Checkoff Assessment
About Checkoff Assessment
This section contains information about reporting requirements under the Beef Checkoff Program.
BEEF PROMOTION AND RESEARCH PROGRAM - a program designed to increase demand for beef and beef products through industry-sponsored activities of beef promotion, research, consumer and industry information on state and national levels. Information is required by 7 CFR 1260.201. Failure to report can result in a fine. Information is held in confidence per 7 CFR 1260.203.
The following explanations answer the most frequently asked questions about the checkoff. If you still have questions about any part of the checkoff after reading these answers, call the Texas Beef Council (TBC) at 1-800-846-4113.
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Texas Beef Council, P. O. Box 822, San Antonio, TX 78293-0822
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Contact TBC at 1-800-846-4113. TBC has a number of information pieces illustrating how checkoff dollars are invested.
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Whoever makes payment to the seller is a collection point or collection person (this could be the actual buyer or the buyer's agent). That entity or person must withhold $1 per head and remit those funds to the Texas Beef Council. Examples of collection points are: Auction Markets, Feedyards, Packers, Dealers, Order Buyers, Other producers, Auctioneers, Sale Managers, Clerking services, Banks, and Other entities that buy or sell cattle.
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Correct. Under the checkoff structure, you should deduct $1 from the sales price and send it to TBC. However, if the purebred breeder sells several bulls in one day to several buyers, it may be more convenient for him to take the full sales price for his bulls and remit the checkoff. Either method is fine. The one thing to remember is that, under law, buyer and seller are equally liable to see that the $1 per head is collected and paid so make sure to determine who will remit the checkoff.
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Yes. All bovines sold must be checked off. Sales by private treaty of beef and dairy cattle, buffalo and beefalo, sales of baby calves and sales of seedstock all are subject to the $1 per head checkoff.
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When you sell, you, as the last American owner, must pay the checkoff dollar. If you purchase cattle from Mexico, $1 is collected at the time of purchase if the purchase transaction is conducted after the cattle have arrived in the United States. If the purchase transaction is conducted prior to the cattle arriving in the United States, no checkoff is due. An import $1 is collected by U.S. Customs at the crossing of the cattle. The import $1 collected by customs cannot be used to claim an exemption from paying the $1 on change of ownership.
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Generally, no. They would be administered in the checkoff program by the Kansas Beef Council. The same system means that checkoff dollars from Southeastern cattle that are fed in Texas feedlots stay in Texas rather than their state of origin. The rule is that if cattle are located in one state for 30 days prior to their sale, the checkoff dollars stay in that state. If it is less than 30 days, then the dollars go to the state of origin. Imported cattle always are considered original to the state in which they entered.
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Repeated action by the courts has shown the severity of willfully failing to pay checkoff dollars. A Montana ranching family recently was ordered by an administrative law judge to pay past assessments, late payment charges and $12,000 in civil penalties for refusal to pay checkoff dollars. TBC is charged by law to monitor all cattle transactions and assure uniform payment of the checkoff assessment. TBC also is required to turn over to the Beef Board the names of any producers or collections sites that refuse to pay the checkoff for action that can include a restraining order and a civil penalty of up to $5,500 per transaction.
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The boards of the Texas Beef Council and the Cattlemen's Beef Promotion and Research Board are made up of producer volunteers nominated by cattle organizations such as Texas and Southwestern Cattle Raisers Association, Texas Cattle Feeders Association, Texas Farm Bureau, Texas CattleWomen, Independent Cattlemen's Association of Texas, as well as livestock markets, dairy producers, packers and purebred breeders.
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Texas Beef Council Contact:
Dina Foley
(800) 846-4113