Cattlemen’s Beef Board CBB Improvement Recommendations

Cattlemen’s Beef BoardCattlemen’s Beef BoardCBB Improvement RecommendationsCBB Improvement Recommendations

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Checkoff ImprovementsA1. Increase Assessment Rate:

Increase the assessment rate from $1 per head to $2 per head per transaction with producer approval in a referendum.Provide CBB with authority to increase assessment in increments to a maximum of $3 per head with the Secretary’s approval, and producer approval, in a referendum. Any assessment will be shared equally by CBB and state beef councils.

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Why An Increase Is Recommended

Collecting same $1-per-head since beginning of national checkoff, in 1986. Equivalency today would require $2.40 - $2.50.

Plus, decline of about 20 percent in Beef Board budget between Fiscal Year 2007 and Fiscal Year 2010 – from more about $53.2 million to about $42.3 million.

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Checkoff Improvements

A2. Assessment Exemption:Exempt from the assessment any transaction in which an animal is sold for $50 or less.

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Checkoff Improvements

A3. Additional Referenda:Provide beef producers with the opportunity every seven years for additional referenda on the Beef Checkoff Program.

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Checkoff Improvements

A4. Expand Contracting Authority:Allow any national non-profit industry-governed organization to contract with the Beef Promotion Operating Committee.

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Checkoff Improvements

A5. Contracting authority to address payment issues:Authorize the Beef Board to pay invoices from subcontractors for services delivered after approval by the primary contractor.

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Checkoff Improvements

A6. Allow Regional Beef Councils:Allow qualified beef councils to be organized on a regional basis, with only one beef council per state or region.

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Checkoff Improvements

A7. Eligible Nominating Organizations:Revise the eligibility criteria for organizations to nominate producers to serve on the Beef Board.

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Checkoff Improvements

A8. Extend Officer Terms:Extend the term of a Beef Board officer, past the end of the officer's second consecutive term, when elected as an officer by the Cattlemen's Beef Board.

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Checkoff Improvements

A9. Enforcement Capabilities:Enhance the Beef Board’s ability to enforce the collection of assessments by allowing the Beef Board to employ legal counsel to enforce collections.

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So Where Do We Go From Here?CBB approved recommendations for improvements to the checkoff at convention in January after review of 359 suggestions from 66 organizations and individual producers

CBB cannot lobby for these changes, this is the role of other industry organizations

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