LMA Now Seeks Unconstitutionality Ruling on Beef

July 23, 2001

The Livestock Marketing Association will amend its initial complaint seeking a beef checkoff referendum and ask for a judicial decision on whether the checkoff is unconstitutional. LMA said it took the action in response to a request from the South Dakota federal district court,

LMA and the other parties - USDA, the Cattlemen's Beef Board and the Nebraska Cattlemen's association - were asked to address the constitutionality of the beef checkoff in light of the recent U.S. Supreme Court decision in the mushroom checkoff case. In that decision, the Supreme Court ruled that forcing mushroom producers to pay for advertising is invalid under the First Amendment. The district court asked both sides for their views on that case, saying that if the beef checkoff is unconstitutional, it doesn't make sense to conduct a referendum. LMA will file its amended complaint soon.

"We believe that as a matter of law, the beef and mushroom checkoffs are alike," said LMA President Patrick Goggins. "A great deal of our money has been spent trying to get producers a simple vote on a program they finance. But we can't justify continuing to pour our members' money into a campaign for a vote, where there is now a substantial question whether the program is constitutional."

Goggins noted that when the mushroom checkoff case was before the Supreme Court, both USDA and the National Cattlemen's Beef Association, which joined in an "amicus curiae" brief, took the position that the mushroom decision would affect the future of the beef checkoff.

"That's the issue which we're now presenting to the South Dakota court," he said.

Lynn Cornwell, president of the National Cattlemen's Beef Association, said the organization was "disappointed that the Livestock Marketing Association is changing courtroom tactics, raising their lawsuit to a destructive new level by challenging the constitutionality of commodity checkoffs."

The differences between the mushroom program and the beef checkoff "are as significant as the difference between mushrooms and beef," Cornwell said. "LMA's action indicates their intent is to terminate all state and national commodity checkoffs, including beef. This is frustrating considering the beef checkoff is producing such great benefits for cattlemen."

Beef demand has increased nine out of the last 11 quarters, "and the checkoff has been a factor in the increase. It is unfortunate that LMA has decided to use precious industry resources to engage in negative legal battles instead of joining industry efforts to promote beef," Cornwell said.