031050 Producers Would Feel Impact if Checkoff Lost

The U.S. Court of Appeals for the 6th Circuit ruled this week that the pork checkoff is unconstitutional, upholding a 2002 decision by a federal judge in Michigan.

Rod Johnson, executive director of the Nebraska Pork Producers Association, said he was not surprised by the ruling, especially following a similar ruling last week in which another federal court of appeals upheld that the beef checkoff program was also unconstitutional.

But what concerns Johnson is that, if the ruling is upheld after other legal avenues are exhausted, it will have huge implications for state pork producers.

"The only way independent family producers and the majority of the producers can have an effect on what is going on in the industry is to be united," Johnson said.

"If that united voice and united funding goes away, then it is going to put the power in the hands of the largest players. It is just going to work negatively against the average producer out there."

Along with promoting and educating consumers about pork, Johnson said checkoff dollars are used to fund research projects.

"A lot of the research projects funded by the checkoff program have resulted in good quality products and in good animal welfare and have increased production and allowed producers to be more efficient," Johnson said. "The information that has been learned through the research programs is taken to the producers, and they have access to it through the educational aspects of the checkoff."

The checkoff program collects 40 cents for every $100 in hog sales. While all the checkoff dollars collected in Nebraska go directly to the national checkoff program, Johnson said Nebraska receives back about $425,000 annually for local programs. The checkoff program in Nebraska is administered by the Nebraska Pork Producers Association.

While pork checkoff dollars are spent in Nebraska for promotion and educational programs, they are also invested into research projects at the University of Nebraska. Johnson said the checkoff program is funding six research projects at the university dealing with odor control, disease and nutrition.

Dave Hansen, NPPA president and a pork producer from Hartington, said the federal lawsuit and subsequent appeal focused on whether the checkoff violates First Amendment rights.

"Naturally, we are extremely disappointed in the announcement, but the NPPA and its volunteer producer-leaders will continue to work for Nebraska's pork producers by promoting pork, conducting research, creating educational opportunities and providing consumer information," Hansen said. "We have seen the program at work and are confident it works on the behalf of all pork producers, regardless of type or size of operation."

The U.S. Department of Justice, in consultation with the U.S. Department of Agriculture, will determine the next steps in the legal process, Johnson said. The Department of Justice has 45 days to decide whether to ask for a rehearing by the 6th Circuit in Cincinnati. The Department of Justice can also seek review of the case by the Supreme Court.

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