In my effort to educate you dingbats about all-things-beef, I figured this would be a nice little primer on what’s going on in the industry around the Beef Checkoff Program.
In 1985, the Food Security Act, aka the “Farm Bill,” established something called the Beef Checkoff Program. The program, which later became mandatory in 1988, takes $1 per head on the sale of live domestic and imported cattle, in addition to a comparable grab on imported beef and beef products.
The dough is collected by state beef councils, which retain up to half the amount collected. The state councils give the other half to the Cattlemen’s Beef Promotion and Research Board, which oversees the national checkoff program, subject to USDA review.
There are 100 members of the Cattlemen’s Beef Board. They’re nominated by fellow beef producers and appointed by the Secretary of Agriculture, and they represent all segments of the beef industry.
Beef Checkoff was designed to get people to sell more beef and motivate consumers to buy more beef. This is accomplished through advertising, marketing partnerships, public relations, education, research and new-product development. The Beef Act defines six program categories: (1) promotion, (2) research, (3) consumer information, (4) industry information, (5) foreign marketing, and (6) producer communications.
You may have heard the slogan “Beef: It’s what’s for dinner” somewhere in your travels. That’s just one example of their success.
But fear not! By law, checkoff funds can’t be used to promote breeds or brands without USDA and Beef Board Executive Committee approval. Furthermore, checkoff funds can’t be used to influence government policy or action (including lobbying). The law also disallows checkoff money to be invested in production research that isn’t aimed at improving beef products.
The main goal of the program is to increase commodity demand, and thus increase economic growth in the industry. Most beef and dairy producers believe that their beef checkoff dollars bring value back to them. Many of my posts are a result of beef checkoff funding, actually. The MBA and Top of the Class programs in which I participated were funded by the checkoff. Do you think that money went to good use? I do!
Should the funding ever increase (to more than $1 per head, for example) the checkoff may consider putting the “Beef: It’s What’s For Dinner” message back on TV, stepping up consumer education, or increasing foreign market development.