ISSUES POLICY
A Dollar Investment Generates Five-Fold Return By Richard Thorpe, TSCRA fi rst vice-president
I
’M NOT JUST A RANCHER. LIKE ALL OF YOU, I AM A BUSINESS- man with the goal to deliver the safest, most afford- able and delicious beef to consumers everywhere.
Like any good businessman working to increase de- mand for my product, I understand that solid market- ing tools help reach and entice consumers, domesti- cally and internationally. Most of you have the same or similar goals. Thankfully, in the U.S., we have a beef checkoff
program that allows our industry to collectively and proactively invest in our own businesses. The checkoff is a producer-funded marketing and research program designed to increase domestic and/or international demand for beef. When we pay our $1 per head into the checkoff, we help to increase beef demand through promotion, research, education and a variety of other marketing tools. We all know we pay into the checkoff, but we don’t
always know where this money goes or how it’s ben- efi ting our bottom lines. I’d like to help answer some of the most common questions regarding the checkoff, so each of you can be confi dent that your investment is working for you.
How are checkoff dollars used? As mandated by law, checkoff dollars must be in-
vested in programs to increase consumer demand for beef and to create opportunities to enhance producer profi tability. The act defi nes 6 program categories: promotion, research, consumer information, industry information, foreign marketing and producer commu- nications. Of the $1 national checkoff, 50 cents stays in Texas and 50 cents goes to the Cattlemen’s Beef Board.
Who decides how checkoff dollars are spent? The Texas Beef Council decides how Texas money is spent. They prioritize checkoff funds to ensure every
76 The Cattleman January 2014 dollar benefi ts the Texas cattle industry.
Who serves on the Texas Beef Council? Texas beef producers serve on the council. The
Texas Beef Council consists of 20 members who are nominated by certifi ed nominating organizations, like TSCRA, and then elected by the current board. Mem- bers can serve up to 6 1-year terms. A new board is chosen every year. Certifi ed organizations include TSCRA, Texas Farm
Bureau, Texas Cattle Feeders Association, Independent Cattlemen’s Association of Texas, Texas CattleWomen, Dairy (as a group), Purebred (as a group), Livestock Markets (as a group), Packers (as a group), and At- Large members. Board members serve without pay.
Who benefi ts from the beef checkoff? Producers benefi t from the checkoff. The funda-
mental goal of every checkoff program is to increase commodity demand, thereby increasing the potential long-term economic growth of all sectors of the industry. The overwhelming majority of beef and dairy produc- ers say their beef checkoff has value for them in many ways , according to a Beef Producer Attitude Survey. • Four in 5 producers say the beef checkoff infl u- ences beef demand and is of value to them even in a weak economy.
• Three in 4 producers say the beef checkoff contrib- utes to the profi tability of their operations, is there for them in a crisis and represents their interests.
• Two in 3 beef producers believe the checkoff is well managed.
How do I know I’m getting a good return on my $1 checkoff investment? A 2009 University of Florida study showed that for
every $1 invested by producers into the beef checkoff, the industry had a return of $5.55. That’s real added
thecattlemanmagazine.com
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