label. The producers and feedyard operators pay 90% of the checkoff and are not allowed to differentiate their beef as USA origin in the meat counter.
Do not misunderstand me. I am not against promoting the greatest beef protein product in the world. I just want consumers to have a guaranteed origin on the beef they are feeding their families. The check off has served promoting our industry well in its early years.
When you look at the changes that have taken place since the inception of the Beef Checkoff, you have to consider The North American Free Trade Agreement, (NAFTA). Oh, but this was just the beginning, now CAFTA and the Australian Trade Agreement. This is only the beginning of World Trade Promotion. We are being set up to import a huge amount of beef. Our exports will be meager in comparison. Following is a list of Free Trade Agreements since 1985 when the Beef Checkoff became law:
Author unknown
The one dollar per head checkoff was voted into law through the USDA in 1985. One dollar per head would be paid to the beef council every time the animal would change ownership. If the original owner had retained ownership through slaughter, that animal would only have paid $1.00 checkoff. Conversely, if the bovine was sold as a calf, then again as a feeder and also as a finished beef animal, it should have had $3.00 collected. In the case of imported beef, a cold carcass weight of 509 lbs was established by the USDA in 1985, to represent the equivalent beef from 1 cow on which $1.00 checkoff is paid by the importer. The Act and Order is supposed to reevaluate this cold carcass weight number and base it on a 5 year average. It has not been updated since 1985. The current 5 year average is 592 lbs. In short, when this is updated, importers will be able to import more tonnage for their $1.00 checkoff. This extra tonnage is more competition for US producers and more competition for the consumer dollar. There are different conversion factors used concerning cooked and canned beef.
From the original rules that USDA has laid out, the checkoff can only promote generic beef, meaning Beef It's What's for Dinner could have originated from anywhere in the world. USA producers are not allowed to promote their own USA beef using checkoff dollars. The USDA reasoning is this: since importers also pay the $1.00 per head on the estimated per head basis, it would be unfair to categorize their beef as foreign origin.
I asked this question at the recent NCBA convention in Denver. Of the total beef consumed in the USA, what percent would be imported or have come from foreign origin? Mr Jim McAdams said it would be approximately 10%. My comment then was:
If 10% is imported then 90% must be USA origin. That means the importers who pay 10% of the checkoff dollars are in control of the generic beef label. The producers and feedyard operators pay 90% of the checkoff and are not allowed to differentiate their beef as USA origin in the meat counter.
Do not misunderstand me. I am not against promoting the greatest beef protein product in the world. I just want consumers to have a guaranteed origin on the beef they are feeding their families. The check off has served promoting our industry well in its early years.
When you look at the changes that have taken place since the inception of the Beef Checkoff, you have to consider The North American Free Trade Agreement, (NAFTA). Oh, but this was just the beginning, now CAFTA and the Australian Trade Agreement. This is only the beginning of World Trade Promotion. We are being set up to import a huge amount of beef. Our exports will be meager in comparison. Following is a list of Free Trade Agreements since 1985 when the Beef Checkoff became law:
