Beef Checkoff program discussed at event

Cattlemen were given a sobering assessment of the Beef Checkoff's revenue situation from National Cattlemen's Beef Association President John Queen at the 2007 Texas Cattle Feeders Association National Convention.

"There is ongoing discussion in the beef industry about whether to increase the checkoff from the $1 per head level it has been at since its inception," said Queen, who added he would not be taking an official position on the issue until directed to do so by NCBA's state affiliates. But, he said, "there is reason to question whether the resources we currently have to promote beef domestically and internationally are proportionate to the challenges of our product."

Queen underscored his point by asking his audience a rhetorical question: "How many of you operate your feedyard today, your ranch at home, or any other business you're in with the same budget you operated on in 1985?"

When no one raised a hand in response, Queen said he wasn't surprised because it wouldn't be possible to do business on such an outdated budget.

"It is equally impossible to get what we need out of our checkoff when it is limited to the same budget established in the 1985 Farm Bill.

"It takes about $1.90 to get the purchasing power, due to inflation, that $1 gave us 20 years ago."

Checkoff-funded initiatives have added up to an increase in beef demand of almost 15 percent since 1998, Queen said. That translates to about $200 per head in the price of cattle.

The NCBA president said the current checkoff is not providing sufficient funding to develop more beef products and fund the research necessary to enhance the safety and quality of beef and to show its nutritional benefits.

"U.S. beef producers are falling behind foreign competitors when it comes to fighting for market share," he added, noting that Australia's checkoff equates to $4.22 in U.S. dollars, and Canada's $100 million federal budget for international beef promotion is almost four times as much as last year's Cattlemen's Beef Board Checkoff-funded budget for domestic and international promotion combined.