South Dakota Beef Producers Help Plan Checkoff Budget

PIERRE (July 14, 2006)—South Dakota beef producers had a voice at the table in Reno, Nev., this past week as a budget was approved for checkoff programs during the Cattle Industry Summer Conference.

            Eight representatives of the South Dakota Beef Industry Council (SDBIC) sat on a variety of committees that recommend how the $1-per-head checkoff—which is celebrating its 20^th anniversary—will be utilized in fiscal 2007, which begins October 1.

            “We’ll be sending to the Cattlemen’s Beef Board (CBB) Operating Committee a request for $53.1 million,” says Pat Blum, Reliance, S.D. rancher and a member of the CBB board. Those dollars, she explains, will be dispersed among the various committees and programs focused on beef promotion, research or education.

            The budget, which still must be approved by USDA, reflects a slight increase from the $52 million budget for Fiscal 2006. In includes a projected revenue of $45.6 million for Fiscal 2007, plus money to be available from program budgets costing less than originally estimated.

            “These committees meeting during the Summer Conference are made up of producers,” explains Blum. “It is the grassroots of the beef industry determining where they would like to see checkoff dollars spent. The Operating Committee, which will review these requests in September, is comprised of producers, as well.”

            Blum, for example, chairs the Health Influencers Committee, which will be focusing on what the USDA labels as the childhood obesity problem in the U.S. “Our target audience will be the gatekeepers of youth—parents and schools—who influence a youth’s diet,” explains Blum. She says the checkoff program will concentrate on supplying these influencers with the message and information about the nutritional value of including lean beef in a young person’s diet.

            Roger Gerdes, president of the SDBIC and a Miller cattle rancher, sits on the Joint Advertising Committee representing the Federation board—the checkoff side of the National Cattlemen’s Beef Association (NCBA). During the Summer Conference, Gerdes says the committee again elected to concentrate on advertising beef primarily through print and radio. “Our print message to consumers will primarily focus on nutrition,” says Gerdes. “We always work to be efficient with checkoff dollars, and print and radio are the most economical choice for advertising at this time.”

            He adds that the checkoff’s intensive summer grilling promotional campaign has been deemed successful. Running from Memorial Day to Labor Day, the campaign was a more aggressive than normal push to reduce a large supply of beef in the marketplace this spring and has shown positive results.

            South Dakota ’s representation during these meetings extends beyond Blum and Gerdes. The state’s producers hold four chairman or vice chairman positions on the national level. Other South Dakotans holding committee positions include: CBB— Ed Blair , Vale, Gary Sharp, Bath, and Merrill Karlen, Oacoma; Federation— Becky Walth , Glenham, Mike Stahly, Cavour, Nancy Montross, DeSmet, and Tom Connelley , Belle Fourche.

In addition, Midland beef producer Nancy Stirling Neuhauser serves as president of the American CattleWomen’s Association, also meeting during the Summer Conference. Mitchell native Amanda Nolz is serving as National Beef Ambassador, and gave a presentation to hundreds of participants at the Summer Conference.

            “ South Dakota is very well represented,” says Blum. “Our members have an excellent record of turning out to get involved in these important committee discussions and voting on how checkoff dollars will be best utilized.”

            As the checkoff turns 20 years old, Blum says Summer Conference participants were reminded that in 1986, gas was $1 and is now $3, a first-class stamp was 20 cents, and is now 39 cents, and fat cattle prices were in the 50-cent-per pound range, now in the  80’s. “While other items have gone up in price, the dollar checkoff,” says Blum, “is still one dollar and continues to be effective for the producer.”

            The SDBIC, which collects the beef checkoff in South Dakota , is comprised of 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 Marketing Association, and SD Stockgrowers Association. The SDBIC sends at least 50 cents of every dollar collected to the CBB for national programs and can retain up to one-half for in-state use.