Who decides how checkoff $$$ are spent?
by Charlene Schuster, Executive Director, Montana Beef Council
Several times a year, we at the Montana Beef Council are asked: "Who decides how the checkoff dollars are spent?" The answer to that is very easy: the producers. Here is how it works.
The checkoff starts in our state The beef checkoff process starts at the state level where, under the law, $1 is collected on each head of cattle and calves sold. Fifty cents automatically goes to the Cattlemen’s Beef Board, and the Montana Beef Council retains 50 cents. The structure of the checkoff program is based on the following directives:
- All producers and importers pay the same $1 per head. For example, the checkoff is paid at customs for any cattle crossing the Canadian border. If the cattle are re–sold after entering the US, another dollar is paid at the time of the sale.
- In Montana, as in all states, producers control one- half of the money collected by state beef councils 50 cents of every dollar.
- All national checkoff-funded programs are budgeted and evaluated by the Cattlemen's Beef Board, an independent organization of 108 checkoff–paying producers. To dispel a myth, no packers sit on the Cattlemen’s Beef Board.
- Cattlemen’s Beef Board members are nominated by fellow state producers and appointed by the Secretary of Agriculture.
- Three Montanans are members of the Cattlemen’s Beef Board: Larry Descheemaeker of Lewistown, Jim Almond of Hysham and Carol Mosher ofAugusta. They and other board members provide oversight to all of the national programs funded with checkoff dollars, such as the national TV ad campaign, partnerships with Taco Bell and other foodservice operations, the nationwide summer grilling campaign, human nutrition research on the importance of beef in a healthy diet, youth education programs and much more.
What can the checkoff do?
The beef checkoff acts as a catalyst for change. The checkoff doesn’t own cattle, packing plants, retail stores or restaurants. It can't single–handedly turn around a bad market. The beef checkoff program was designed to stimulate others to sell more beef through such initiatives as consumer advertising, marketing partnerships, public relations, education and new product development.
What can't the checkoff do?
By law, checkoff funds cannot be used to influence government policy or action, including lobbying.
What about the 50 cents that stays in Montana?
Ten producer groups representing the beef industry hold 11 seats on the Montana Beef Council. These 11 directors have very specific responsibilities as outlined in the Beef Promotion Act and Order: 1) set program priorities for all checkoff dollars and programs funded with producer dollars, 2) set the budget, 3) monitor the progress of beef education, promotion and research programs being conducted in–state, and 4) evaluate all programs upon completion. This board meets three times a year and all board meetings are open to producers. The next meeting is May 13, 2003 in Billings.
How can producers help make decisions on how dollars are spent?
That is very easy and can be accomplished in variety of ways. As mentioned above, all meetings are open to producers. Producers can also call the MBC Office at 406–442–5111 or contact any member to provide suggestions. For a complete list of directors or an annual report with detailed program accomplishments this past year, contact the MBC.
Remember, YOUR CHECKOFF PROGRAM IS PRODUCER RUN...at the state and national level. We welcome your input at any time.