KRS 247.610◦ Created in 1976 (ten cents)
Kentucky had a program ten years prior to the National Program
◦ Amended in 1985 (Twenty five cents)◦ Amended in 1988 (Federal Beef Promotion Act)◦ Amended in 2004 ( in the event National Program
is terminated)◦ Amended in 2013 (additional state checkoff)
38 Year History of the Kentucky Beef Promotion Checkoff
January 2011 KCA Convention Treasurer’s Report◦ the idea of a Kentucky beef promotion and payment protection fund was
suggested November 2011 KCA Board Meeting
◦ Committee was appointed to draft a resolution that would pursue the addition of state checkoff
January 2012- Resolution passed◦ proceed with the required actions which would include a producer
referendum to amend KRS 247.610 to collect $1 per head Kentucky checkoff in addition to the $ 1 per head federal checkoff.
March 2013 – amended KRS 247.610 March 2014- Task Force Appointed
To review the intent of KRS 247.610
August 2014- Kentucky Board of Ag approved referendum request
November 20th, 2014- Referendum taking place
2011-Present
Funds can be used for creating a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for bovine animal products.
Funding areas are: Promotion, Education, Research, Market Development, and Global Marketing
KY Board of Agriculture maintains oversight responsibility to ensure the integrity of the program
Funds must be held outside of the state treasury No single assessment levied under any referendum shall
exceed one dollar ($1) on each bovine animal marketed State checkoff funds are refundable within 30 days of
payment by completing the appropriate forms Kentucky Cattlemen’s Association will serve as the
management entity
Highlights of KRS 247.610
Congress created the Beef Promotion and Research Act, the “Beef Checkoff Program”, with passage of the 1985 Farm Bill. Farmers and ranchers approved making the Beef Checkoff Program mandatory in 1988, with 79% voting in favor of it. Farmers and ranchers asked that the checkoff program be built on these tenets:
◦ All farmers and importers pay the equivalent of $1/head when a beef animal is sold throughout its lifetime
◦ One-half of the money collected by state beef councils (50 cents of every dollar) is invested through the beef council in each state
◦ All national checkoff-funded programs are budgeted and evaluated by the Cattlemen’s Beef Board (CBB), a stand-alone organization of checkoff-paying producer volunteers
◦ CBB farmer and rancher members are nominated by producer organizations in their states and appointed by the U.S. Secretary of Agriculture
National Checkoff History
National State Checkoff
Checkoff Checkoff Passed
North Carolina $1.00 $1.00 2010Alabama $1.00 $1.00 2011Tennessee $1.00 $.50 2011Ohio $1.00 $1.00 2014Georgia $1.00 $1.00 2014Texas $1.00 $1.00 2014
Checkoff programs in other states
When: November 20th , 2014 Time: 8AM-6PM local time Where: County Extension Offices Ballot:
◦ Shall the producers of bovine animals assess themselves an additional ONE DOLLAR ($1.00) per head sold, and use the funds so collected by the Kentucky Beef Promotion Council to finance a program to promote and stimulate by research, market development, and education, the use and sale, domestic and foreign, of bovine animal products? This assessment, authorized by KRS 247.610-685, shall become effective April 1, 2015 and shall be in addition to the federal assessment referenced in KRS 247.652.
Save the Date for the Referendum
Steve Kelly, Department of Agriculture◦ Appointed by Commissioner to serve as Referendum
Agent◦ Responsible to ensure accurate collection and tabulation
of ballots and maintaining integrity and public confidence in referendum process
Dr. Gary Palmer, University of Kentucky◦ Responsible for distributing materials to county extension
offices County Extension Offices
◦ Designated to serve as voting locations. County Extension Agents and/or Designee
◦ Serve as County Referendum Agent◦ Coordinate 2014 bovine animal referendum at the county
level
Outline of Responsibilities
You will receive two sets of correspondence with all the necessary materials to host a polling site◦1st Email- (Will mail hard copies on request)
Tuesday, October 28, 2014 Bovine Animal Referendum Guidelines Absentee Ballot Request Forms
◦ 2nd Mailing- (Sending 11/10/2014) Ballot Box, certification forms, ballots, envelopes
What materials will you receive?
Education & Promotion Materials
Shares value of beef promotion & KBC accomplishments
Provides a two-sided overview of the referendum
Top FAQ’s regarding the Kentucky Beef Checkoff
Email sent 10/21/2014
www.kybeefcheckoff.com Single most important resource to share information
about the referendum
Who can vote? Each person engaged in production of bovine animals on a
commercial basis, including the owners of farms on which bovine animals are produced, tenants and sharecroppers sharing in the proceeds of the sale of bovine animals shall be entitled to cast one (1) vote in the referendum.◦ Farmers who produce and market dairy cattle are eligible to
vote◦ Individuals must vote in their county of residence◦ Voters must be eighteen (18) years of age or older◦ Only one vote per individual regardless of the number of
counties the individual raises or markets bovine animals◦ Corporate producers will be permitted to vote only in the county
where their principle place of business is located◦ Eligible votes who reside outside the Commonwealth will be
permitted to vote only in the county where their farm is located◦ If producers own two (2) or more counties eligible voters who
reside outside the Commonwealth may choose one (1) of the counties for voting purposes
Each person whose name regularly appears on checks issued in payment for the sale of bovine animals is allowed to cast one (1) vote regardless of the ownership of the farm upon which bovine animals were produced.
No person who certifies to the county referendum agent that he is a producer of bovine animals shall be refused a ballot but such person shall be required to furnish agent with information specific enough for the commissioner to verify the person’s voting eligibility before such ballot is counted in the referendum.
Who can vote? continued
Absentee voting is permitted. Must complete “Request for Absentee Ballot
form” (County Referendum Agents will receive 10/28/2014)
The absentee request form shall be completed and sent to Commissioner of Agriculture at least ten (10) days in advance of the referendum date.
County Extension Agents will be asked to sign all requests
Request forms may be obtained from Kentucky Cattlemen’s Association, Kentucky Department of Agriculture, Kentucky Cooperative Extension Service offices or www.kybeefcheckoff.com
Absentee Voting
All voting must take place at county extension offices- absentee voting is permitted
Individual who wish to vote must complete: certification of eligibility form and present identification-incomplete or inaccurate completion of certification will disqualify the voter
A location will be provided that allows for confidential and secret completion of the ballot
Completed ballots must be put in ballot box
Voting Procedures
Should the county referendum agent (CRA) have reason to believe that a voter is ineligible to vote in the referendum, the CRA will allow the ballot to be cast. The CRA take the completed certification of the voter in question and seal it in a envelope. The CRA will write on the envelope “Questionable vote for the reason of ________”
This envelope will be included with the ballots and certifications sealed and returned to the Kentucky Department of Agriculture
What if voter is ineligible?
The ballot box and certifications will be under constant oversight by CRA or designee
Remove all ballots from ballot box and place, along with completed certifications into sealable envelope or box provided.
If no ballots were cast please return all ballots and certifications to the Kentucky Department of Agriculture
Checklists will be included with 2nd mailing to walk you through this process. Procedures are also outlined in Bovine Referendum guidelines
Completion of referendum
Each CRA will be provided a pre-addressed mailing box.
Please prepare materials to mail no more than 24 hours after voting complete.
The box will ship to the Kentucky Department of Agriculture
CRA will have the packaging containing ballots and certifications in their possession until personally delivered to a pickup location.
Do Not leave boxes unattended while awaiting pickup.
Shipping to Kentucky Department of Agriculture
Vote tabulation will begin when all ballots are received
A majority of the beef producers who vote, must vote in the affirmative, in order for the referendum to pass
The commissioner of agriculture will announce the results within ten (10) days after the referendum.
Vote Tabulation
Expected to conduct all activities relative to the referendum in such a manner as to conduct a fair and impartial referendum.
No individual or office will imply or recommend approval or disapproval of the referendum.
Personnel may attend public meetings designed to dispense information to the public. If personnel do attend public meetings, ensure that the public understands that attendance is solely to provide information on the voting process and not to imply support for any specific position.
Impartiality
Separate Checking Account◦ Would not co-mingle federal and state checkoff dollars◦ Would not co-mingle with association dollars◦ Would not co-mingle with grant dollars
Producer/stake holder council for state checkoff funds◦ Would review the intent of KRS 247.610◦ Then develop an annual marketing plan◦ Develop a annual budget
How would a state beef promotion checkoff be handled
2005 2006 2007 2008 2009 2010 2011 2012 2013$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$1,7
75,4
25
$1,5
85,9
38
$1,9
62,0
17
$1,5
68,9
95
$1,5
72,6
65
$1,5
94,4
84
$1,4
91,0
07
$1,4
80,3
80
$1,4
76,7
71
National Checkoff Collected
INC
OM
E
$500,000
$550,000
$600,000
$650,000
$700,000
$750,000
$800,000
$850,000
$900,00017 Year Checkoff Comparison
Revenue and ExpenseRevenue
Expenses
What is the role of the producer/stake holder council? This would be a “Uniquely Kentucky” Program
Where Kentucky Producers would make the decisions.
Create annual marketing plan
Create annual budget for each program area
Receive requests for funding
Make decisions about projects that will be funded
Promoting and Stimulating◦ Consumer Marketing & Advertising
Consumer Advertising Retail Food service
◦ Industry Information Public Relations Reputation Management Issues Management
Research◦ Support beef quality research at Kentucky University’s in cooperation with national funds◦ Follow national research priorities
Market Development◦ Provide funds for support of the development and implementation of national and foreign beef promotion,
Information, education, and research programs Fund National programs through the Federation of State Beef Councils, Meat Export Federation, Cattlemen’s
Beef Board
Education◦ Beef Quality Assurance◦ Production Programs◦ Youth Programs
Example of how dollars could be allocated
Amend KRS 247.610 (2013)
Make application to the State Board of Agriculture
Approval by the State Board of Agriculture
Commissioner of Agriculture would call for a referendum
What would be the process?
Total Receipts 1,494,482
Transfer to States (101,040)
Transfer to Beef Board (689,353)
Interest Income 37
Net to Kentucky 704,126
2013 Income
National Beef Checkoff
Total Receipts 1,393,442
Refund (10,000)
Interest Income 100
Total Income 1,383,542
*Based on 2013 national receipts
*Estimated Income
Kentucky State Checkoff
The Kentucky Cattlemen’s AssociationEstablished 1973
99County Associations
KCA BoardMeets Quarterly
KCA Executive CommitteeMeets monthly to review finances and scope of work
Steve Downs, President – Ken Adams, TreasurerGary Woodall, President elect – David Lemaster, Vice President
Kentucky Beef Council
Chuck Crutcher
Kentucky Cattlemen’s Association Tim White
Kentucky Beef Network ,LLCBobby Foree
Kentucky Cattlemen’s Foundation
Harvey Mitchell
KY Beef Promotions, LLC
Jr. Cattlemen Assn.
Kentucky Beef Network VII
Cow Country News/LAN
House of Delegates
Membership/Legislative
Producer Comm
Consumer, Industry
Research, Foreign
Promotion
Eden Shale Farm
Building
Scholarships
Leadership Program
Why a State Checkoff?
A State Beef Checkoff can address important beef industry challenges.
Misleading claims about food safety and animal care
Competition for export markets
Shifting consumer beef attitudes
Nutritional myths
Will more staff be required to efficiently administer a state checkoff program?
Yes, this program will require a dedicated staff person to effectively implement state beef checkoff projects. There may be opportunities to partner with the Kentucky Beef Council, Kentucky Dairy Development Council, Kentucky Beef Network, and other established entities to implement some programming requirements effectively.
Who will make the decision about how the state beef checkoff monies are utilized?
The membership of a producer/stake holder council will be nominated by the state beef checkoff steering committee every three years.
The KCA Full Board will approve the slate of nominations for the membership of a producer/stake holder council annually.
Each member can hold a position for a maximum of three years. Members can be reappointed after a one year absence.
Timeline for a referendum
Schedule Meeting 2- Structure State Checkoff & Planning a referendum
Suggested Date- July 23, 2014
Next Steps?
Checkoff expenses have increased dramatically
Revenues have not
28 years on the same dollar, 1985 vs today would be worth in the 47 to 49 cent range
Nationally the industry has had a hard time agreeing on just about anything
Anti-meat factions with exponentially larger budgets
US Beef Consumption is decreasing
The latest comprehensive econometric model identifying the value of a cattleman’s checkoff dollar indicates that producers get a return of $5.55 for every dollar invested.
Beef Council Challenges
The Kentucky Cattlemen’s Association
Established 1973
99County Associations
KCA BoardMeets Quarterly
KCA Executive CommitteeMeets monthly to review finances and scope of work
Steve Downs, President – Ken Adams, TreasurerGary Woodall, President elect – David Lemaster, Vice President
Kentucky Beef Council
Chuck Crutcher
Kentucky Cattlemen’s Association Tim White
Kentucky Beef Network ,LLCBobby Foree
Kentucky Cattlemen’s Foundation
Harvey Mitchell
KY Beef Promotions, LLC
Jr. Cattlemen Assn.
Kentucky Beef Network VII
Cow Country News /LAN
House of Delegates
Kentucky Beef Promotion Council
Name: Chuck Crutcher
Legislative Producer Comm
Consumer, Industry
Research, Foreign
Promotion
Eden Shale Farm
Building
Scholarships
Leadership Program
Made up of representatives of different segments of the industry, i.e. Cow Calf, Stocker, Market Agency, Dealers, Dairy, others
Should consider programs that are on going with the National Beef Checkoff programs.
The Advisory Board
12/21/2011 Met with David Beck and Jeff Harper
Saturday January 14, 2012 KCA Convention◦ Beef Promotion resolution passed◦ Explore all possible avenues to insure that
producers are positioned in the best possible way to recover funds. Resolution passed
Friday February 24, 2012◦ Executive committee reviews options and
directs Exec. V.P. to move forward
Promoting and Stimulating◦ Consumer Marketing & Advertising
Consumer Advertising Retail Food service
◦ Industry Information Public Relations Reputation Management Issues Management
Research◦ Support beef quality research at Kentucky University’s in cooperation with national funds◦ Follow national research priorities
Market Development◦ Provide funds for support of the development and implementation of national and foreign beef promotion,
Information, education, and research programs Fund National programs through the Federation of State Beef Councils, Meat Export Federation, Cattlemen’s
Beef Board
Education◦ Beef Quality Assurance◦ Production Programs◦ Youth Programs
Example of how dollars could be allocated