Monday, August 02, 2010

Cattle industry conflict threatens checkoff and leadership

USDA has also given closer examination to the expenditures of the beef checkoff and the relationship between NCBA, Cattlemen's Beef Board and state beef councils. The audit just released by CBB has identified infractions that may have been overlooked by friendlier administrations but are now getting public recognition through the Office of the Secretary; this is threatening the keepers of the checkoff funds. Now we fray another strand of this rope. I quote from Ron Hays' Oklahoma Farm Report from July 26: "The Cattlemen's Beef Board has just released a Compliance Review of their major contractor for beef checkoff programs--the National Cattlemen's Beef Association. The audit comes just ahead of the Summer Conference of the Cattle Industry that will be held in Denver this week--and the CPA firm that conducted the audit for CBB, Clifton Gunderson, appeared to detect a pattern of problems with adequate documentation to prove many expenses were properly allocated to the checkoff overhead that NCBA is allowed to claim as a contractor." The allegations include lack of documentation of expenses and unallowable spouse travel to New Zealand for a cattle conference. NCBA has surely figured out that it has lost its clout with USDA and has always had to endure R-CALF USA, but now the source of the thirst-quenching waters of the checkoff fund is questioning consumption by NCBA, the largest contractor. NCBA executives have to know that when people are out to get you, they head for the money. Following the money by auditing expenses tells a story of the actions and attitudes of the players and undermines confidence within the industry...more

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