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March 20, 2012

AMS Seeks Comment on Proposed Change to Act Governing Beef Checkoff

The Agricultural Marketing Service (AMS) of USDA is seeking comment on a proposed rule — published March 2, 2012, in the Federal Register — that would expand the contracting authority as established under the Beef Promotion and Research (Order). The summary of the rule published in the Federal Register (available online at https://federalregister.gov/a/2012-5145) states:

"The Beef Research and Information Act (Act) requires that the Beef Promotion Operating Committee (BPOC) enter into contracts with established national nonprofit industry-governed organizations, including the Federation of State Beef Councils, to implement programs of promotion, research, consumer information and industry information. The Act does not define 'national nonprofit industry-governed organization;' however, the Order states that these organizations must be governed by a board of directors representing the cattle or beef industry on a national basis and that they were active and ongoing prior to enactment of the Act. This proposed rule would change the date requirement in the Order so that organizations otherwise qualified could be eligible to contract with the BPOC for the implementation and conduct of Beef Checkoff programs if they have been active and ongoing for at least two years."

The National Cattlemen's Beef Association (NCBA) on March 14 submitted comments supporting the proposed rule. NCBA President J.D. Alexander said the rule is good for the industry and good for the checkoff, adding that the rule would ensure cattlemen are getting the best return on their investment.

"NCBA supports an open and transparent checkoff program that is producer-driven. This proposed rule would simply enhance this quest," said Alexander. "We support a competitive checkoff contracting system that ensures producers are getting the absolute best return on their investment."

Independent research conducted by the Cattlemen's Beef Board released in January 2012 shows that beef producer support for the checkoff is higher than it has been in 18 years, with 76% of producers supporting the checkoff. These producers say the checkoff "influences beef demand, contributes to their profitability and represents their interests." Alexander said the proposed rule will likely escalate producer confidence in the checkoff.

Written comments regarding the proposed rule must be received by May 1, 2012. Comments must be posted online at www.regulations.gov or sent to Craig Shackelford, Agricultural Marketing Specialist, Marketing Programs Division, Livestock and Seed Program, Agricultural Marketing Service, USDA, Room 2628-S, STOP 0251, 1400 Independence Ave. SW, Washington, DC 20250-0251; or fax to 202-720-1125. All comments should reference docket number AMS-LS-11-0086 document 2012-5145, page 12752-12754 of the March 2, 2012, issue of the Federal Register.

Comments will be available for public inspection at the aforementioned address, as well as on the Internet at http://www.regulations.gov/.

For more inforamtion contact Shackelford at 202-720-1115, fax 202-720-1125 or email him.

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