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  • From: "Rick Hopkins" <rdhopkins AT americanpasturage.com>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: RE: [Market-farming] Patterns in direct market sales of meat
  • Date: Fri, 3 Jan 2003 23:38:34 -0600

First of all it is Rick H. not Steve H.

Due to my high exposure with agency, legislators, and continuous battle with
the commodity groups I pay the checkoff as required. I cannot afford to be
used for an example. Same applies for the sales tax which most do not pay.

You somehow have the uncanny handicap of reading something into others
posts. I do not support the commodity groups, I am in continuous conflict
with them from pork, dairy, beef, poultry, and even some of the grain crops.
What I said was I was in favor of the beef checkoff if the grass farmers
were to get their share.

You obviously have the same trouble reading the law as it is perfectly clear
as to when checkoff collection is required and who is to pay it. It does
give the option of the buyer paying it, but if he defaults the seller is at
risk.

I think it humorous that you completely missed the point on the vaccinations
and branding of dairy animals. If I had my way, all of the expended
chemical laden carcasses would be disposed of by incineration on the farm
they died on instead of ending up in our kid's stomachs under the golden
arches.

Rick H.

-----Original Message-----
From: market-farming-admin AT lists.ibiblio.org
[mailto:market-farming-admin AT lists.ibiblio.org]On Behalf Of Rick
Williams
Sent: Friday, January 03, 2003 6:32 PM
To: market-farming AT lists.ibiblio.org
Subject: RE: [Market-farming] Patterns in direct market sales of meat


Steve Hopkins wrote:
> The checkoff must by law be reported/paid monthly, at least in Missouri.
> Even if you do not have any animals harvested in a given month, a report
> must be filed. Contact your state agency that administers the
> checkoff for
> details. The penalties for not paying are retroactive and are on
> a per head
> basis. "Persons in non-compliance with the Act and Order are subject to a
> civil penalty of up to $5,500 per transaction, plus un-remitted checkoff
> dollars and interest."

From what I have been able to gather, almost no one is paying this fee
except when cattle are sold at sales barns, dealers, etc. Also, no one is
being prosecuted except the high visibility ranchers out west who have been
fighting this for years.

I have not seen any monthly requirement and certainly not a requirement to
submit anything when animals have not been sold. The law always seems a bit
gray to me in terms of the final "sale." Since it is more in the buyers
court than the seller, technically a split half buyer or other larger size
buyer is responsible for paying this fee. Needless to say, this NEVER , EVER
happens. And it doesn't really seem clear to me that if you process an
animal, for individual cuts from the farm, that you would pay the fee. But,
yes it is supposed to be paid from what they tell us.

It was set up for regular commodity beef as you can guess. It is CONTROLLED
by the NCBA and if you wondered if those of us who direct market are not
real pleased with them, you would be right. The NCBA just got their fingers
slapped for illegal activity. Once these "checkoff" systems are in place to
benefit a part of the industry ... the part with all the cards and power,
they are not happy to see it go away. It did go away for the mushroom
farmers though. But not for dairy, which the U.S. Supreme Court has
determined is already so much involved with special treatment by the
government, that they can be collectively be controlled through the
checkoff.

For those of us who do pay the fee, it is really annoying that we know many
(most?)direct marketers and farmers selling cattle to each other do not.

If the system was at least set up to require an annual vote up or down, it
would not be so bad. But the controlling interests that you support do NOT
even want a vote because they are terrified that the increase of small
farmers (way more than the shrinking big farmers) will turn the tide and
vote the checkoffs down. Each farmer has one vote you know. IF they allow a
vote.

The pork farmers tried to have a vote and when Dan Glickman was in office,
did allow it but in the end it was somehow disallowed after the farmers
rejected the pork checkoff. The system in my view is morally corrupt in the
extreme.

> WISCONSIN BEEF COUNCIL
> John Freitag
> 680 Grand Canyon Dr.
> Madison, WI 53719
> Office - (608) 833-7177 Fax - (608) 833-4725
> jwf AT beeftips.com
> www.beeftips.com

I recently attended one of our farm classes (we graduated after the five
years, but Judy wanted to take some additional classes) and one of the
speakers was ... John Freitag. His main point was that dairy farmers will do
better if they insure that they never inject into areas other than the neck,
don't brand to damage the hide etc. Needless to say, this is completely
opposite the truth. Which I pointed out.

A number of people did clap and had even some muted cheering. Can you
imagine this kind of thinking? In fact, the effect he claimed is the
opposite of what he was saying. As long as you can not ID the animals origin
and pay the farmer accordingly, it is to the farmers BENEFIT, not DETRIMENT,
to have defective carcasses. This takes product off the market as unsaleable
thereby making a live animal worth more. If all farmers had pristine
carcasses, and pristine hides, guess what would happen? It would increase
yield to the processors and increase the amount of meat in the market and
only a fool could not see the price would go down for that commodity. And
yet he had NO CLUE! He could not understand this basic Econ 101. And these
are the leaders!! It is very, very sad.

He did admit though that folks like us who direct market a non-commodity
product, would not benefit as much from the checkoff. In fact, we could be
harmed from it since we are using money that should be going for promoting
what EVERY marketing expert will tell you ... developing your own brand
identification. Commodity is counterproductive for us. What we are is NOT
commodity and yet we are paying the commodity folks for their marketing of
their product.

Sincerely,

Rick Williams
Misty Ridge Farm
Direct marketed dairy beef and produce
(also dairy heifers and beef stockers)
Viroqua, WI


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