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The organization representing and promoting cattle producers in Minnesota wants to raise the $1 beef checkoff fee members pay per every head of cattle sold by 50 cents.
The beef checkoff fee hasn’t been raised since 1986 when Minnesota’s producers first started paying the $1 fee for every head of cattle they sell, but it may be a tough sell to farmers and ranchers amid a rocky agricultural economy.
Half of every dollar generated through the checkoff goes to the Minnesota Beef Council and the other half goes to the national Cattlemen’s Beef Board — the organization that oversees the collection of the National Beef Checkoff, which was established in the 1985 Farm Bill. Both nonprofits use the revenue to help fund advertising, marketing, public relations, education, research and product development aimed at increasing beef consumption at the state and national levels.
But lately, Minnesota State Cattlemen’s Association Executive Director Kaitlyn Root said the Minnesota Beef Council budget has been getting tighter. Her organization works in tandem with the council.
“Costs are just rising in every direction, and operating on that same budget since [1986] gets to be pretty tough,” Root said.
While beef prices remain high, cattle producers are also facing rising input costs of their own, a fact that might make farmers reluctant to support the proposal to pay higher checkoff fees.
“While [producers are] facing higher costs, some are being able to catch their breath due to record-hot cattle markets,” Root said. “We feel that producers recognize the work that the beef checkoff has done to increase the demand for beef.”
The National Beef Council reported that for every dollar collected through the national checkoff, about $13 is returned to producers in higher beef prices due to increased demand.
Root acknowledged that there’s never really a good time to propose a fee increase.
“You don't know how the market is going to change,” she said. “We can't predict things like that.”
A previous checkoff raise of $1 was rejected by producers over 10 years ago with 63 percent of voters in opposition. Root said she hopes her team learns from that failed effort.
“We just need to get in front of more producers and ensure that they know how the checkoff works and what programs the checkoff is used for,” she said. “That doesn't make us any more nervous. We would not be doing this if we didn't think that this was a good idea.”
One selling point is that the council is offering to make the fee increase refundable. Farmers and ranchers who raise cattle would be eligible to request a reimbursement of the additional 50 cents per head they paid.
Root said the Minnesota Beef Council will offer more details at a public hearing on Dec. 5 in St. Cloud. The deadline to request a ballot is Feb. 12.
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