More than 500 cattle producers in Iowa have signed a petition for a referendum to reinstate the Iowa beef checkoff. The petition asking for a referendum to be held later this fall has been sent to the Iowa Department of Agriculture calling for a vote to create a state checkoff program that would generate up to $1.6 million annually.

Producers would pay 50 cents per head of cattle sold if this proposed state checkoff becomes a reality. The money would be used to promote Iowa beef, fund production research, and expand international markets, consumer education and other activities. Iowa’s nearly 27,000 cattle producers already pay $1 per head to support the national beef checkoff.

STATE CHECKOFF: Iowa cattle producers have sent a petition to the state ag department calling for a vote to create a state checkoff program that would generate up to $1.6 million annually. Producers would pay 50 cents per head on cattle sold; they already pay $1 per head to support national beef checkoff.

Producers want to promote Iowa beef with state checkoff funds

Katie Olthoff, communications director for the Iowa Cattlemen’s Association, says the national checkoff can’t be used for activities such as production research, an area where Iowa producers would like to see more investment. “The petition that was sent to the Iowa Department of Agriculture on September 2 had 500 signatures,” says Olthoff. “It comes following a survey that showed 80% of 900 Iowa cattle producers surveyed supported creating a state checkoff.”

The state checkoff was in effect prior to the creation of the federal beef checkoff in 1986. The Iowa Cattlemen’s Association members and leaders are interested in reinstating the state checkoff, as a way to further invest in Iowa’s beef industry. Olthoff says several other states already have their own checkoff programs as well as participate in the national checkoff.

State checkoff money could be used more flexibly than national checkoff

While the federal checkoff has remained steady at $1 per head since 1986, several states have instituted state checkoffs. The federal checkoff funds, which are subject to federal government rules, are used to promote and research beef. The proposed state checkoff in Iowa would be assessed at 50 cents on each head of Iowa cattle sold. The state checkoff money could be used more flexibly than the federal checkoff, although the state checkoff uses are limited to those outlined in Iowa Code Chapter 181.

Last fall, the Iowa Cattlemen’s Association surveyed its members and used those results to align Chapter 181 with current beef industry needs. The priorities for using the state checkoff money as outlined in the survey results and in the code include:

•Marketing & promoting Iowa’s beef and beef products

•Enhancing Iowa’s beef industry image

•Production research

•Expanding international trade relationships

•Providing producer, consumer, and youth educational opportunities

Statewide referendum will take place later this fall

The referendum of Iowa cattle producers will take place later this fall. Producers will be able to request an absentee ballot from the Iowa Department of Agriculture beginning on October 10. Absentee ballots must be returned during the month of November, or producers may visit their county Extension offices on Wednesday, November 30 to vote in person.

If the referendum passes, collection of the state checkoff will begin March 1, 2017. The Iowa beef checkoff will be mandatory, but refunds will be available to interested producers. 

If this state checkoff passes, who will manage the money?

If the Iowa referendum passes, specific decisions on the administration of the funds would be made by the Iowa Beef Industry Council officer team, which includes five elected cattle producers, the Iowa Secretary of Agriculture, the dean of the College of Agriculture & Life Sciences at Iowa State University, a representative from the Livestock Market Association, and two ICA producer members. The funds will be administered by the Iowa Beef Industry Council.

Olthoff says “several areas of agriculture are struggling financially now, including cattle production, due to low prices. But cattle producers see the need for the Iowa beef checkoff as a long-term investment in generating a stronger demand for their products.”