Under a new attempt for harmony over the beef checkoff program, the proposed $2 per head fee would be put to a nationwide referendum among cattle producers, says DTN. The $2 checkoff would be double the current rate. Beef industry groups have labored for three years to agree on an update of the program. Last fall, the National Farmers Union and a couple of other groups loudly dropped out of the talks. They wanted the $1 increase to be tied to changes in the way the research and promotion money is spent. At present, the National Cattlemen’s Beef Association, a trade group, is the dominant contractor.
“The latest proposal would require going to Congress to change the 1985 Beef Promotion and Research Act and Order,” says DTN. “If Congress adopts legislation, then a national referendum by beef producers would vote on whether to increase the fee.” Producers could get a refund of the $1 increase but not of the original $1 fee. The checkoff raises $80 million a year, half of which is available for national programs. Cattle inventory is at historic lows so the checkoff generates less revenue than in the past.