Urge the U.S. Secretary of Agriculture and the Attorney General
to Appeal the Eighth Circuit Court Decision Regarding Beef
Check-Off Program!

07/17/2003

• On July 8, 2003, the Eighth Circuit Court of Appeals affirmed a federal judge's ruling that the mandatory beef check-off program is unconstitutional.
• Please contact U.S. Secretary of Agriculture, Ann Veneman and Attorney General, John Ashcroft to urge them to appeal the court decision to protect the long-term marketing climate for beef.

Last week, a panel of three judges of the U.S. Eighth Circuit Court of Appeals upheld a June 2002 ruling that deemed the current Beef Check-off Program unconstitutional. The Eighth Circuit Court of Appeals ruled that the Beef Promotion and Research Act violates the First Amendment of the U.S. Constitution by compelling farmers and ranchers to pay for generic advertising with which they disagree. At the same time, the court said the program may continue while the parties decide whether to ask the full Circuit Court to reconsider the decision. Check-off fees will probably continue to be collected as long as the case is in court. Given the split in authority nationwide concerning the constitutionality of agricultural commodity check-off programs, it is likely the case will be appealed to the U.S. Supreme Court.

Since 1985, producers have paid a mandatory $1 per head fee on all beef livestock sold. The fee is also paid on imported beef. Known as check-off funds, the $80 million or so a year collected is used for beef promotion and education. The $1-per-head check-off fee is collected by approved state beef councils. Of it, 50 cents goes to the national Cattlemen's Beef Promotion and Research Board, more commonly called the Beef Board. That money is used for beef promotion and education. While they can spend it on their own, state beef councils often send a portion of their check-off money to the Beef Board as well. The Beef Board can work with more than 100 promotional groups, but the National Cattleman's Beef Association is easily its largest contractor. Together, the groups came up with the popular "Beef. It's what's for dinner" commercials.

In independent surveys conducted since Congress launched the beef check-off program in 1986, producers have repeatedly voiced strong support for the program. In the latest survey, released in January 2003, about 75 percent of producers said they believed that the Beef Check-off Program helps them compete against other proteins, such as pork and chicken. Supporters of the nationwide beef check-off should ask the U.S. Justice Department and Agriculture Department to try to have a federal appeals court decision that declares the check-off program unconstitutional overturned.

The National Grange's policy on the Check-off Program is as follows:

• The National Grange continues to support the beef promotion programs. We urge State Beef Councils to join in cooperative efforts to target Beef Check-off Funds to larger consumer audiences. However, the National Grange recommends that the National Beef Promotion Board consider eliminating the $1.00 "Beef Check-off" on any animal that, when sold, the farmer would receive $20.00 or less.
• The National Grange recommends that the provisions of any check-off be approved by a majority of the producers of that commodity in a national referendum. Following producer approval, the programs shall be mandatory, without refunds, and that no more than 5% of the check-off funds can be used for administrative costs. The funds shall be under the control of the promotion board with oversight responsibility in the U.S. Department of Agriculture.
• The National Grange supports a study to determine the feasibility of a check-off program for wheat to fund a research, educational and promotional program on the nutritional benefits of wheat flour products.

Action Plan --- Please contact U.S. Secretary of Agriculture, Ann Veneman and Attorney General, John Ashcroft to urge them to appeal the court decision to protect the long-term marketing climate for beef.

If you have any questions or comments please contact Legislative Research Analyst Chil-Sook Hwang by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 109. Thank you for your grassroots participation in the National Grange Legislative program.

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