Still operating under a temporary injunction issued in June, the Montana Beef Council (MBC) is facing uncertainty as it looks to fund programs in the next fiscal year which begins Oct. 1.
The temporary order was issued June 21 by U.S. District Judge Brian Morris, upholding a lower court ruling in a case filed by the Rancher’s-Cattlemen Action Legal Fund, United Stockgrowers of America (R-CALF) claiming the federal Beef Checkoff Program in Montana violates the First Amendment of the U.S. Constitution. (See WLJ, July 3).
Although money collected while the injunction is in place cannot be used for state promotion, by federal law, it must still be collected. This means instead of retaining 50 cents for in-state promotion, the entire $1 per head of cattle sold will need to be sent to the Cattlemen’s Beef Board (CBB) national office in Centennial, CO. The MBC 2015-2016 annual report shows a budget of $924,798 for in-state promotions. Total in-state collections are approximately, $1,849,596 annually.
WLJ asked Polly Ruhland, CBB chief executive officer about a scenario that could involve the Montana checkoff money being sent to the national office, then used for promotion by CBB in Montana, possibly branded simply as “brought to you by CBB;” not specifically MBC.
Ruhland explained that she is still limited in what she can say because the lawsuit is ongoing, but the way beef is promoted in Montana will depend on how the court words its final decision. She added, “Under the preliminary injunction that exists today, yes, CBB funds could be used to do activities in Montana. These funds, if used in this way, would require the same producer governance approvals and USDA oversight as all other CBB funds.”
While also limited in her ability to comment, MBC Executive Director Chaley Harney talked to WLJ about promotion activities, saying, “We have to wait and see if we’re able to generate enough producer consent to basically have money to do Montana activities; and if that doesn’t happen then that will be something that our board will have to look into.” She continued, “What does the future look like? How will we continue to carry out our mission in Montana and for Montana? I’m not sure what it would look like or how we would carry it out.”
Faced with the uncertainty as the next fiscal year nears, Harney said, “We are trying to keep things moving forward as well as possible, but going into our next fiscal year, it is definitely going to look very different, particularly if we’re not able to get that money back to be able to carry out any programs in Montana.”
As of last week, Harney said 1,297 producers had returned opt-in forms indicating their desire to keep a portion of their checkoff payment in Montana. The forms, available online from the Montana Stockgrowers Association, (www.mtbeef.org/) give producers the option of offering consent by the month, or the year.
In the past, Montana checkoff funds have been used to educate consumers, students and health care providers about beef in a healthy diet. Funds are also used in promotion programs that include meat case displays, media advertising, culinary classes and more.
In a recent opinion piece, Lynda Grande of Columbus, MT, vice president of the Grande Ranch Company of Martinsdale and past president of the Montana CattleWomen’s Association, wrote about the value of checkoff dollars that are used to promote the annual Montana BBQ Cookoff in Absarokee. (www.montanabbqcookoff.com) She explained that event exposes as many as 4,500 barbecue fans to the taste of beef. Additionally, between $7,000-10,000 in beef purchases are made for the weekend event and used in the contest, by food vendors, and in television and radio interviews promoting the event beforehand.
Grande said the court decision means programs like this will not be possible. “Unless each producer gives their prior written consent, the entire dollar you pay for the checkoff will all go to support our national programs,” she wrote.
Reinforcing her support, Grande wrote, “As ranchers, our job is to raise the best cattle we can and the Montana Beef Council helps create a strong demand for the beef we produce so that we have markets demanding those cattle.”
WLJ reached out to R-CALF for comment, but as of press time had not received a response.
The beef checkoff is not unique among agricultural commodities. There are more than 20 checkoff boards to promote eggs, lamb, dairy, several fruits and vegetables, and even Christmas trees. Research and promotion programs, authorized by Congress, are requested, funded and driven by their respective industries. The USDA Agricultural Marketing Service (AMS) explains on its website, “The programs establish a framework to pool resources to develop new markets, strengthen existing markets, and conduct important research and promotion activities. AMS provides oversight, ensuring fiscal responsibility, program efficiency, and fair treatment of participating stakeholders.”
As of press time, there was no indication of when a final ruling would be issued. The case is being heard in the U.S. District Court of Montana, Great Falls Division.
