What is the Beef Checkoff and Who Pays? | Checkoff Chat
Q: Who is required to pay into the Beef Checkoff?
A: By law, all producers selling cattle or calves, for any reason and regardless of age or sex, must pay $1 per head to support beef/veal promotion, research and information through the Beef Promotion and Research Act, which is the 1985 enabling legislation for the Beef Checkoff Program. The buyer generally is responsible for collecting $1 per head from the seller, but both are responsible for seeing that the dollar is collected and paid.
In addition, the checkoff is collected at the same rate on every live beef animal imported and at the equivalent rate of $1-per-head on all beef products that are imported. [The current equivalent weight on live cattle is 592 pounds, and the formula for figuring the equivalents on imported beef and beef products is in the Beef Promotion and Research Order. See details of the rule in the Federal Register that set the current rate].
Q: Is anyone exempt from paying the dollar?
A: Producers of 100 percent USDA-certified organic products are exempt from most commodity checkoffs, based on separate legislation, but they must meet strict requirements and re-apply for certification on an annual basis. No other producer is exempt from the beef checkoff, according to the Beef Act. Buyers who resell cattle no more than 10 days from the date of purchase may file a non-producer status form and avoid paying an additional dollar. They are, however, responsible for remitting collected funds and reporting any transactions to the qualified state beef council.
Q: What is the penalty if someone doesn’t pay the $1 per head assessment?
A: A late fee of 2 percent on the assessments owed is compounded monthly. USDA can assess a civil penalty of up to $7,500 per transaction [the sale of one animal], plus those late fees.
Q: Can we vote on the checkoff?
A: Yes. The federal legislation that created the beef checkoff states that the Secretary of Agriculture may call a referendum as to continuation of the program when 10 percent of producers request it. Cattlemen would pay the cost of the referendum out of checkoff dollars.
Read more about the Beef Checkoff Programs in our Checkoff Chat Series with the Montana Beef Council. Click here to submit your own questions to be answered in future posts.
About the Beef Checkoff
The Beef Checkoff Program (MyBeefCheckoff.com) was established as part of the 1985 Farm Bill. It assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the $1 and forward the other 50 cents to the Cattlemen’s Beef Board, which administers the national checkoff program, subject to USDA approval. The Montana Beef Council was created in 1954 by cattlemen as a marketing organization for the Montana beef industry and is organized to protect and increase demand for beef and beef products through state, national and international beef promotion, research and education, thereby enhancing profit opportunities for Montana beef producers.
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About Author
The Montana Stockgrowers Association, a non-profit membership organization, has worked on behalf of Montana’s cattle ranching families since 1884. Our mission is to protect and enhance Montana ranch families’ ability to grow and deliver safe, healthy, environmentally wholesome beef to the world.