Beef Board Faces Referendum Petition

November 22, 1999

The National Cattlemen's Beef Board is facing a probable referendum on its continued existence. Petitions calling for a checkoff referendum have been delivered to USDA. The board has made two recommended changes to the marketing and research order that are in the rule-making process at USDA.

"Our independent research, which we conduct twice annually, continues to indicate that two out of three producers still support the program," the board said in a statement. "We expect USDA to thoroughly review the petitions submitted to assure all beef producers that those who signed petitions were qualified cattlemen who knew what they were signing."

Earlier this month, the Livestock Marketing Association submitted to USDA signatures from about 146,000 producers seeking a vote on whether to continue the mandatory beef checkoff. "Given this overwhelming interest in a referendum, we are urging USDA to call for it without delay," said LMA President Jim Schaben Jr.

Schaben said the signatures were being submitted in two parts: the first part included signatures from 125,788 producers obtained from Sept. 1, 1998-Aug. 31, 1999, the period selected after USDA advised LMA in May that the association could submit the required signatures "for any 12 consecutive month period it chooses." The additional 20,000 or so signatures were outside the designated period but were submitted "to further demonstrate the extraordinary support" for a referendum, said Schaben.

The beef board argues that the checkoff program "continues to be fair, state-based, producer controlled, accountable and, most important, we believe it works for the industry." This fall fed cattle prices exceeded $71 per hundredweight. The board says one reason for that is that consumers are buying beef at steady to slightly higher prices despite record beef supplies. "The checkoff isn't responsible for all factors involved, but it acts as a catalyst for positive, long-term change."

In addition to changing how the beef checkoff is managed, says the board, a mandatory checkoff paid by packers on all cattle slaughter also has been suggested to appropriate separate industry organizations that may conduct lobbying efforts which the beef board cannot conduct.