Monday, January 19, 2015

Ranchers take on the beef industry over mandatory checkoff payments - video

From their small farms set in the rolling hills of northeast Kansas, two ranchers are raising a few cattle — and a lot of Cain. David Pfrang and Jim Dobbins turned themselves into activists, launched a mirror corporation, got hauled into federal court and had to hire a lawyer. All over $1. That buck, though, divides the beef industry. And it may influence what you decide to have for dinner. The federal “beef checkoff” mandates a rancher or feedlot pay $1 every time a head of cattle is sold. That adds up to about $80 million a year nationwide, money that is supposed to be used to convince us to buy more beef. Nobody in the beef industry argues much about that idea. Checkoff officials say a recent study calculated that every dollar collected by the checkoff delivers $11.20 in return. Among its successes is a series of iconic commercials called “Beef, it’s what’s for dinner.” But that $1 assessment, critics like Pfrang and Dobbins say, flows to state and national lobbying groups that work against them. Sellers must pay even if they don’t believe they have any say over who gets the money, or why. And they must pay even if they believe the fund advances the interests of multimillionaire ranchers against their own. “We just lost some freedom and we’re not being represented,” Pfrang said. As many as a fourth of the nation’s 730,000 ranchers — mostly small independent farmers — say that the checkoff has become a billion-dollar bonanza for big ranchers, industry executives and giant beef packers. Their complaints have taken on new urgency with efforts to double the checkoff...more

KCPT video:

http://youtu.be/1m_oBzdyM8o

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