CBB seeks 'stay' on judge's halt of checkoff

By LORI COPE | East Texas Edition

July 4, 2002 -- While some beef organizations are applauding a judge's ruling that the Beef Checkoff Program is unconstitutional and the $1 per head checkoff cease on July 15, the Cattlemen's Beef Board is working to have those decisions reversed.

U.S. District Judge Charles B. Kornmann made the rulings June 21 on the legal challenge by Livestock Marketing Association, Western Organization of Resource Councils, and three individuals.

The Cattlemen's Beef Board (CBB) "has asked attorneys at the U.S. Department of Agriculture and U.S. Department of Justice to request a stay of the judge's injunction and begin the appeal process."

CBB oversees the collection of $1 per head on all cattle sold in the United States and $1 equivalent on imported cattle, beef and beef products. These checkoff revenues are used for promotion, education, and research programs to improve the marketing climate for beef.

State beef councils receive half of the checkoff dollars, which are controlled by producers within the state to promote and market beef and beef products.

Richard Wortham, Texas Beef Council vice president, said on June 28 that "they (CBB) are putting together the best case possible" which will hopefully make its way to the U.S. Appeals Court, soon.

Wortham explained that CBB will forward their request for a stay and an appeal to the U.S. Department of Agriculture. USDA makes the request to the U.S. Justice Department and Solicitor General, where a decision on the request is made.

CBB's Chief Operating Officer Monte Reese said on June 21 that the "USDA and Department of Justice have stood strong behind the checkoff program throughout this legal challenge."

"Once we get over those two things," Wortham continued, then the request is put on the U.S. Appeals Court docket.

Two things are to be considered - the appeal of the judge's decision that the Beef Checkoff Program is unconstitutional; and a request for a stay on the judge's decision that the checkoff dollars stop being collected on July 15.

If the stay is not granted, "every collection point" for the checkoff dollars will be affected, including sale barns, private treaty sales, the feedyard to packer sales, etc., according to Wortham.

If a stay is granted prior to July 15, the collections will continue. The appeal regarding the constitutionality of the checkoff program may or may not be decided by July 15.

On the other side of the issue, many are pleased with the judge's decisions.

National Farmers Union said it "echoes concerns" that are behind the judge's ruling. "Producers are forced to pay for activities that are contrary to their beliefs, and therefore, their First Amendment rights to free speech," said NFU President Dave Frederickson. "Many producers believe U.S. beef promotion, as opposed to the current generic promotion of beef, would serve them best."

Montana ranchers Steve and Jeanne Charter, who have been battling the beef checkoff since 1998, argue they shouldn't be required to pay because National Cattlemen's Beef Association (NCBA is the marketing organization and trade association which oversees activities financed by the beef checkoff) uses checkoff dollars to promote the checkoff itself, and to fund projects that promote corporate control of the beef industry.

"The NCBA uses millions of checkoff dollars to promote processed products for giant global companies like Sysco, Hormel, and Sara Lee. That's like forcing wheat farmers to pay to advertise Wheaties or potato farmers to advertise McDonald's french fries. It doesn't make sense," said Ms. Charter in a written statement issued during the checkoff battle.

Livestock Marketing Association pointed out that other agricultural fields are interested in the judge's decision as well. Attorney Benjamin F. Yale, representing dairy farmers, said his clients were "particularly pleased" the judge "addressed and directly refuted the notion that checkoff programs constitute government speech."

Groups battling the mandatory pork checkoff said the judge's decision will help their federal court fight to end the pork checkoff on similar grounds. That case is currently pending in federal district court in western Michigan.

The mandatory lamb checkoff began July 1. Livestock auction markets, commission firms, dealers, etc. must collect the funds but are generally exempt from remitting the assessment.

In conclusion, CBB pointed to an independent survey, released in January 2002, which noted 68 percent of producers said they approved the Beef Checkoff Program.