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February 16, 2001

Checkoff gives cowmen net gain

The average dollar spent through the beef checkoff generated a $5.67 net gain to cattlemen, according to an independent peer-reviewed study conducted by Ronald W. Ward, an economics professor from the University of Florida. Ward's analysis evaluated impacts of beef checkoff programs from 1987 through the first quarter of 2000. The study was funded by, but conducted independently from, the Cattlemen's Beef Board.

Ward's analysis predicted that cattlemens' receipts increased $6.46 billion over receipts that would have existed without the checkoff. The analysis predicted total cattle producer revenues would be $321.18 billion during 1987 through the first quarter of 2000. Those revenues were estimated to have been $314.72 billion without checkoff expenditures, leaving $6.46 billion of increased revenue to producers that can be attributed to checkoff activities.

From 1987 through 2000, beef checkoff assessments totaled $968 million (less than three-tenths of one percent of producer revenues during the same period).

At the national level, the Cattlemen's Beef Board has spent $337 million on promotion programs and another $100 million on consumer information and industry information programs as defined in the Beef Promotion and Research Act. These expenditure levels were for programs within the United States and do not include checkoff expenditures for foreign market development.