Several beef organizations have recently agreed on a plan to improve the beef checkoff program. As it stands right now, the national program amounts to $1-per-head, and in general it was designed to drive up the demand for beef not only across the country, but around the world. The program is funded by both beef producers and importers, and in the past it has received money through various channels including everything from research investments to promotion.
Recently, a revised memorandum of understanding, otherwise known as an MOU, was signed that would make several enhancements to this program. Seven different organizations signed this MOU, including the National Cattlemen’s Beef Association, American National Cattle Women, Inc., and the American Farm Bureau Federation.
But just what are some of the changes being made to the program? There are several, the biggest of which is the fact that the checkoff program will now offer $2-per-head instead of $1. This is in part because the original program began in 1986. Since then, the value of $1 has deflated to just $.47. With $2 now being offered instead, that gap is closed.
There will be several other changes to the program, including the ability for a majority of program payers to increase the checkoff after reassessing it in a year. It will be interesting to watch the evolution of this program as it moves forward with these changes and others, but so far it seems like the MOU has been a success.
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