CEO DATELINE - Bill would prevent checkoff dollars from going to lobbying groups
CEO DATELINE - Bill would prevent checkoff dollars from going to lobbying groups
- July 18, 2016 |
- Walt Williams
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Two U.S. senators want to prevent organizations that lobby on agricultural issues from receiving funds from commodity checkoff programs—a change that could deplete some associations of a revenue source.
Checkoff programs are joint government-industry efforts in which fees are added to the price of certain agricultural goods to raise money for promotion and research of a particular crop or meat product. The money can't be used to lobby, but some associations with advocacy operations receive checkoff funds for their research and consumer outreach efforts.
The U.S. Department of Agriculture currently oversees more than 20 checkoff programs. Sens. Cory Booker (D-N.J.) and Mike Lee (R-Utah) recently introduced a bill that would make several changes to how the programs are administered, including preventing them from contracting with any organizations that lobby on agricultural policy.
"When checkoff programs engage in anticompetitive activity, it is a threat to a dynamic and informed free marketplace," Booker said in a statement. "This bipartisan legislation will help increase transparency and restore trust in checkoff program practices." http://bit.ly/2a2i6yk
The bill is largely a response to a controversy last year involving the American Egg Board, the checkoff program behind the "incredible, edible egg" ads. AEB CEO Joanne Ivy resigned in October after emails showed her organization had worked to financially harm a company that produced vegan mayonnaise. (Eggs are a main ingredient in traditional mayo.)
Still, a bigger target for many checkoff program critics is the National Cattlemen's Beef Association, which gets a majority of its annual revenue from beef checkoff funds. More than 140 individuals and groups—most representing small farmers and organic food advocates—alleged in a recent joint statement that NCBA promoted the interests of a minority of large cattle operations over those of the industry as a whole.
"The millions of checkoff dollars NCBA receives is their life-blood," the groups said. "Successful passage of this proposed legislation is critically important to restoring fair markets and rebuilding our domestic family farm and ranch agriculture."
NCBA received nearly $33 million from the beef checkoff program in 2014, according to tax filings. The association, which reported $57 million in total revenue that same year, had not issued any statements about the bill as of Monday morning. http://bit.ly/29Q03L8
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