CENTENNIAL, COLO. (Dec. 13, 2005) – The U.S. Department of Agriculture has filed an administrative action against Lancaster, Pennsylvania livestock dealer Dennis Kolb for allegedly violating the Beef Promotion and Research Act and Order by failing to remit required beef checkoff assessments, according to Steve Barratt, director of collections and compliance for the Cattlemen’s Beef Promotion and Research Board.

USDA alleges that Dennis Kolb violated the Order by not remitting the $1-per-head beef checkoff repeatedly over a period of several years, Barratt said. USDA’s complaint seeks an administrative order requiring Kolb to remit all unpaid assessments and late payment charges, to comply with the Beef Order in the future, and to pay civil penalties for each violation. Failure to comply with the Beef Act and Order can result in fines of as much as $5,500 per violation.

Barratt says the charge by USDA represents a last resort to collect checkoff assessments required by law. Though a few cattle producers in various states have been cited for failure to pay the checkoff at times, most of those who willfully or accidentally fail to pay the assessment end up agreeing to comply before the process reaches this administrative level.

The case involving Kolb addresses that producer’s nonpayment of the beef checkoff on repeated occasions between 1998 and 2003. Since then, the Cattlemen’s Beef Board and the USDA made repeated attempts to prompt Kolb to comply with the Act and remit unpaid assessments, to no avail.

“Unfortunately, we have not been able to collect the required checkoff payments from Mr. Kolb, so the USDA has chosen to move forward by filing a complaint,” Barratt said.

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The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

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