Selling beef and dairy cattle in the U.S. comes with a $1 per head checkoff fee.
Commercial operations factor it in as a cost of doing business, but the $1 fee also applies to 4-H and FFA members selling their cattle at county or state fairs– a familiar thing around the country this time of year.
However, Agricultural Law Professor at Washburn University Roger McEowen wonders if that’s the right thing to do.
“The Beef Checkoff ensures all beef producers contribute equally to the industry’s promotion and development. Funds raised even from small-scale or one-time sales help finance marketing campaigns, nutrition research, and efforts to expand beef’s market share. To the surprise of some, the checkoff includes 4H and FFA sales. But should it? Critics claim that applying the checkoff to county fairs and youth sales is misguided and unfair. These animals are often sold in charity-style auctions where buyers overpay to support local youth, and not to make a profit. Forcing young participants to surrender part of their proceeds seems punitive, especially when they may only sell one or two animals a year. Additionally, many argue that these sales don’t benefit directly from national marketing efforts that the checkoff supports. As a result, some states have pursued refunds or exemptions for youth sales, but policies vary among states. Ultimately, applying the Beef Checkoff to youth sales raises a fundamental question of whether an industry-funded program should treat young first-time participants the same as commercial operations. The rules allow it, but should they?”
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