Cattle owners required to support research |

Cattle owners required to support research

Producers must pay $1 to the State Beef Council for each bovine sold

Diane Prather

Under the Beef Promotion and Research Act, cattle producers must pay $1 to the State Beef Council for every bovine sold.

According to information on the Cattlemen’s Beef Board Web site, “By law, all producers selling cattle or calves, for any reason and regardless of age or sex, must pay one dollar-per-head to support beef/veal promotion, research and information through the Beef Promotion and Research Act.”

The collection of the dollar-per-head is referred to as the Beef Checkoff.

The Cattlemen’s Beef Board consists of 104 members that are domestic beef producers and importers of beef and beef products. It’s the CBB that oversees the collection of a dollar-per-head on all cattle sold in the United States and a dollar equivalent on imported cattle, beef and beef products.

Information on the Colorado Beef Council Web site states, “The State Beef Councils, or SBC, may retain up to 50 cents of the money collected in their state, but at least 50 cents must be sent to the CBB. The entire dollar is remitted to the CBB from assessment in Non-CBC states and from imports.”

According to the specifics of the National Beef Promotion Act and Order, “no producer is exempt from the checkoff.”

In addition, “the buyer is generally responsible for the collection of a dollar-a-head from the seller. By law, both buyer and seller are equally liable to see that a dollar-per-head has been collected and paid.

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“Persons in non-compliance with the Act and Order are subject to a civil penalty of up to $5,500 per transaction, plus unremitted check of dollars and interest.”

Among others, collection points for checkoff dollars include: auction markets, feedyards, dealers/order buyers and banks.

Nita Howard, Checkoff Collection and Compliance Director for the Colorado Beef Council, explained, “All private treaty change of ownership must be approved by the local Brand Department Inspector.”

The local Brand Inspector collects the checkoff dollars at the time of inspection.

Tami Arnold, Director of Marketing for the Colorado Beef Council, said, “The Cattlemen’s Beef Board directs large national programs. Each state has its own beef council to direct the statewide programs.”

She added that some states do not have beef councils. A few of these states include Connecticut, Alaska and Rhode Island.

Arnold explained there was a meeting with all state beef councils in Denver last week. The Cattlemen’s Beef Board rolled out the national program plans for Oct. 1 through Sept. 30, 2009.

“Then we can roll out plans for the state level,” Arnold said. “It is interesting to see the different state beef council programs/ideas that might give us the opportunity to roll out the same types of programs in our state.”

The national Beef Checkoff is an industry-funded generic marketing and research program designed to increase domestic and/or international demand for beef.

Of the dollar-per-head collected, 50 cents goes to state programs carried out by the beef council.

Next week: Specifics as to programs carried out through the Colorado Beef Council.