Federal authorities are investigating the alleged embezzlement of $2.6 million dollars from an obscure Oklahoma board that promotes the beef industry. The investigation and related lawsuits add to questions about oversight of a national program funded by fees charged to ordinary farmers and ranchers....The Oklahoma City auction is one of the largest markets for young calves that aren’t quite old enough or fat enough to be slaughtered. The day’s haul was a good one: More than 10,000 head of cattle were sold off.
These large auctions and ones in much smaller sale barns across the country collectively take in about $80 million every year from a $1-per-head “check-off” fee paid every time ranchers and producers sell an animal. The check-off is administrated by the
Cattlemen’s Beef Promotion and Research Board, a network of 45 state-based boards and councils that collects the money to promote the beef industry...“It’s the misuse of the money for political purposes that’s caused
the problem,” says Muegge, a former Oklahoma state senator and member of
the
Organization for Competitive Markets, a small group that is critical of the checkoff program and beef board. Muegge says check-off money and beef boards have very little oversight, and he points to his own state as proof. In October, the Oklahoma Beef Council filed a civil lawsuit to
recover $2.6 million dollars it says was embezzled by a former
accounting and compliance officer. An internal audit obtained by
Harvest Public Media
suggests hundreds of thousands of dollars of ranchers’ money vanished
every year for seven years. Through attorneys, the former compliance
officer declined interview requests. There is no evidence the Oklahoma Beef Council used any checkoff money for illegal political activity. But Mike Callicrate, a cattleman who operates out of Colorado and Kansas and is a founding member of the Organization for Competitive Markets, says the investigation and lawsuit merit increased scrutiny of the national beef checkoff program. Over the years, a growing segment of the nation’s 700,000-plus ranchers have
complained that the federal checkoff program has ballooned into a billion-dollar cash cow for big ranchers and multinational meatpackers...The fight has moved from the cattle yard to the courtroom. The Organization for Competitive Markets is
suing to force the USDA to turn over records related to an audit of the checkoff program. The group suspects checkoff money has funded illegal political lobbying by the
National Cattlemen’s Beef Association,
which did not immediately respond to requests for comment. The
Colorado-based association represents the majority of farmers and
ranchers and has denied using checkoff money for political influence. Members of the Competitive Markets group are convinced their money is
being used against them. The lawsuit is due back in court in March, and
that’s when activists like Callicrate and Muegge hope they get a lot
more answers to their questions about how the beef checkoff money is
being spent...
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