Cattlemen Support Stay Request

July 10, 2002

The National Cattlemen's Beef Association (NCBA) says it is pleased with the announcement by the U.S. Department of Justice that it has asked for a stay on the injunction prohibiting the collection of checkoff assessments after July 15. The stay, if granted, would allow collections to continue while the Department of Justice appeals Judge Charles Kornmann's June 21 ruling finding the beef checkoff unconstitutional.

"This is good news to cattle producers," according to NCBA President Wythe Willey, an Iowa beef producer. The Justice Department filed its motion for a stay of the injunction with the Eighth Circuit Court of Appeals, based in Minneapolis. In addition, the Nebraska Cattlemen, an organization that intervened as parties before the trial court, also have decided to appeal the trial court decision up to the Eighth Circuit.

In its action, the Department of Justice moved for a full stay pending appeal, or a temporary stay pending consideration of the stay, in addition to an order establishing an expedited briefing and oral argument schedule. The Department asked for a decision on the stay by July 11. On June 21, U.S. District Court Judge Kornmann in South Dakota ruled that the Beef Promotion and Research Act is unconstitutional and ordered a halt to checkoff collections starting July 15.

The lawsuit challenging the constitutionality of the beef checkoff was launched by the Livestock Marketing Association, the Western Organization of Resource Councils and several other plaintiffs. If the Justice Department's motion for a stay on the trial court's injunction on collections is granted by the Eighth Circuit Court of Appeals, the $1-per-head beef checkoff assessment will continue to be collected past the July 15 deadline and will continue to be assessed throughout the appeal process.

"There is an incredibly strong case in support of the constitutionality of the beef checkoff, and in support of its value to American producers as a mechanism for boosting beef demand," said Willey. "It makes sense that a higher court would want to re-examine the drastic court decision that sought to overturn it. We are confident the South Dakota ruling will be overturned and that beef producers will be allowed to continue the self-help beef promotion program…"