Understanding Your Beef Checkoff Program

1. 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. Beef Board Structure • 106 members • Nominated by producer organizations • Appointed by U.S. Secretary of Agriculture

5. 2011 CBB Representation Feeder 12% Dairy 13% Stocker 8% Importer 5% Backgrounder 5% Seedstock 3% Purebred 1% Cow-Calf 51% Market Operator 1% Dealer 1% By industry segment

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

11. 2011 CBB Representation Feeder 12% Dairy 13% Stocker 8% Importer 5% Backgrounder 5% Seedstock 3% Purebred 1% Cow-Calf 51% Market Operator 1% Dealer 1% By industry segment

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

13. ImportersPay $1/head or equivalent Dairy, Beef, Veal ProducersPay $1/head StateBeefCouncils Cattlemen’s Beef Board 50¢ 10 50¢ Federation State Beef Councils Operating Committee 10 PromotingResearchingEducatingSafeguarding

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

20. 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.