Stockgrowers encourages industry to consider stakes of checkoff reform

beef checkoff logoIn response to beef industry stakeholder concerns about the structure and proposed reform of the national beef checkoff program, Montana Stockgrowers Association (MSGA) encourages cattle producers to consider critically what is at stake for the industry research, education and promotion efforts.

On September 30th, Secretary of Agriculture Tom Vilsack announced intentions to implement a new supplemental beef checkoff program by January 2016. The new program would operate under the 1996 Commodity Promotion, Research and Information Act, separate from our current 1985 Beef Promotion and Research Act. A referendum on the new proposal would be held within three years of implementation. The proposal will be published by the end of 2014 or early 2015 in the Federal Register.

This approach is an alternative to the program enhancements being negotiated by the Beef Checkoff Enhancement Working Group*, which involved membership organizations representing industry stakeholders. In August, the group reviewed a draft memorandum of understanding that would serve as the negotiated enhancement. Soon after, the National Farmers Union withdrew from the effort, citing “the process is unlikely to result in necessary reform. It is time for the USDA to react to beef producers’ demand to reform this system.”

This outcome is unfortunate, especially during this time of strong cattle market fundamentals and an industry outlook that will require strategic investment in promotion and research. MSGA’s response and approach to this is two-fold.

First, MSGA sent a letter to Secretary Vilsack along with forty-four state cattlemen’s associations outlining our structural concerns between the 1996 Act and the 1985 Act. Two specific points are focused on governance and limited coordination between qualified state beef councils and their federation.

Secondly, despite our opposition, Secretary Vilsack has given no indication that he will withdraw the proposed rule. Therefore, MSGA will be working within the rulemaking process to offer design recommendations and comments. Our focus will be to influence decisions that yield the best outcome even with the working group’s inability to find a compromised solution.

The scope of MSGA’s input to the proposed rule will include the following:

  • MSGA supports an increase in the beef checkoff assessment, along with a petition and referendum model. Emphasis should be made on structuring the most efficient and effective process to increasing the checkoff.
  • MSGA also supports greater flexibility and competitive contract proposals by removing any reference to the charter date of an established national, non-profit, beef industry organization. MSGA will recommend that return on investment should be a key evaluation metric.
  • A balanced portion of checkoff revenues paid by U.S. producers should be allocated to promote U.S. beef within the context of federal country of origin regulations.
  • MSGA recognizes the importance of government oversight, but we do not want complete government control. It is critical to allow stakeholders who pay in to have decision-making authority.

Undoubtedly, USDA will likely have an effect on our industry’s investment program and its economic value. Our approach is simple. Focus resources on the ability to anticipate and affect the formation, enforcement and modification of the proposal and ensure that it has a positive outcome for the broader beef industry.

Feel free to contact the Montana Stockgrowers Association to provide your comments or input on Beef Checkoff reform by calling the Helena office, (406) 442-3420.

–Errol Rice, Executive Vice President, Montana Stockgrowers Association

United States Department of Agriculture

USDA Announces Funding to Train and Educate Next Generation of Farmers and Ranchers

United States Department of AgricultureThe following is a Press Release from the USDA, April 11, 2014 – Today, USDA Secretary Tom Vilsack announced the availability of more than $19 million in grants to help train, educate and enhance the sustainability of the next generation of agricultural producers through the Beginning Farmer and Rancher Development Program (BFRDP).

“USDA is committed to the next generation of America’s farmers and ranchers because they represent the future of agriculture and are the backbone of our rural economy. As the average age of farmers continues to rise, we have no time to lose in getting more new farmers and ranchers established.” said Secretary Vilsack. “Reauthorizing and expanding the Beginning Farmer and Rancher Development Program is one of the many resources the 2014 Farm Bill gave us to build America’s agricultural future. Through this program, we can build a diverse next generation of farmers and ranchers.”

BFRDP is an education, training, technical assistance and outreach program designed to help farmers, ranchers and managers of non-industrial private forest land – specifically those aiming to start farming and those who have been farming or ranching for 10 or fewer years. It is managed by the National Institutes of Food and Agriculture (NIFA). NIFA will competitively award grants to organizations conducting programs to help beginning farmers and ranchers. Learn more about eligibility and how to apply (applications are due June 12, 2014).

Priority will be given to projects that are partnerships and collaborations led by or including non-governmental, community-based, or school-based agricultural educational organizations. All applicants are required to provide funds or in-kind support from non-federal sources in an amount that is at least equal to 25 percent of the federal funds requested.

By law, at least five percent of available funding will be allocated to programs and services for limited-resource and socially-disadvantaged beginning farmers and ranchers and farmworkers. Additionally, another five percent of available funding will be allocated for programming and services for military veteran farmers and ranchers.

BFRDP was authorized by the 2014 Farm Bill, receiving $100 million to be awarded over the next five years. The program was originally funded through the 2008 Farm Bill. Since then, NIFA has awarded more than $66 million through 136 grants to organizations that have developed education and training programs. More than 50,000 beginning farmers and ranchers have participated in projects funded by BRFDP.

NIFA is hosting two upcoming webinars for interested applicants on April 30 and May 6 at 2:00 p.m. Eastern. The first webinar will focus on general guidelines for the program, while the second webinar will focus on the funding allocations for socially-disadvantaged and military veteran farmers and ranchers.

Through federal funding and leadership for research, education and extension programs, NIFA focuses on investing in science and solving critical issues impacting people’s daily lives and the nation’s future. More information is available at: www.nifa.usda.gov.

#
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay)