Alberta cattle producers are becoming interested in the idea of asking the province’s brand inspection agency to collect beef cattle checkoffs.
Cattle producer Darren Hebbes proposed a resolution to that effect during a recent Alberta Beef Producer fall producer meeting in Camrose.
He said once the checkoff becomes refundable, it should be collected through an impartial third party rather than ABP, and felt Livestock Inspection Services would be the ideal candidate.
The motion was defeated, but it’s not the first time the idea has been proposed and it’s likely not the only fall meeting where it will be presented.
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LIS general manager David Moss said his organization presented the idea to ABP a few years ago, revised it two years ago and dusted it off again when it was announced the mandatory nonrefundable checkoff would become refundable.
Moss said LIS employees are already at packing plants, auction markets and community pastures where cattle are inspected and sold.
“We invoice for the inspection. We have a good grasp of collection and we have a billing and collection process in place,” he said. “We do invoice for collection and don’t passively wait for money to show up.”
Moss said LIS is not actively taking part in the collection debate but is willing to lend a hand if it is deemed the logical choice to collect the $3 per head fee.
“We’re a passive participant in this discussion.”
Under government regulations, ABP must consult with producers on how the process will work and make recommendations to Alberta Agriculture’s marketing council.
In a consultation paper, ABP is suggesting producers who want a refund must request it within two months of selling their cattle.
“We’re trying to come up with a fair way of dealing with the refund,” said ABP general manager Rich Smith.
“We’re not trying to make it too hard for producers who want a refund.”
Under ABP’s proposal, it would continue to collect the $3 per head checkoff, less the five cents per head kept by auction markets for handling the fee.
Smith said he doesn’t see why a government agency would be asked to collect producer money for an existing producer organization.
“We think we’re the more appropriate organization to collect it.”
Western Stock Growers Association president Bill Hanson said his group wants LIS to collect and administer the checkoff.
“LIS has all the infrastructure in place.”
Hanson said LIS could add a box to existing livestock manifests that producers could check to indicate whether they wanted to pay the checkoff.
“It makes it easier for producers to make a decision. It makes it more user friendly.”
Hanson said a simple check mark may make it too easy for producers to ask for a refund but added money spent on hay or parts rather than cattle marketing is still money spent on agriculture.
Neil Peacock, a livestock producer and member of the National Farmers Union, also believes cattle producers need a simple system to request their cattle checkoff.
The ABP refund proposal is designed “so producers get frustrated and throw up their hands,” he said. “It needs to be a simple process. Producers shouldn’t have to apply, apply and reapply.”
Mike Pearson, manager of corporate affairs with the Alberta Marketing Council, which is in charge of commissions, said the regulations say the checkoff must be collected and then refunded.
None of the 10 existing commissions have a passive system where the checkoff is not collected first.
“No organization has an instant refund.”
He said ABP’s proposal would be the quickest turn around system. Other commissions keep the money for six months or a year so that producers can judge the organization for a longer period before asking for a refund.
Pearson said allowing beef producers to receive an instant refund on their checkoffs would open up discussions with other commodity groups.
“The other commissions’ model is pay the service charge and then ask for a refund.”
