USDA seeks stay on beef-checkoff injunction

By The Associated Press

07.09.02

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SIOUX FALLS, S.D. — The U.S. Department of Agriculture filed a motion seeking a stay of a federal judge's decision to halt collections of money under the beef-checkoff program, pending an appeal.

U.S. District Court Judge Charles B. Kornmann ruled last month that the national beef-checkoff program violated the First Amendment rights of cattle producers and called for the USDA to halt collection for the program starting July 15.

The ruling was appealed last week and in yesterday's motion, the USDA asked the U.S. Eighth Circuit of Appeals to grant a stay by July 11. The USDA must have a decision by that date so it will have time to notify collectors whether they must comply with Kornmann's injunction, the motion said.

Since 1985, livestock producers have had to pay a mandatory $1-per-head fee on cattle sold in the United States. Half of that money goes to the Cattlemen's Beef Promotion and Research Board and half to qualified state beef councils. The groups came up with the popular "Beef: It's what's for dinner" slogan.

Those opposed to the checkoff are upset that the advertisements promote beef in general and not American beef.

In his opinion, Kornmann said cattlemen should not be required to pay for commercials, which is a form of speech, that they oppose. But the USDA said the nationwide injunction to halt collections was too broad.

"One, the district court entered a nationwide injunction even though this was not a class action and only five individual plaintiffs were found to have standing. The fact that the checkoff was originally approved by a majority of the cattlemen voting on it ... makes such a nationwide injunction particularly improper," the Agriculture Department document said. "Two, the district court's injunction bars the collection of the entire one dollar checkoff even though only about half of each dollar goes to generic advertising."

The USDA motion also said cattle producers would suffer minimal harm if required to take part in the beef-checkoff program while the appeal goes forward.

In Wyoming, meanwhile, the state beef council is looking to state law so that the $1-per-animal fee can continue to be collected, the Associated Press reported in a story from Cheyenne.

The five-member Wyoming Beef Council board voted unanimously yesterday to invoke a 31-year-old state statute and have the state continue to collect the fee if necessary.

"The Beef Council is acting in the best interest of beef producers in the state," Chairman Bob Tavegie said. "That's what it all amounts to."

In a similar case last year, the U.S. Supreme Court ruled that a checkoff program for mushroom producers was unconstitutional under the First Amendment.

"Mandatory checkoffs are on their way out," said John McBride, information director for the Kansas City-based Livestock Marketing Association.

McBride said the Wyoming Beef Council's decision was the first he had heard of seeking authority to maintain the fee under state laws. The Livestock Marketing Association has not taken steps to challenge state checkoff programs, which are on the books in 27 states.

Previous

Beef Board can't force producers to fund generic ads
Federal judge orders halt to collections for checkoff program, which requires ranchers to pay a $1 per-head fee on cattle sold in the U.S. for beef promotion, research.  06.24.02

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