Beef Checkoff Questions And Answers
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About ‘The Beef Checkoff’
1) What is the beef checkoff?
The checkoff is a producer-funded marketing and research program designed to increase domestic and/or international demand for beef. This can be done through promotion, research and new product development, and a variety of other marketing tools. The Cattlemen's Beef Board and USDA oversee the collection and spending of checkoff funds.
2) How can checkoff dollars be used?
As mandated by law, checkoff dollars must be invested in programs to increase consumer demand for beef, and to create opportunities to enhance producer profitability. The act defines six program categories: promotion, research, consumer information, industry information, foreign marketing and producer communications. It’s important to note here that the law does not allow checkoff dollars to be invested in production research.
3) Who benefits from the beef checkoff?
The fundamental goal of every checkoff program is to increase commodity demand, thereby increasing the potential long-term economic growth of all sectors of the industry. And producers agree
[1] the beef checkoff:· “Has helped contribute to a positive trend in consumer demand” – 79% agree
· “Has helped contribute to the profitability of my operation” – 65% agree
· “Even when the market is down, the checkoff has value to producers” – 80% agree
4) I’ve heard that the Cattlemen’s Beef Board wants to increase the checkoff. If that’s true, how much do you want?
The Cattlemen’s Beef Board administers the $1 per head checkoff program, subject to USDA approval, and can’t take a stance on whether the amount should be increased or by how much – this is a policy-related question that organizations representing cattlemen need to take up.
- But I’ve heard that the Beef Board is asking cattle groups around the country for suggestions on ways to improve the checkoff. What’s that about?
As the program administrator, the Board is authorized by its governing legislation to provide information to the Secretary that could be used to improve the program after 20 years of operation. So, the board is asking industry organizations for their suggestions before it completes its report. In fact, if you have a suggestion, we’d like to hear from you. Bottom line is this: Beef Board will gather the information and compile a report. It will not lobby for specific changes.
5) What would the Beef Board do with the money if the amount were to be increased?
Should producers agree to an increase after more than two decades – and producers would have to vote on this change – producers who represent us on the Beef Board or state beef council would carefully analyze where it could have the biggest impact and produce the most benefit to the industry. I suspect they’d consider putting the “Beef. It’s What’s For Dinner” message back on television, increasing our foreign market development efforts and stepping up our consumer education efforts, among others.
[1] Beef Producer Attitude Survey, Aspen Media & Market Research, Jan. 2008, a random survey of 1,225 beef producers nationwide with a ±2.8% margin of error.
Funded by the Beef Checkoff.