Checkoffs crucial to ag industries – WP editorial

Reading Time: 2 minutes

Published: November 21, 2002

RECENT developments in the United States are a warning to people who

manage the money in research and promotion check-off funds paid by

Canadian farmers.

Florida voters recently passed an amendment to the state’s constitution

that will outlaw the use of gestation stalls for pregnant sows.

While Florida has few hog farms, the precedent has producers elsewhere

worried that well-funded and emboldened animal rights groups will press

their agenda with new vigour.

Meanwhile, the American hog industry is in danger of losing the funding

Read Also

A variety of Canadian currency bills, ranging from $5 to $50, lay flat on a table with several short stacks of loonies on top of them.

Agriculture needs to prepare for government spending cuts

As government makes necessary cuts to spending, what can be reduced or restructured in the budgets for agriculture?

it needs to properly respond to its animal rights critics.

Ironically, it is a group of producers who are cutting off the money.

Several groups that support small family farms have come together to

fight the pork check-off program.

The checkoff collects 40 cents for every $100 US of hog sales from U.S.

producers. The money is administered by a board and is spent on pork

promotion programs and research.

The program is credited with helping increase pork consumption by 21

percent since it began in the mid 1980s.

But the anti-checkoff groups say the money has not stopped the rapid

disappearance of small hog farms, has not boosted hog prices, has

supported industry consolidation and has benefitted mainly processors

and retailers.

They won a referendum to eliminate the checkoff but the vote had

irregularities and the secretary of agriculture instead made minor

changes.

The farmers then took it to court and have had success, but the matter

will probably be appealed.

An almost identical situation is playing out regarding the beef

checkoff.

These developments are particularly interesting for Canadians as the

cattle industry here begins a national, mandatory checkoff. Before

this, livestock checkoffs in Canada were a provincial undertaking.

Canadian beef checkoff administrators are optimistic that the new

arrangement will help the industry’s promotion of beef in domestic and

export markets.

But the American experience provides a warning that for long-term

success, those managing check-off funds in any part of agriculture must

stay in tune with the desires and needs of those who supply the money.

That is not easy, given the often divergent interests of big and small

producers and processors.

But it is important that these difficulties be overcome because

livestock industries need proper funding to keep up with society’s

changing demands.

As the Florida vote illustrates, many people are concerned about how

their food is produced and they can make life difficult for farmers.

Producers need well-funded industries to carry out research to ensure

animals are raised humanely and efficiently, and to deliver this news

to consumers. If not, better funded groups, like extreme animal rights

activists, will have the floor unopposed.

explore

Stories from our other publications