010303 Pork Producers Statement on Pork CheckoffMarch 3, 2001Des Moines, IA - The National Pork Producers Council (NPPC) supports the settlement agreement announced by the United States Department of Agriculture (USDA). "As a result of the settlement agreement, the mandatory pork checkoff will continue. The checkoff will continue to be invested in programs that will promote pork, educate consumers and producers, and address critical research priorities for pork producers of all sizes and geographic locations. "In addition, the settlement agreement will require a distinct separation between NPPC and the National Pork Board -- and particularly checkoff-funded programming and noncheckoff-funded policy initiatives. As a result, NPPC's role as general contractor to implement checkoff-funded programs will be terminated. Thereafter, NPPC will focus on policy related legislative and regulatory issues. These activities will be funded with only noncheckoff or unrestricted funds. In addition, the National Pork Board will be charged with the implementation of checkoff-funded promotion, consumer education and research initiatives. NPPC has agreed to this settlement for a simple but extremely important reason. This settlement fulfills our overarching goal of continuing the highly effective pork checkoff for the benefit of every pork producer. "The settlement agreement does not affect the current structure or operations of state pork producer organizations or the long-standing pork producer control of their checkoff funds. "Finally, as an element of the settlement agreement, USDA will conduct a survey of eligible pork producers and importers no sooner than June 2003, to determine if 15% or more of the eligible producers and importers favor a referendum. In this way, pork producers will be provided an opportunity to express their support or concern with the checkoff. If 15% of the eligible producers and importers request a referendum, one will be held in accordance with 7 U.S.C. S 4812(b) of the Pork Act. "On January 12, 2001 the Michigan Pork Producers Association, independent pork producers and the National Pork Producers Council filed a lawsuit in the United States District Court, Western District of Michigan seeking a Temporary Restraining Order (TRO) and a Preliminary Injunction. These legal actions were intended to stop USDA from taking actions to terminate the mandatory pork checkoff. "On January 19, 2001 the Judge presiding over the case granted a TRO, thereby blocking USDA from publishing or promulgating final rules while the Order was in effect. In addition, the Judge set a preliminary injunction hearing for February 2, 2001. Subsequently, USDA requested a delay in the preliminary injunction hearing. The parties agreed to a delay until March 16, 2001. "The Michigan Pork Producers Association, the independent pork producers and NPPC made three major arguments in our case. These arguments, in general terms are: 1) the Secretary of Agriculture did not have the legal authority to call for a referendum on the pork checkoff given that 15% of the eligible pork producers and importers did not sign a petition to request a referendum; 2) the Secretary of Agriculture did not have the legal authority to terminate the pork checkoff at all, and; 3) given the numerous irregularities identified in the implementation and voting on the referendum, there was no clear determination on the true outcome of the vote. "With the agreement of the settlement, our claims against USDA are resolved. "At the request of pork producers, the Pork Promotion Research and Consumer Information Act became law in 1985. The pork checkoff funds research, promotion and education programs designed to build a future and create opportunities for pork producers. By agreeing to this settlement brought forth by USDA, checkoff- funded programs will continue to benefit pork producers."
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