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History of Kentucky Checkoff Program

History of Kentucky Checkoff Program. 38 Year History of the Kentucky Beef Promotion Checkoff. KRS 247.610 Created in 1976 (ten cents) Kentucky had a program ten years prior to the National Program Amended in 1985 (Twenty five cents) Amended in 1988 (Federal Beef Promotion Act)

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History of Kentucky Checkoff Program

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  1. History of Kentucky Checkoff Program

  2. 38 Year History of the Kentucky Beef Promotion Checkoff • KRS 247.610 • Created in 1976 (ten cents) • Kentucky had a program ten years prior to the National Program • Amended in 1985 (Twenty five cents) • Amended in 1988 (Federal Beef Promotion Act) • Amended in 2004 ( in the event National Program is terminated) • Amended in 2013 (additional state checkoff)

  3. 2011-Present • January 2011 KCA Convention Treasurer’s Report • the idea of a Kentucky beef promotion and payment protection fund was suggested • November 2011 KCA Board Meeting • Committee was appointed to draft a resolution that would pursue the addition of state checkoff • January 2012- Resolution passed • proceed with the required actions which would include a producer referendum to amend KRS 247.610 to collect $1 per head Kentucky checkoff in addition to the $ 1 per head federal checkoff. • March 2013 – amended KRS 247.610 • March 2014- Task Force Appointed • To review the intent of KRS 247.610 • August 2014- Kentucky Board of Ag approved referendum request • November 20th, 2014- Referendum taking place

  4. Highlights of KRS 247.610 • Funds can be used for creating a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for bovine animal products. • Funding areas are: Promotion, Education, Research, Market Development, and Global Marketing • KY Board of Agriculture maintains oversight responsibility to ensure the integrity of the program • Funds must be held outside of the state treasury • No single assessment levied under any referendum shall exceed one dollar ($1) on each bovine animal marketed • State checkoff funds are refundable within 30 days of payment by completing the appropriate forms • Kentucky Cattlemen’s Association will serve as the management entity

  5. National Checkoff History • Congress created the Beef Promotion and Research Act, the “Beef Checkoff Program”, with passage of the 1985 Farm Bill. Farmers and ranchers approved making the Beef Checkoff Program mandatory in 1988, with 79% voting in favor of it. Farmers and ranchers asked that the checkoff program be built on these tenets: • All farmers and importers pay the equivalent of $1/head when a beef animal is sold throughout its lifetime • One-half of the money collected by state beef councils (50 cents of every dollar) is invested through the beef council in each state • All national checkoff-funded programs are budgeted and evaluated by the Cattlemen’s Beef Board (CBB), a stand-alone organization of checkoff-paying producer volunteers • CBB farmer and rancher members are nominated by producer organizations in their states and appointed by the U.S. Secretary of Agriculture

  6. Checkoff programs in other states National State Checkoff CheckoffCheckoff Passed North Carolina $1.00 $1.00 2010 Alabama $1.00 $1.00 2011 Tennessee $1.00 $.50 2011 Ohio $1.00 $1.00 2014 Georgia $1.00 $1.00 2014 Texas $1.00 $1.00 2014

  7. Save the Date for the Referendum • When: November 20th , 2014 • Time: 8AM-6PM local time • Where: County Extension Offices • Ballot: • Shall the producers of bovine animals assess themselves an additional ONE DOLLAR ($1.00) per head sold, and use the funds so collected by the Kentucky Beef Promotion Council to finance a program to promote and stimulate by research, market development, and education, the use and sale, domestic and foreign, of bovine animal products? This assessment, authorized by KRS 247.610-685, shall become effective April 1, 2015 and shall be in addition to the federal assessment referenced in KRS 247.652.

  8. Outline of Responsibilities • Steve Kelly, Department of Agriculture • Appointed by Commissioner to serve as Referendum Agent • Responsible to ensure accurate collection and tabulation of ballots and maintaining integrity and public confidence in referendum process • Dr. Gary Palmer, University of Kentucky • Responsible for distributing materials to county extension offices • County Extension Offices • Designated to serve as voting locations. • County Extension Agents and/or Designee • Serve as County Referendum Agent • Coordinate 2014 bovine animal referendum at the county level

  9. What materials will you receive? • You will receive two sets of correspondence with all the necessary materials to host a polling site • 1st Email- (Will mail hard copies on request) • Tuesday, October 28, 2014 • Bovine Animal Referendum Guidelines • Absentee Ballot Request Forms • 2nd Mailing- (Sending 11/10/2014) • Ballot Box, certification forms, ballots, envelopes

  10. Education & Promotion Materials Email sent 10/21/2014 Top FAQ’s regarding the Kentucky Beef Checkoff Shares value of beef promotion & KBC accomplishments Provides a two-sided overview of the referendum

  11. www.kybeefcheckoff.com • Single most important resource to share information about the referendum

  12. Who can vote? • Each person engaged in production of bovine animals on a commercial basis, including the owners of farms on which bovine animals are produced, tenants and sharecroppers sharing in the proceeds of the sale of bovine animals shall be entitled to cast one (1) vote in the referendum. • Farmers who produce and market dairy cattle are eligible to vote • Individuals must vote in their county of residence • Voters must be eighteen (18) years of age or older • Only one vote per individual regardless of the number of counties the individual raises or markets bovine animals • Corporate producers will be permitted to vote only in the county where their principle place of business is located • Eligible votes who reside outside the Commonwealth will be permitted to vote only in the county where their farm is located • If producers own two (2) or more counties eligible voters who reside outside the Commonwealth may choose one (1) of the counties for voting purposes

  13. Who can vote? continued • Each person whose name regularly appears on checks issued in payment for the sale of bovine animals is allowed to cast one (1) vote regardless of the ownership of the farm upon which bovine animals were produced. • No person who certifies to the county referendum agent that he is a producer of bovine animals shall be refused a ballot but such person shall be required to furnish agent with information specific enough for the commissioner to verify the person’s voting eligibility before such ballot is counted in the referendum.

  14. Absentee Voting • Absentee voting is permitted. • Must complete “Request for Absentee Ballot form” (County Referendum Agents will receive 10/28/2014) • The absentee request form shall be completed and sent to Commissioner of Agriculture at least ten (10) days in advance of the referendum date. • County Extension Agents will be asked to sign all requests • Request forms may be obtained from Kentucky Cattlemen’s Association, Kentucky Department of Agriculture, Kentucky Cooperative Extension Service offices or www.kybeefcheckoff.com

  15. Voting Procedures • All voting must take place at county extension offices- absentee voting is permitted • Individual who wish to vote must complete: certification of eligibility form and present identification-incomplete or inaccurate completion of certification will disqualify the voter • A location will be provided that allows for confidential and secret completion of the ballot • Completed ballots must be put in ballot box

  16. What if voter is ineligible? • Should the county referendum agent (CRA) have reason to believe that a voter is ineligible to vote in the referendum, the CRA will allow the ballot to be cast. The CRA take the completed certification of the voter in question and seal it in a envelope. The CRA will write on the envelope “Questionable vote for the reason of ________” • This envelope will be included with the ballots and certifications sealed and returned to the Kentucky Department of Agriculture

  17. Completion of referendum • The ballot box and certifications will be under constant oversight by CRA or designee • Remove all ballots from ballot box and place, along with completed certifications into sealable envelope or box provided. • If no ballots were cast please return all ballots and certifications to the Kentucky Department of Agriculture • Checklists will be included with 2nd mailing to walk you through this process. Procedures are also outlined in Bovine Referendum guidelines

  18. Shipping to Kentucky Department of Agriculture • Each CRA will be provided a pre-addressed mailing box. • Please prepare materials to mail no more than 24 hours after voting complete. • The box will ship to the Kentucky Department of Agriculture • CRA will have the packaging containing ballots and certifications in their possession until personally delivered to a pickup location. • Do Not leave boxes unattended while awaiting pickup.

  19. Vote Tabulation • Vote tabulation will begin when all ballots are received • A majority of the beef producers who vote, must vote in the affirmative, in order for the referendum to pass • The commissioner of agriculture will announce the results within ten (10) days after the referendum.

  20. Impartiality • Expected to conduct all activities relative to the referendum in such a manner as to conduct a fair and impartial referendum. • No individual or office will imply or recommend approval or disapproval of the referendum. • Personnel may attend public meetings designed to dispense information to the public. If personnel do attend public meetings, ensure that the public understands that attendance is solely to provide information on the voting process and not to imply support for any specific position.

  21. Thank You!

  22. How would a state beef promotion checkoff be handled • Separate Checking Account • Would not co-mingle federal and state checkoff dollars • Would not co-mingle with association dollars • Would not co-mingle with grant dollars • Producer/stake holder council for state checkoff funds • Would review the intent of KRS 247.610 • Then develop an annual marketing plan • Develop a annual budget

  23. What is the role of the producer/stake holder council? • This would be a “Uniquely Kentucky” Program Where Kentucky Producers would make the decisions. • Create annual marketing plan • Create annual budget for each program area • Receive requests for funding • Make decisions about projects that will be funded

  24. Example of how dollars could be allocated • Promoting and Stimulating • Consumer Marketing & Advertising • Consumer Advertising • Retail • Food service • Industry Information • Public Relations • Reputation Management • Issues Management • Research • Support beef quality research at Kentucky University’s in cooperation with national funds • Follow national research priorities • Market Development • Provide funds for support of the development and implementation of national and foreign beef promotion, Information, education, and research programs • Fund National programs through the Federation of State Beef Councils, Meat Export Federation, Cattlemen’s Beef Board • Education • Beef Quality Assurance • Production Programs • Youth Programs

  25. What would be the process? • Amend KRS 247.610 (2013) • Make application to the State Board of Agriculture • Approval by the State Board of Agriculture • Commissioner of Agriculture would call for a referendum

  26. National Beef Checkoff 2013 Income

  27. Kentucky State Checkoff *Estimated Income

  28. The Kentucky Cattlemen’s AssociationEstablished 1973 99 County Associations House of Delegates KCA Board Meets Quarterly KCA Executive Committee Meets monthly to review finances and scope of work Steve Downs, President – Ken Adams, Treasurer Gary Woodall, President elect – David Lemaster, Vice President Kentucky Cattlemen’s Foundation Harvey Mitchell Kentucky Cattlemen’s Association Tim White Kentucky Beef Council Chuck Crutcher Kentucky Beef Network ,LLC Bobby Foree Promotion Cow Country News/LAN Building Kentucky Beef Network VII Research, Foreign Membership/Legislative Scholarships Consumer, Industry Eden Shale Farm KY Beef Promotions, LLC Leadership Program Producer Comm Jr. Cattlemen Assn.

  29. Why a State Checkoff? A State Beef Checkoff can address important beef industry challenges. • Misleading claims about food safety and animal care • Competition for export markets • Shifting consumer beef attitudes • Nutritional myths

  30. Kentucky Cattlemen’s Association State Checkoff Program FAQ’s

  31. Will more staff be required to efficiently administer a state checkoff program? • Yes, this program will require a dedicated staff person to effectively implement state beef checkoff projects. There may be opportunities to partner with the Kentucky Beef Council, Kentucky Dairy Development Council, Kentucky Beef Network, and other established entities to implement some programming requirements effectively.

  32. Who will make the decision about how the state beef checkoff monies are utilized? • The membership of a producer/stake holder council will be nominated by the state beef checkoff steering committee every three years. • The KCA Full Board will approve the slate of nominations for the membership of a producer/stake holder council annually. • Each member can hold a position for a maximum of three years. Members can be reappointed after a one year absence.

  33. Where do we go from here?

  34. Next Steps? • Timeline for a referendum • Schedule Meeting 2- Structure State Checkoff & Planning a referendum • Suggested Date- July 23, 2014

  35. Thank you!

  36. Areas for dollars to be allocated • Promoting and Stimulating • Research • Market Development • Education

  37. Beef Council Challenges • Checkoff expenses have increased dramatically • Revenues have not • 28 years on the same dollar, 1985 vs today would be worth in the 47 to 49 cent range • Nationally the industry has had a hard time agreeing on just about anything • Anti-meat factions with exponentially larger budgets • US Beef Consumption is decreasing • The latest comprehensive econometric model identifying the value of a cattleman’s checkoff dollar indicates that producers get a return of $5.55 for every dollar invested.

  38. The Kentucky Cattlemen’s AssociationEstablished 1973 99 County Associations House of Delegates KCA Board Meets Quarterly KCA Executive Committee Meets monthly to review finances and scope of work Steve Downs, President – Ken Adams, Treasurer Gary Woodall, President elect – David Lemaster, Vice President Kentucky Cattlemen’s Foundation Harvey Mitchell Kentucky Cattlemen’s Association Tim White Kentucky Beef Council Chuck Crutcher Kentucky Beef Network ,LLC Bobby Foree Kentucky Beef Promotion Council Name: Chuck Crutcher Promotion Cow Country News /LAN Building Kentucky Beef Network VII Research, Foreign Scholarships KY Beef Promotions, LLC Consumer, Industry Leadership Program Jr. Cattlemen Assn. Eden Shale Farm Legislative Producer Comm

  39. The Advisory Board • Made up of representatives of different segments of the industry, i.e. Cow Calf, Stocker, Market Agency, Dealers, Dairy, others • Should consider programs that are on going with the National Beef Checkoff programs.

  40. 12/21/2011 Met with David Beck and Jeff Harper • Saturday January 14, 2012 KCA Convention • Beef Promotion resolution passed • Explore all possible avenues to insure that producers are positioned in the best possible way to recover funds. Resolution passed Friday February 24, 2012 • Executive committee reviews options and directs Exec. V.P. to move forward

  41. Example of how dollars could be allocated • Promoting and Stimulating • Consumer Marketing & Advertising • Consumer Advertising • Retail • Food service • Industry Information • Public Relations • Reputation Management • Issues Management • Research • Support beef quality research at Kentucky University’s in cooperation with national funds • Follow national research priorities • Market Development • Provide funds for support of the development and implementation of national and foreign beef promotion, Information, education, and research programs • Fund National programs through the Federation of State Beef Councils, Meat Export Federation, Cattlemen’s Beef Board • Education • Beef Quality Assurance • Production Programs • Youth Programs

  42. Where Do Checkoff Dollars Go? • Promotion • Research • Consumer Information • Industry Information • Foreign Marketing • Producer Communications

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