BEEF CHECKOFF

Beef Ad Fees Are Upheld The U.S. Supreme Court upheld the cattle industry fees that fund the ``Beef: It's What's for Dinner'' advertising campaign, rejecting arguments the program violates constitutionally protected speech rights. The justices today said the mandatory $1-per-head assessments on cattle pay for a valid program of ``government speech,'' directed by the Agriculture Department. The 6-3 ruling set aside an appeals court decision, returning the case to the lower court to consider other arguments against the fees. The decision bolsters the legal case for a similar pork- industry program, which a lower court had declared unconstitutional, as well as promotion fees assessed on milk, eggs, cotton and soybeans. Altogether, producers in 17 industries paid $693.2 million in mandatory fees in 2003. In the $170 billion beef business alone, producers and importers paid $83.6 million in ``checkoff'' fees during fiscal 2003. The money goes toward research and education in addition to promotion....
NCBA says decision in favor of checkoff was expected Jim McAdams, president of the National Cattlemen's Beef Association (NCBA) says the group is "elated" that the US Supreme Court has ruled the Beef Checkoff Program constitutional, overturning an appeals court ruling that found the federal Beef Promotion and Research Act in violation of the First Amendment. "Throughout the lengthy litigation process, we believed in the merits of our case and the merits of the Beef Checkoff. We anticipated a positive decision. This is a victory for all producers who want demand-building efforts in beef safety, nutrition and promotion continued. "It is time now for industry groups to put aside their differences and move forward together," McAdams said. After the Supreme Court agreed to hear the case, Veneman v. Livestock Marketing Association, 113 state and national beef industry and general agriculture organizations signed a friend-of-the-court amicus brief in support of the checkoff....
NFU: Supreme Court Beef Checkoff Decision Surprising and Disappointing National Farmers Union President Dave Frederickson made the following statement regarding today's Supreme Court Ruling: "Monday's U.S. Supreme Court’s ruling by a 6 to 3 vote to uphold the beef checkoff program is both surprising and disappointing. The ruling is surprising because the Court ruled the mandatory beef checkoff program is a U.S. government program and the Constitution’s First Amendment free speech rights of producers funding the program do not apply. This contradicts mandatory checkoff proponents’ arguments that the program is run and controlled by the producers....
OCM: Checkoff Decision Violates Democracy – Funding Meat Packer/NCBA Lobby The Organization for Competitive Markets (OCM) expressed its disappointment with the Supreme Court’s ruling the beef checkoff is a mandatory tax which does not violate the U.S. Constitution. Justice Antonin Scalia’s opinion rejected the argument the mandatory checkoff is forced speech compelling all producers to support to the meat packer/NCBA message. Rather, he found the program a “compelled subsidy.” “This is a sad day for liberty and democracy,” said Keith Mudd, OCM president. “U.S. cattle producers were told to vote for checkoff implementation because it was a self help program with no government control. When the program was taken over by the meat packer/importer interests, USDA denied producers a vote in a petition drive. Now the Supreme Court says the program is no different than any other tax, or any other government program.”....
AFBF Statement “We are happy the Supreme Court supported the beef checkoff and that the checkoff will continue to play a vital role in promoting beef consumption, as well as defending the beef industry from food safety and nutrition challenges. It was a six-to-three decision handed down by the Supreme Court that affirmed the federal beef checkoff program will remain in effect. We will be analyzing the ruling further, but we see it as a win for farmers and ranchers. “Farm Bureau policy supports commodity checkoff programs, and the beef checkoff court ruling strengthens other commodity checkoff programs endorsed by Farm Bureau members....
LMA Statement “We are deeply disappointed in the Court’s decision. Given the two strong decisions supporting our position, from the federal district court and the court of appeals, we had high hopes the Supreme Court would have decided otherwise. “However, we respect the legal system and the Court’s deliberations in this case, and we reluctantly accept their decision and will move on from here. “LMA started this effort to give America’s producers greater say over how their checkoff dollars would be spent, and by whom. We hope that message will not be lost with the U.S. Department of Agriculture, the Cattlemen’s Beef Board and other beef industry leaders. We hope they try and become more inclusive of differing views, and make sure that producers large and small, and from every sector, have a greater voice in checkoff affairs....
USDA "I am extremely pleased that the U.S. Supreme Court overturned the lower courts' decisions and ruled in favor of the Beef Checkoff Program," said Agriculture Secretary Mike Johanns. "This is certainly a win for the many producers who recognize the power of pooled resources. As this administration has always contended, USDA regards such programs, when properly administered, as effective tools for market enhancement." As a result of this decision, the Beef Checkoff Program will continue without interruption. USDA is reviewing this decision to determine its implications for other first amendment challenges to checkoff programs....

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