All About The Beef Checkoff

The Creation of the Checkoff

Congress created the checkoff as a producer directed promotion, research and information program with passage of the 1985 Farm Bill. It was approved in 1988 by 79 percent of beef producers in a referendum after grassroots input shaped the program. In February 2001, a Producer Attitude Survey conducted by Aspen Research showed that 65 percent of cattlemen approve of the checkoff. The structure of the checkoff program is based on the following directives:

All producers and importers pay the same $1-per-head.
One-half of the money collected by state beef councils – 50 cents of every dollar – is controlled by producers in the state.
All national checkoff-funded programs are budgeted and evaluated by the Beef Board, an independent organization of 110 checkoff-paying volunteers.
Beef Board members are nominated by fellow state producers.

Creation of the Checkoff in Arkansas

The Arkansas Beef Council was established by Act 160 of the 1983 General Assembly to provide cattle producers a program for the improvement of the cattle industry. The initial enabling legislation established a producer-paid assessment of twenty-five cents per head on all cattle sold in Arkansas. A producer referendum was held and producers overwhelmingly ratified the proposed the 25-cent per head program. Subsequently, Act 3 of 1987 provided for compliance of the state program with a new national per-head assessment program of $1.00 per head. Collections of the dollar began in the fall of 1987. In 1988 a nation-wide producer referendum was held concerning the national $1.00 per head program. Again, producers approved the program by a significant majority.

What can the checkoff do?

The beef checkoff acts as a catalyst for change. The checkoff doesn’t own cattle, packing plants or retail outlets. It can’t single-handedly turn around a bad market. The beef checkoff program was designed to stimulate others to sell more beef and stimulate consumers to buy more beef. This can be done through such initiatives as consumer advertising, marketing partnerships, public relations, education and new product development.

What can’t the checkoff do?

By law, checkoff funds cannot be used to influence government policy or action, including lobbying.

Where Checkoff Dollars Are Invested?

Promotion

Encompasses retail and foodservice programs, consumer advertising, health and nutrition activities, education activities, and public relations designed to stimulate the sale of beef in the marketplace.

Research

Provides the foundation for checkoff-funded activity. Information and promotion projects are developed based on consumer, nutrition, beef safety and product enhancement research.

Consumer Information

Efforts to enhance beef’s image through nutritional data and other positive messages targeted to news media, food editors, teachers, dietitians, physicians and other influential groups.

Industry Information

Efforts to promote an understanding of the beef industry and maintain a positive marketing climate by helping to manage misleading publicity concerning food safety, environmental and animal welfare issues.

Foreign Marketing

Seeks to identify and develop international markets for U.S. beef and beef variety meats.

Producer Communications

Efforts to inform beef producers about how checkoff dollars are being invested and communicating program results.

The Checkoff Starts Here in Arkansas

The beef checkoff process starts at the state level where under the law, one dollar is collected on each head of cattle and calves sold. Fifty cents automatically goes to the Beef Board and 50 cents stays in the state of Arkansas.

Seven producers sit on the Arkansas Beef Council board and play a key role in directing state programs. These board members determine how their 50 cents is invested at the local level in programs designated by the Beef Promotion and Research Act. Funds kept in the state may also be invested in national and international programs.