BISMARCK, N.D. -- The North Dakota Senate Agriculture Committee on March 6 heard testimony on whether a "North Dakota dollar" should be added to what beef producers pay to a check-off -- doubling an amount already collected under a federal check-off.
Senate Agriculture Chairman Joe Miller, R-Park River, said the bill will likely be considered at the committee's next meeting on March 12 for possible floor action the following week, including an amendment that proposes a state referendum vote by cattle producers to put the increase into place.
HB 1238 does not disturb the federal check-off of $1 per head. The federal check-off is collected by the North Dakota Beef Commission but half of the funds are used nationally -- sent to a Cattlemen's Beef Board or to Federation of State Beef Councils. The North Dakota Beef Commission keeps the other half.
If approved, the beef check-off would add $1 per head and would be controlled at the state level for research and promotion. The new dollar check-off could be refundable at the producer's request. It has a "sunset" provision, meaning it would disappear if the federal check-off increases by $1 or more -- a goal that some national beef groups are working toward.
A check-off refund procedure is familiar to many crop growers, but would be new to state cattlemen because the existing federal check-off in place since 1986 is not refundable. The refund process isn't yet set, but is expected to be similar to the refunds in other commodities. Producers would have 60 days to apply for a refund and the refund would be completed within 90 days of the initial transaction.
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Impassioned testimony
The Senate heard numerous witnesses in favor of the bill.
Jerry Effertz, a Velva, N.D., beef producer and a member of the National Beef Promotion Operating Committee, which determines budgets for all federal beef check-off dollars, said a survey conducted in December and January found three out of four beef producers support the national check-off, with only 11 percent disapproving.
Grady Thorsgard of Northwood, N.D., said the additional money is needed because of national nutritional planning programs that have taken the emphasis off beef.
Opponents mostly focused on national check-off efforts.
Larry Kinev, a producer from Dawson, N.D., said it's "insulting" to insinuate that opponents of the bill are failing to support the industry. He also said he'd like all of the money to stay in North Dakota.
Frank Tomac, Sioux County, N.D., objected to the check-off, saying it has been ineffective in curtailing the consumption of beef in the U.S.
State Sen. Don Schaible, R-Mott, filed an amendment that would require the North Dakota agriculture commissioner to run a state referendum before the $1 check-off increase could be put in place. The amendment would require the North Dakota Beef Commission to fund the referendum. The committee didn't hear any testimony on the amendment on March 6.
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Nancy Jo Bateman, executive director of the North Dakota Beef Commission, said the state commission's funds are collected under federal rules and money couldn't be used for such a referendum.
As for the refund, Bateman explained that the beef commission would make the refund process as easy and quick as possible. She estimated the commission would send out a check within a week of receiving proper documentation of the check-off being collected.
The new state check-off would effectively triple the gross amount available to the state commission. It isn't clear what the net increase would be after refunds.
Bateman said the funds could be used at the organization's discretion, but could theoretically be used anywhere in the state, nation or world, or in cooperation with other projects. She said the board doesn't have a concrete plan for using the money, if approved.
"There are a tremendous number of possibilities," she said, but noted research funds could go to the Beef Systems Center of Excellence or to the Barbecue Boot Camp.
She cited a list of projects including education, management, beef quality assurance and others that could be resumed or created to make use of the money.
