Federation of State Beef Councils Moves to Increase National Funding

Federation of State Beef Councils Moves to Increase National Funding,
Support for Demand-Building Efforts in Large Population States

Increases in support for beef demand-building efforts were approved by directors of the Federation Division of the National Cattlemen’s Beef Association (NCBA) at the organization’s Board meeting held last week in conjunction with the 2011 Cattle Industry Summer Conference in Kissimmee, Fla. Additional funding will go to programs funded through the Beef Promotion Operating Committee (BPOC) and a special Federation Initiative Fund that channels money from states with large cattle populations to those with large consumer populations.

Federation directors voted to allocate $750,000 in expected surplus Federation funds to supplement the funding requests that will be considered by the BPOC in September. The BPOC determines national and international programs for building beef demand. The funds are invested by state beef councils and are in addition to a $5.13 million initial FY2012 investment approved by the Federation Executive Committee and Federation directors.

According to David Dick, a beef producer from Sedalia, Mo., and chairman of the NCBA Federation Division, the additional funds will be put to good use. “Matched with funds from the Cattlemen’s Beef Board (CBB), this money will support demand-building programs that benefit U.S. beef producers,” he said. “It’s important that we put the money where it will do the most good.”

In that spirit the Federation also approved $198,300 in spending on demand-building projects through its Federation Initiative Fund. A total of $246,550 had been requested from the fund by 10 state beef councils in large consumer population states. The fund is made possible by state beef councils that have more cattle than people

“Producers on state beef council boards across the country control half of the $1 mandatory national beef checkoff they collect,” said David Dick, a beef producer from Sedalia, Mo., and chairman of the NCBA Federation Division. “While most of that money is used for in-state demand-building programs, we’re also able to strengthen the national program and get other funds where they’re needed badly.”

The NCBA Federation Division represents the 45 Qualified State Beef Councils, and elects 10 members to the 20-member BPOC. The other 10 are elected by the CBB. The BPOC determines which projects and programs will be funded through the 50 cents of each checkoff dollar sent to the CBB.

Other Actions

Also at the Summer Conference, Federation directors heard more about progress made through a Charter they approved at their meeting in Denver in February. The Charter establishes that the Federation is independent within NCBA.

Among the steps taken since February have been the hiring of a senior staff member whose sole responsibility is Federation activities, and the hiring of a compliance officer who helps assure that time and expense controls of Beef Checkoff funds are properly implemented.

“As a committed partner with CBB, we want to make sure that we have 100 percent accountability,” said Dick. “At the same time, we value the synergies that our association with NCBA provide.”

At the event’s Federation Forum state beef council representatives presented ways the Federation was involved with programs taking place in their states. Staff from the Idaho Beef Council utilized Federation assistance in a state-initiated consumer promotion project, while the Nebraska Beef Council provided significant assistance in a nationally-developed Issues Management program in Nebraska.

“State beef councils and their staffs are key to the Federation’s success,” said Dick. “Not only do they financially support national Federation efforts, they directly participate in Checkoff-funded efforts taking place in their states. It’s a close relationship that works well.”

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The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

08.09.2011