South Dakota Checkoff Dollars Meeting Need

PIERRE (February 15, 2008)—South Dakota Beef Checkoff dollars will be promoting beef to consumers in high-population states through a special program of the Federation of State Beef Councils (FSBC).
          The Federation Initiative Fund—referred to as the High Population Initiative— helps underwrite beef promotions in states with high human populations but low cattle numbers and, therefore, limited checkoff collections. The South Dakota Beef Industry Council (SDBIC) contributed $100,000 of its 2008 budget to help get the positive news of beef into areas where it can help build beef demand.
          “If we truly want to have an impact on increasing the demand for beef, and increase profit opportunities for South Dakota beef producers, we need to invest our checkoff dollars in areas with high populations,” says beef producer and SDBIC Executive Director Barry Jennings. “We successfully implement our mission and vision through the Federation of State Beef Councils and the Federation Initiative.”
          The FSBC recently awarded seven grants through the Federation Initiative Fund, which just topped $1 million. The fund is supported financially by FSBC, and voluntary contributions from 10 state beef councils, including those in South Dakota, Arkansas, Colorado, Idaho, Iowa, Kansas, Kentucky, Nebraska, Oklahoma, and Texas.
          Those high-population states receiving grants for 2008 include Florida, Georgia, Michigan, Nevada, New York, Oregon and Pennsylvania. Projects funded range from foodservice seminars, retail promotions and consumer events to health partnerships and other marketing efforts.
          Under the Beef Checkoff, state councils are required to send 50 cents of every dollar collected to the Cattlemen’s Beef Board to fund national programs. The remaining 50 cents can be spent on in-state programs. The South Dakota Beef Industry Council has traditionally sent some of those dollars to help fund national programs, says Jennings.
          “Our producers understand that because of our state’s low population and high cattle numbers, it’s essential to use those dollars where they can be most effective,” he explains. “SDBIC’s investment in the Federation Initiative is a testament to our trust in this project and the powerful impact we can have by investing in national programs."
          The Federation Initiative Fund was established in 2006 with $200,000 in seed money. With additional financial contributions from the cattle feeding states, the grants have made possible 38 targeted, high-visibility beef promotions in 14 states. Grant decisions are made by the FSBC’s chairman, vice chairman, and seven regional vice presidents, representing the 45 state beef councils that officially collect the checkoff dollar.

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The SDBIC collects and administers the $1 Beef Checkoff on cattle sold in South Dakota. Checkoff dollars are utilized strictly for promotion, education or research programs. Fifty cents of every dollar is directed to the Cattlemen’s Beef Board for programs on the national level. The SDBIC retains 50 cents, which is invested in additional national programs or in-state programs.
          The SDBIC is comprised of three representatives from eight agricultural organizations: SD Beef Breeds Council, SD Cattlemen’s Association, SD Cattlemen’s Auxiliary, SD CattleWomen, SD Farm Bureau Federation, SD Farmers Union, SD Livestock Auction Market Association, and SD Stockgrowers Association.