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Texas Agriculture Archive

August 2, 2002

Stay granted in
beef checkoff injunction

The U.S. Court of Appeals of the 8th Circuit granted a request for stay by the Department of Justice (DOJ), on behalf of the U.S. Department of Agriculture, of the June 21, 2002 decision by the District Court in South Dakota that would have ceased collection of assessments under the Beef Checkoff Program.

The stay allowed the beef promotional program to continue without interruption while the appeal is pending.

The June 21 South Dakota decision ruled that the Beef Promotion and Research Act is unconstitutional and directed that the collection of assessments cease on July 15. The stay, however, postponed implementation of the South Dakota decision, and the beef promotion and research program will continue to operate and conduct operations as normal during the pendency of the appeal.

Defendants in the case include the U.S. Department of Agriculture, the Cattlemen's Beef Board, and Nebraska Cattlemen, leading a group of producers as interveners in the case. The suit was brought by the Livestock Marketing Association (LMA), the Western Organization of Resource Councils (WORC), and several individuals.

"We are pleased that the court recognized the importance of continuing the Beef Checkoff Program through the appeal process," said Beef Board Chairman Dee Lacey, a cow-calf producer from Paso Robles, Calif. "This will allow continuance of promotion efforts on behalf of beef producers during challenging market conditions."

During the appeal process, Lacey said, the Beef Board will continue—as it has throughout the course of this litigation—to work to strengthen the position of beef in the marketplace and expand uses for beef and beef products.

While this certainly is good news for those who support the Beef Checkoff Program, Lacey said, it is one step in what promises to be a lengthy court battle.

"It's definitely disappointing that industry resources continue to be diverted from beef marketing and promotion efforts to spend money and time in the courtroom instead. But this appeal is one more step forward in a lengthy battle, and we're in it for the long haul."

Farm Bureau support

Farm Bureau policy supports the beef checkoff and in fact, all checkoff programs, as long as they are producer controlled, said Jon Johnson, TFB associate director of commodity and regulatory activities.

Texas Farm Bureau has three representatives—Herff Conrelius, Hope Huffman and Pat McDowell—on the Cattleman's Beef Promotion and Research Board, which is responsible for using checkoff dollars to develop promotion, research and educational programs. The state's largest farm organization also has three additional representatives on the Texas Beef Council, state directors Regan Kirk and Dan Dierschke, and Huffman. The TBC directs checkoff funds that are kept in-state.

"Our policy says we support checkoff dollars," Johnson said. "We have Texas producers overseeing Texas dollars."

Johnson noted a greater danger in this particular case to commodity checkoff programs in general, citing the rationale that whichever side loses will take the case to the Supreme Court.

"All checkoffs are on the line here and there is a good possibility, since we just went through the mushroom checkoff ruling, and there have been challenges to all the checkoffs by producers, there's a concern that the Supreme Court could bring all checkoff programs under this case," he said.