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Structure and Responsibilities
The Beef Checkoff Structure and Responsibilities
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Beef Board Structure 100 Board members Nominated by producer organizations in each state & by importer groups Appointed by U.S. Secretary of Agriculture
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Where Checkoff Dollars Come From
$1 per head invested by about 750,000 beef, dairy & veal producers – $63.7 million $1-per-head equivalent invested by importers – $7.1 million $1 per head invested by producers in five states without beef councils – $185,000 These figures include the full dollar – the 50 cents to the Beef Board and the 50 cents to the state beef council. $1 per head invested by about 750,000 beef, dairy & veal producers – $63.9 million $1-per-head equivalent invested by importers – $8.3 million $1 per head invested by producers in five states without beef councils – $100,000 Let’s see how the money flows through the checkoff program… flip to next slide.
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Promoting Researching Educating Safeguarding
Dairy, Beef, Veal Producers Pay $1/head Importers Pay $1/head or equivalent Flow of Checkoff Dollars State Beef Councils Cattlemen’s Beef Board 50¢ 10 Federation of State Beef Councils, or direct to other SBCs or contractors. 10 50¢ Federation Operating Committee Beef, dairy and veal producers pay one dollar per head on each transaction directly to their Qualified State Beef Councils. Importers and producers in states without state beef councils pay one dollar directly to the Beef Board. State beef council boards vary in size but are always representative of the cattle industry in the state. The Beef Board includes 106 beef, dairy and veal producers, and importers who are nominated by producer organizations in their state and then appointed by the Secretary of Agriculture to be good stewards of your beef checkoff investment. The Beef Board sets the budget for and evaluates all national programs 50 cents of every dollar collected in the state is sent directly to the Cattlemen’s Beef Board for national programs. Of the 50 cents retained, producers on your state beef council board determine how it should be invested in local and state programs. That could include use in that state, investment in another state’s programming, or direct investment in a national program by sending funds directly to the contractor managing that program. Members of your state board also may decide to invest a portion of their 50 cents into national programs. This investment is watched over by producers chosen by their states to sit on the board of the Federation of State Beef Councils. Because the beef checkoff is a state and national program, the Beef Promotion Operating Committee was created by law to ‘bring the two halves of the dollar together’ into a coordinated program. The Operating Committee includes 10 Beef Board members and 10 producers selected by the Federation of State Beef Councils. The Operating Committee is responsible for approving checkoff programs and contracting with national industry-governed organizations to implement these programs. The Federation may also invest in national programs. Although this organization may seem complicated, it has been effective for more than two decades in promoting, researching, educating and safeguarding the beef industry. State Programs National Programs Promoting Researching Educating Safeguarding
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Who has Administrative Authority?
State Beef Councils Federation of State Beef Councils Cattlemen’s Beef Board Secretary of Agriculture (USDA)
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Beef Board Mission The Cattlemen’s Beef Promotion & Research Board is dedicated to improving producer profitability, expanding consumer demand for beef, and strengthening beef’s position in the marketplace.
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CBB Responsibilities Administer Beef Order Ensure funds collected are used for activities authorized under the Act & Order, including CBB, QSBCs, Federation and contractors Encourage coordination of programs Expand foreign and domestic markets for beef
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CBB Responsibilities Administer implementation of programs using established nonprofit industry organizations Evaluate programs Communicate results Maintain all records for inspection and audit by Secretary of Ag & external audit agency
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CBB Responsibilities Elect 10 representatives to Operating Committee
Review and submit CBB budgets to USDA for approval Receive or initiate, investigate and report to the Secretary violations of producer non-payment of checkoff assessment Recommend improvements to checkoff
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