Here we go again, another effort by the same actors to change the way the Beef Checkoff and other commodity marketing boards operate. This has been an ongoing battle by the same people ever since our industry institutions consolidated almost 30 years ago to become more efficient.
Again, we have a group of senators and congresspeople worried about oversight of the many checkoff programs expenditures. The Beef Checkoff generates around $40 million from cattle producers who are charged $1 per head when they market cattle. Everyone pays and receives an 11:1 return on investment,
I would say these senators have much bigger government oversight issues to deal with than the Checkoff. Let’s start with forgiving school loans, some of the grant money the agencies doll out or the billions of dollars given to the Ukraine war effort. War is big business, and you know someone is taking a commission somewhere in the name of humanity.
This checkoff program bill, The Opportunities for Fairness in Farming Act, was reintroduced in the Senate by our friend, Sen. Cory Booker (D-NJ), who wants to turn the beef industry on its head and is vegan; Sen. Mike Lee (R-UT), who lives in the home state of the largest ranch company in North America, Deseret Ranches; Sen. Rand Paul, (R-KY)—go figure?; Sen. Elizabeth Warren (D-MA), the communist; and Sen. Kirsten Gillibrand (D-NY). Reps. Nancy Mace, (R-SC-01) and Dina Titus, (D-NV-01) introduced the House bill.
The bill is asking for more transparency and fairness in checkoff programs, along with audits. It also claims it will prohibit anti-competitive, deceptive and disparaging practices. And it will prohibit checkoff boards from doing business with parties who work to influence government policy. In their unified press release, the authors say “unfortunately, some checkoff programs have developed a reputation for unscrupulous behavior.” However, every checkoff program is under fire because of a few poor decisions or mistakes. Yes, we all know that the Beef Checkoff paid for an NCBA officer’s international travel bill, which was rectified.
The Agricultural Marketing Service has oversight over all these checkoff programs and that should be enough. The irony is the same people who tried to harm the Beef Checkoff 25 years ago are still at it. R-CALF, Organization for Competitive Markets, Farm Action Fund, Animal Wellness Action, and the list goes on. There is an anti-animal agriculture element behind most of these groups.
The checkoff has been in and out of court its entire lifetime—since 1986. Cattle producers continue to support it. Cattle folks had their opportunity two years ago to sign a petition calling for a referendum. This was attempted by our friend at R-CALF, Bill Bullard, who has made a career of being an anti-NCBA activist. NCBA may not be perfect, but I trust their efforts to promote a positive business environment in Washington D.C. for cattle people.
These anti Beef Checkoff activists have tried everything in the book to maim NCBA. The checkoff was a democratic process and the majority of cattlemen who voted in 1986 got their self-help program. Now that we live in a political world, everyone is looking to government to fix any little perceived problem. The Checkoff is not a problem. As far as government goes, I’d say they have other more important issues to deal with than commodity checkoff programs. NCBA has spent $3.5 million over the last 20 years defending the Beef Checkoff, and those are NCBA dues dollars, not checkoff funds.
We have the best beef demand in history, and cattle prices are on a strong upward trajectory and will remain that way until we start herd expansion, which is at least two years away. And we have good moisture in much of the West. Grass and greenbacks, what could be better?
I would give the Beef Checkoff and the Federation of State Beef Councils a lot of credit for the cattle and beef market we have. The checkoff did the market research and the product research, and discovered new beef cuts to get us where we are. The cattle industry took control of their destiny with the Beef Checkoff. We also changed the product and started value-based marketing and did genetic research to produce the best beef product in the world.
If you don’t like the fact that the two organizations work in the same office, I would suggest you get over it. There is not a lot to complain about this industry going forward. I would, however, continue to pray for spring rain. — PETE CROW
