WASHINGTON, April 3, 2013 - Critics of the close
relationship between National Cattlemen’s Beef Association (NCBA) and the Beef
Board will be disappointed by the findings of a new USDA
Inspector General's report, which finds the two organizations are carrying
out the $52 million beef checkoff program according to the law and USDA
regulations.
“The Office of Inspector General (OIG) determined that the
relationships between the Cattlemen’s Beef Promotion and Research Board (beef
board) and other industry-related organizations…complied with legislation,” the
report’s authors wrote. OIG also “found no evidence” to support “specific allegations
that beef checkoff funds may have been misused.”
“We are proud to receive this validation of the
effectiveness of our systems and processes to safeguard producer and importer
investments into the Beef Checkoff Program,” the Beef Board said in a
statement. “The bottom line: Producers and importers can be assured by the OIG
report and the Beef Board’s mission of continual improvement that our checkoff
dollars are being invested appropriately and effectively.”
The National Farmers Union also praised the report’s
outcome, though the group has been critical of Beef Board operations in the
past. “It is important that USDA
periodically and randomly conduct audits to mandatory programs,” NFU said in a
statement. “We are pleased that the audit on the CBB has shown that the program
has operated within the boundaries of the law. NFU has been working with the
beef industry group in an effort to improve the checkoff's governance so that
it is more flexible to adapt to changing demographics and markets and better
serve U.S. cattle producers.”
Though the report was good news for the beef board, it did
include a number of recommendations for USDA’s Agricultural Marketing Service.
The audit recommended AMS “implement oversight procedures specific to the beef
board [and] perform management reviews of the beef program.”
The report also recommended the Beef Board improve the
transparency of its documents.
The beef checkoff program, managed by the Beef Board,
collects a $1 assessment on each head of domestic cattle sold. It also assesses
a “tax” on international imported cattle and beef products. Those funds may be
used for market promotion, research and consumer education. But Beef checkoff
programs may not be used on lobbying activities.
Because the National Cattlemen’s Beef Association is both
the Beef Board’s closest contractor and the industry’s main lobbying arm, many
have accused the groups of violating beef checkoff program guidelines. This
report, however, will temporarily put those allegations to bed.
#30
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