Beef Checkoff

Cattlemen’s Beef Board Elects New Officers

Fri, 02 Feb 2024 17:20:09 GMT

Cattle producers Andy Bishop of Kentucky, Ryan Moorhouse of Texas and Dr. Cheryl DeVuyst of Oklahoma are the new leaders of the Cattlemen’s Beef Promotion & Research Board (CBB). This officer team is responsible for guiding the national Beef Checkoff throughout 2024.

Bishop, Moorhouse and DeVuyst were elected by their fellow Beef Board members during their Winter Meetings, held during the 2024 Cattle Industry Convention in Orlando, Florida. Bishop, the 2023 vice chair, will now serve as the CBB’s chair, while Moorhouse will transition from his role as the 2023 secretary-treasurer to become the 2024 vice chair. DeVuyst is the newest member of the officer team, taking on Moorhouse’s former responsibilities as secretary-treasurer.

(Farm Journal)

2024 Chair Andy Bishop and his wife Meagan of Cox’s Creek, Kentucky are raising their four children on their registered Angus seed stock operation, Fairfield Farm. Bishop began his career teaching agriculture and moved into the field of agriculture lending in 2007. Bishop is the former chair of the Kentucky Beef Council and the National Cattlemen’s Beef Association (NCBA) Young Cattlemen’s Conference. Bishop also served as a member of the Long Range Planning Task Force and as president of the National Cattlemen’s Beef Association’s (NCBA) Young Producers Council and the Kentucky Cattlemen’s Young Producers group.

“The beef industry is in a unique situation as 2024 gets underway,” Bishop said. “Producers have been dealing with adverse weather and production cost conditions over the past few years, leading to herd liquidation. While things do seem to be improving, the Beef Checkoff must continue to be vigilant, developing the right programs and messaging to keep beef demand high. I’m excited to lead the CBB as we navigate the opportunities and challenges this year sends our way.”

(Farm Journal)

Vice Chair Moorhouse grew up in North Central Texas on his family’s cow/calf and stocker operation. After graduating from Texas A & M University, Moorhouse went to work for Continental Grain Cattle Feeding (now Five Rivers). He currently serves as the general manager for Hartley Feeders, a Five Rivers Cattle Feeding operation. A resident of Amarillo, Texas, Moorhouse, his wife Colette and their two sons also operate a stocker operation back home on part of the family ranch.

Dr. Cheryl DeVuyst and her husband, Eric, own DeVuyst Ranch, a cow-calf and stocker operation. DeVuyst is also a professor of agricultural economics at Oklahoma State University and head of its Ag Econ department. DeVuyst is involved with numerous agricultural organizations, including Oklahoma CattleWomen, Oklahoma Cattlemen’s Association, National Cattlemen’s Beef Association (NCBA), Oklahoma Farm Bureau, Pawnee County CattleWomen, Agricultural and Applied Economics Association and American National CattleWomen. She’s also a faculty advisor for the Oklahoma Collegiate CattleWomen and is a past board member of the Western Agricultural Economics Association.

(Farm Journal)

“Our CBB members and staff are incredibly fortunate to have three strong beef industry leaders and advocates like Andy, Ryan and Cheryl at the helm of this organization,” said Greg Hanes, CEO of the Cattlemen’s Beef Board. “Each has unique experience and perspective to share, representing producers from across the U.S. As we begin our journey through 2024, I’m looking forward to working with this leadership team to launch programs and initiatives that drive beef demand and benefit producers nationwide.”

To learn more about the Beef Checkoff and its programs, including promotion, research, foreign marketing, industry information, consumer information and safety, visit DrivingDemandForBeef.com .

Hanes: The Beef Checkoff and Lab-Grown Protein

Fri, 10 Mar 2023 23:07:43 GMT

As the fortunes of “plant-based meat” companies appear to be in decline recently, another competitor to beef raised on farms and ranches is starting to garner more headlines. “Lab-grown” or “cell-cultured meat” seems to be popping up here and there. Seeing these articles, some producers have expressed concern to me that the Beef Checkoff may begin to promote this “lab-grown” protein.

Based on the law, my answer to them is always the same – no way!

Regardless of how these lab-grown products will be categorized, the Beef Checkoff will not be promoting them. Why? It all goes back to the federal law that created and controls the Beef Checkoff. In this law, called the Beef Promotion and Research Act (the Act), there are very clear definitions relative to the Checkoff program and what it can and can’t do.

The Act specifically defines three important terms: “beef”, “beef products”, and “cattle”:

· Definition #1: “beef” as “flesh from cattle”

· Definition #2: “Beef products” are “edible products produced in whole or in part from beef”

· Definition #3: “cattle” are defined as “live domesticated bovine animals”

The Act goes on to note that the Beef Checkoff can only be used for promotion, advertising, research and consumer and industry information programs, focused solely on “beef and beef products,” and to support the beef industry.

These definitions for both beef and beef products as coming directly from the flesh of cattle (and cattle are live animals) are key, as lab-grown protein does not meet these established descriptions. In addition, no Checkoff dollars will be collected from any of these cell-based products. Checkoff assessments are based on live cattle, or imported beef and beef products, originating from live cattle. There are no provisions in the federal Checkoff law to collect dollars from lab-grown meat to be used in our program.

Keep in mind there is one more check and balance to ensure no Beef Checkoff dollars are spent promoting a product that does not generate assessments on behalf of the Checkoff program. According to The Act, any programs funded by national Beef Checkoff dollars must be approved by the Beef Promotion Operating Committee (BPOC), comprised of “cattle producers and importers”. Non- assessment payers are not eligible to become CBB Board or BPOC members and would not make these important funding decisions.

We stand by those who pay into our longstanding program and will continue to take our legal and fiduciary responsibilities in upholding the law with the same continued commitment we use every day - now and in the future.

Beef Checkoff Value Continues To Grow

Fri, 20 Nov 2020 05:50:26 GMT

Each $1 invested in the national beef checkoff returns $11.91 to producer profits. That’s the conclusion of new research conducted by a Cornell University economics professor funded by the Cattlemen’s Beef Board (CBB).

With a return of nearly $12 in incremental net revenue, the program is “clearly a very profitable venture, way more than the cost of the program,” says Harry M. Kaiser, a Gellert Family Professor of Applied Economics and Management at Cornell University.

Kaiser conducted the economic study in fiscal year 2019 to measure the return on beef producers’ and importers’ investments into the national portion of the Beef Checkoff program over the past five years (2014-2018).

The study, “An Economic Analysis of the Cattlemen’s Beef Promotion and Research Board Demand-Enhancing Programs,” found had there not been any domestic CBB demand-enhancing activities over the latest 5-year period, total domestic beef demand would have been 14.3% lower than actual.

Similarly, had there not been any CBB contribution to Foreign Agricultural Service (FAS) and U.S. Meat Export Federation’s (USMEF) foreign market development programs over the past 5 years, U.S. beef export demand would have been 5.5% lower than actual in the eight foreign markets studied.

Kaiser said his research suggests the beef checkoff, at roughly 12 to 1, is performing well compared to other commodity checkoffs. He examined 44 past studies which show the median benefit-cost ratio of other checkoffs is about 6-1 to 6.5-1.

Kaiser’s study only pertains to the funds collected for the national Beef Checkoff program. It did not account for the portion of funds retained by the qualified state beef councils for the state-level efforts.

Related stories:

Checkoff’s Long Legal Journey

Cattle Groups Support Proposed Beef Checkoff Change

Fri, 20 Nov 2020 05:34:58 GMT

The U.S. Department of Agriculture’s Agricultural Marketing Service is proposing to expand the contracting authority for the Beef Promotion and Research Program.

The Beef Promotion and Research Act requires that the Beef Promotion Operating Committee enter into contracts with established national non-profit industry-governed organizations. The Beef Promotion and Research Order adds an additional requirement that the organization or its successor must have been active and ongoing prior to 1986.

With the goal of enhancing the overall success and support of the Beef Checkoff Program, several beef industry organizations met recently and agreed that it was necessary to expand the contracting authority established under the Act and Order to uphold the integrity of the Beef Checkoff Program. The proposed rule would eliminate the date requirement so that organizations otherwise qualified but created since 1986 could be eligible to contract with the Beef Board.

Cattle groups are in favor of the change. The National Farmers Union (NFU) and the U.S. Cattlemen’s Association (USCA) fully support the proposed amendment to expand beef checkoff contracting authority under the Beef Promotion and Research Order. USCA President Jon Wooster says his organization will be filing comments supporting the proposed change, and he encourages all cattle groups to do so as well.

“USCA is very pleased with USDA’s responsiveness on this matter and we appreciate the agency’s efforts to enhance the overall beef checkoff. While this amendment, and what it will accomplish, is certainly a step in the right direction, we also know that there is more work to be done to increase support for the checkoff among its stakeholders. USCA looks forward to being the catalyst for further change in the program in order to ensure the checkoff’s credibility, transparency, accountability, and that all producers have a voice in how their checkoff dollars are invested,” said Wooster.

Today, March 14, the National Cattlemen’s Beef Association (NCBA) submitted comments on the proposed rule pertaining to the Beef Checkoff Program. NCBA President J.D. Alexander said the rule is good for the industry and good for the checkoff. He said the proposed rule would ensure cattlemen are getting the best return on their investment.

“NCBA supports an open and transparent checkoff program that is producer driven. This proposed rule would simply enhance this quest,” said Alexander. “We support a competitive checkoff contracting system that ensures producers are getting the absolute best return on their investment. We believe a multitude of ideas coming from several different organizations will enhance creativity and innovation regarding techniques to build and defend beef demand. Along with ideas, contractors must come to the table with the know-how and the resources to transform ideas into reality.”

Independent research [LINK] conducted by the Cattlemen’s Beef Board released in January 2012 shows that beef producer support for the checkoff is higher than it has been in 18 years. Seventy-six percent of producers support the checkoff. These producers say the checkoff “influences beef demand, contributes to their profitability and represents their interests.” Four of five producers say that the beef checkoff is of value to them and two of three believe it is well managed. Alexander said the proposed rule will likely escalate producer confidence in the checkoff.

Detail of the proposed changes appeared in the March 2, 2012 Federal Register. Comments are due by May 1, 2012. Comments may be submitted online at www.regulations.gov

Trusteed IRAs: why they are popular, who should consider them, what benefits they offer

Fri, 23 Sep 2022 20:01:45 GMT

Q: I’ve heard a lot about trusteed IRAs. How do they differ from traditional IRAs?

A: Simply put, trusteed IRAs offer potential tax benefits of traditional or Roth IRAs with the protection and control of a trust. They provide tax advantages that stretch into the future and offer the ability to control how, when and in what amounts assets are distributed. Trusteed IRAs have become more popular given some of the inherent limits of traditional IRAs and the growing prevalence of self-directed retirement accounts combined with the decline of pension plans. They also are more cost-effective than setting up a trust and are generally more compliant with tax laws.

Q: Who should consider a trusteed IRA?

A: There are several reasons why someone should consider a trusteed IRA, the most consequential of which is if an owner has an interest in controlling assets and realizing tax benefits beyond their lifetime. This can mean an owner is concerned with the financial discipline or sophistication of heirs.

Other reasons include if an owner remarries and wants to provide for a current spouse as well as children from a previous relationship and/or is concerned about IRA management in the event of incapacitation.

Q: I’m in the middle of estate planning. How can a trusteed IRA help with the process?

A: They can help process if only to preserve the potential tax-advantaged accumulation of IRA benefits to pass on to heirs. Under traditional or custodial IRAs, a beneficiary is required to withdraw at least the Required Minimum Distribution (RMD) each year. However, a beneficiary may withdraw additional amounts, for any reason, at any time—and incur possible fees or tax penalties.

Additionally, owners can restrict payouts to a beneficiary to the RMD, enabling it to operate as a spendthrift trust. At the owner’s death, the trusteed IRA would be automatically split into separate accounts for individual beneficiaries, with distribution terms defined for each account.

Another benefit is that estate plans don’t need to be rewritten or updated; trusteed IRAs can be added independent of an estate plan to protect IRA assets which legally pass outside of wills.

Q: Is a trusteed IRA better suited to farmers or owners of farm assets?

A: Not expressly, but a trusteed IRA can play an important role in legacy planning and preservation of farm assets over multiple generations. Given the growing generation gap among farming families, trusteed IRAs could be a way help preserve farm family values over generations from beyond the grave. Moreover, as farm economics continues to change, farmers may find value in the highly customizable nature of trusteed IRAs. In the event of a divorce in the family, for example, assets can be made to not leave the family’s bloodlines.

Q: Are there any downsides to trusteed IRAs?

A: Given that a trusteed IRA requires a corporate trustee, it’s harder to change ownership and family members cannot be named as trustees. Not all financial institutions offer trusteed IRAs so they may not be widely available to interested clients. Additionally, while they offer greater customization and more control, trusteed IRAs carry some limits. To have the highest level of customization and control, a trust would need to be created.

Please send questions, comments or requests to address a topic or issue to Rees Mason at rees.mason@ml.com.