Understanding Your Beef Checkoff Program
2
Beef Checkoff History
Beef checkoff programs in the U.S.
date back to 1922 … when the
assessment rate was 5¢ a carload
3
Today’s Beef Checkoff Program
Established as part of 1985 Farm Bill
Became mandatory via national referendum vote by producers in 1988
Cattlemen’s Beef Board administers program, subject to USDA approval
4
106 members
Nominated by producer organizations
Appointed by U.S. Secretary of Agriculture
Beef Board Structure
5
Cow-Calf 51%
Dairy 13%
Feeder 12%
Stocker 8%
Importer 5%
Backgrounder 5%
Purebred 1%Market Operator 1%
Dealer 1%
Seedstock 3%
By industry segment2011 CBB Representation
6
The Checkoff Starts In Your State
All producers and importers pay the equivalent of $1 per head every time a bovine animal is sold
Qualified State Beef Council (QSBC) collects the dollar and sends 50 cents of each dollar to the Cattlemen’s Beef Board for investment into national checkoff programs
7
Basic Tenets Of The Checkoff
U.S. Customs collects $1-per-head or equivalent on all imported live cattle, beef and beef products and forwards the full dollar to the Beef Board
QSBCs can invest their 50 cents into state programs and/or invest an additional portion into national programs through the Federation of State Beef Councils or the Beef Board
8
Basic Tenets of Checkoff
All national checkoff-funded programs are budgeted and evaluated by the Cattlemen’s Beef Board, comprising 106 checkoff-paying producer volunteers
Beef Board producer members are nominated by producer organizations in their states and appointed by the U.S. Secretary of Agriculture
9
Total Checkoff Collections 2003-2011
2003 2004 2005 2006 2007 2008 2009 2010 20110
10
20
30
40
50
60
70
80
90
Total Assessments Collected Total Assessments to CBB
Total Checkoff Collections 2003-2011
(In millions)
Projected
Projected
10
2004 2005 2006 2007 2008 2009 2010 20110
5
10
15
20
25
30
35
40
45
50
55
60
2.80 2.81 2.62 2.65 2.62 2.63 2.68 2.76
4.981.66 1.46 1.59 2.43 2.30 3.36 3.33
2.03
2.12 2.42 2.55 2.27 1.801.80 1.69
4.205.50 5.08 4.83 5.25 5.44
5.52 5.70
5.996.15 5.96 6.66 6.28 4.94
4.75 4.61
6.246.72 7.44 7.15 7.41
6.106.44 6.66
27.9825.53 27.03 27.86
22.79
18.4919.28 18.07
LegendPromoResearch
Cons InfoForeign Mktg
Producer CommIndustry Info
Admin & Other
CBB Amended Budget by Program Area
Administration and Other includes Evaluation, Program Development, USDA Oversight and Administration Budgets
54.23
50.50 52.0053.28
49.05
41.743.8
42.8
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Cow-Calf 51%
Dairy 13%
Feeder 12%
Stocker 8%
Importer 5%
Backgrounder 5%
Purebred 1%Market Operator 1%
Dealer 1%
Seedstock 3%
By industry segment2011 CBB Representation
12
Where Checkoff Dollars Come From
$1 per head invested by about 900,000 beef, dairy & veal producers – $71.4 million
$1-per-head equivalent invested by importers – $6.4 million
$1 per head invested by producers in five states without beef councils – $37,000
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PromotingResearching
EducatingSafeguarding
StateBeef
Councils
Cattlemen’s Beef Board
Dairy, Beef, Veal ProducersPay $1/head
ImportersPay $1/head or equivalent
FederationState Beef Councils Operating
Committee
50¢
50¢
10
10
14
What CAN The Checkoff Do?
• Checkoff is a catalyst for change
• Designed to stimulate the supply chain
to sell more beef and consumers to buy
more beef
• Accomplished through a series of state
and national initiatives in 6 program areas
15
Program Definitions
Promotion
Research
Consumer Information
Industry Information
Foreign Marketing
Producer Communications
16
What CAN’T The Checkoff Do?
By law, checkoff funds cannot be used:
• To influence government policy or action,
including lobbying
• For any unfair or deceptive practices
• To reference any particular brand or trade
name without prior approval by CBB and USDA
17
Do Packers Pay?
• Any packer who owns cattle for more
than 10 days prior to harvest must pay
the dollar-per-head checkoff on those
cattle
• There are no packer seats on the
Beef Board
18
Key Checkoff Accomplishments
• Promoting high-quality U.S. beef in foreign
countries
• Working to continue growth in beef demand
• Funding product-enhancement and beef-safety
research programs to address safety and quality
issues
19
Key Checkoff Accomplishments
• Investing an average of $4 million annually
on beef-safety and product-technology
research
• Delivering beef enjoyment and nutrition
messages to consumers through the
checkoff-funded “Beef. It’s What’s for Dinner
campaign
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Key Checkoff Accomplishments
• Funding Beef Quality Assurance programs for
beef and dairy producers to strengthen
consumer confidence in the quality and
consistency of U.S. beef products
• Introducing new beef products to the
marketplace – more than 2,500 since 1998.