Iowa beef producers approve state checkoff

Iowa beef producers have spoken. They want an extra 50 cents per head of cattle to be used for promoting Iowa beef.

Preliminary results of the Nov. 30 referendum show 56 percent of Iowa beef producers in favor of reinstating the Iowa beef checkoff, the Iowa Department of Agriculture and Land Stewardship reported Thursday. A simple majority was needed.

'I think it's a big deal for the state of Iowa,” said Dr. Phil Reemtsma, a veterinarian and beef producer in DeWitt who is president of the Iowa Cattlemen's Association. 'We need to reinvest in our industry.”

The new 50-cent checkoff, which will be collected starting March 1, is on top of a $1-per-head federal checkoff.

Since 1985, $1 from the sale of each cow raised in Iowa went to the Iowa Beef Industry Council, which split the money with the national Cattlemen's Beef Board. The national Beef Checkoff brought in $41.8 million in fiscal 2015, with $20.9 million divided among 43 state beef councils, according to the board's 2015 annual report.

From 1976 to 1985, Iowa had a state beef checkoff, but that stopped with the federal program.

Iowa beef industry officials said they need the extra money, which they estimate at up to $1.5 million a year, to research beef production and educate the public about the benefits of the industry. Beef is also having a hard time competing against chicken and pork for Americans' food dollars, officials said.

'We're in direct competition with chicken and pork, no question about it,” Reemtsma said.

Per capita beef consumption dropped from 84 pounds in 1976 to 51 pounds in 2013, the U.S. Department of Agriculture's Economic Research Service reported. Over the same time, chicken increased from 27 pounds per person to 55 pounds.

But as the economy improves and beef prices go down, steaks, roasts and burgers should rebound, Reemtsma said.

Beef producers who oppose the checkoff or don't like how the money is being spent can seek a refund of the Iowa portion - which hasn't been allowed since 1984. The 50 cents going to the national group is mandatory and would not be refunded.

The Iowa Farmers Union had lobbied for farmers being able to opt out of the checkoff on the front end instead of requesting refunds, but that was not part of state legislation allowing the referendum.

Iowa House File 2269, which had unanimous support in the Iowa House and Senate, allows producers to vote on whether they want to increase the state assessment from 50 cents to up to $1. The Iowa beef checkoff money would be used to promote Iowa's cattle industry, research beef production, evaluate Iowa beef production needs and provide educational materials and opportunities about the benefits of Iowa's beef industry, the bill states.

Iowa Gov. Terry Branstad signed the bill into law in March.