010121 Ranchers Seek Beef Referendum

Pierre, SD - Three South Dakota ranchers, the Livestock Marketing Association and others are suing in federal court to force a referendum on the beef checkoff program.

The U.S. Agriculture Department received thousands of signatures 14 months ago from cattlemen requesting a nationwide vote on the program but has not yet scheduled an election.

Farmers and ranchers have been charged $1-per-head on cattle sold since Congress approved the program in 1985. The checkoff fee, which raises about $80 million a year, goes to the National Cattlemen's Beef Association for beef promotion and research.

But many of those who raise cattle argue that the money is squandered. Beef consumption has declined, and the checkoff should be ended, they say.

Nancy Robinson, an LMA vice president, said more than $1 billion has been collected from the cattle industry since 1985, but beef consumption continues to fall. She said per capita consumption peaked at 89 pounds in 1976 but declined to 65 pounds in 1998.

“Not only were consumers purchasing much less beef by 1998, but also (cattle) prices were at frustratingly low levels,” Robinson said.

Low prices for beef prompted LMA to begin the petition drive, she said.

The 800-member Livestock Marketing Association, which is based in Kansas City, Kan. and represents livestock auction markets and others, began collecting signatures in July 1998. USDA was presented with 145,045 names in November 1999.

After USDA said only signatures from a 12-month period could be submitted, LMA narrowed its list to 125,788 signatures. USDA had informed the group in April 1998 that 116,791 signatures, which was equivalent to 10% of cattle producers, were necessary before the agriculture secretary would make a decision on a referendum.

Challenging the signature validation process and hoping to either force an election or have the checkoff ruled unconstitutional, LMA was joined in its lawsuit by the Western Organization of Resource Councils, which has members in the Dakotas, Montana, Wyoming, Idaho and Colorado. Three ranchers who have paid the checkoff fee and signed referendum petitions - Robert Thullner of Herreid, Johnny Smith of Fort Pierre and Ernie J. Mertz of Bowdle - also are listed as plaintiffs.

Support for the referendum is especially strong in South Dakota, the lawsuit said, indicating that 8,545 of the state's 18,700 cattle producers signed petitions.

The lawsuit challenges the signature validation process and accuses Agriculture Secretary Dan Glickman of dragging his feet on the referendum. USDA hired a private accounting firm to contact farmers and ranchers who signed the petitions, and the firm is verifying their eligibility to sign by requiring them to provide information on cattle they have sold, LMA said.

Farmers and ranchers were not told before signing petitions that they would have to provide sales documents, the lawsuit said.

“Although cattle producers have been making mandatory checkoff contributions since 1986, USDA apparently does not have any way of identifying the cattlemen who have contributed to the program,” Robinson said.

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