The inaugural Agriculture Promotion Groups’ Educational Showcase was held last month in Washington, D.C.

USDA Under Secretary for Marketing and Regulatory Programs Greg Ibach kicked off the educational event with remarks at the Hyatt Regency Washington for leaders of 16 ag promotion groups representing commodities, from almonds and avocados to walnuts and watermelon.

“Even though ag promotion groups have been around for more than 80 years, few people truly understand how these industry-funded groups operate and why,” Ibach said. “We hope this showcase raises awareness of how research and promotion programs and marketing orders help American farmers, ranchers, importers and industry work together to build demand and be more competitive through promotion, research and education, while providing value to consumers and the economy.” 

Stories of self-funded success, including these innovations made possible by ag promotion groups, were on display at the USDA-sponsored event. 

Checkoffs defined

Iconic consumer advertising campaigns like “Got Milk,” “The Incredible Edible Egg” and “Pork, the Other White Meat” are examples of generic marketing programs paid for by farmers and allied industry members through their checkoffs.

“Being a part of an ag promotion group helps us achieve common goals,” said Michael Warren, chairman of the National Mango Board.

Producers of generally homogeneous commodities, like cranberries, Christmas trees, lamb, mangos, mushrooms, olives, paper and pecans, pool their resources to help, ultimately, consumers and industries access, enjoy and learn more about foods and fibers.

“If you’ve learned how to cut and use watermelon from a magazine article, discovered new honey uses on a website, or heard about research resulting in breakthrough medical findings for peanut allergies from a health reporter on TV, chances are one of America’s ag promotion groups made that information possible and accessible,” added Greg Gill, chairman of the National Peanut Board.

Checkoffs and marketing orders were created by acts of Congress, at the behest of industry to help improve on-farm productivity, expand U.S. and international demand and educate consumers about the benefits and/or uses of their respective commodities. USDA oversees 37 ag promotion groups.

The first checkoff, The Cotton Board, was formed in 1966. The most recently formed marketing order, the American Pecan Council, was established in 2016.

Return on Investment

Ag promotion groups are required to measure their return on each dollar invested. Research shows the returns are significant. 

A 2017 study, “U.S. National Economic Contribution of Generic Food and Agricultural Product Advertising,” concluded that for each dollar spent on advertising and promotion by ag promotion group campaigns, stakeholder returns ranged from $2 to $15. 

The 2017 study also found that the success of ag promotion group programs in supporting and growing their respective sectors of agriculture spills over to the general economy, creating jobs, generating income and spurring economic growth. The study estimates more than 825 jobs were supported for each million invested in 2015. 

The 27 ag promotion groups measured in the 2017 study invested a combined $624.6 million in commodity promotion programs in 2015.

USDA conducts comprehensive management reviews with each group and requires independent annual financial audits and periodic econometric reviews to measure ROI to ensure full and complete transparency. Most ag promotion groups also directly pay for their congressionally mandated USDA oversight. 

“As a family farmer, I know from experience how important the USDA oversight role is,” said Ibach. “We are committed to helping the thousands of farmers and ranchers represented here to communicate the successes they achieve by working together to overcome agricultural challenges.”

Source: USDA Agriculture Promotion Groups Educational Showcase