Value of Checkoff to Auction Markets
About 'Value of the beef checkoff to auction markets'
1) What is the role of an auction market in the Beef Checkoff Program?
Auction-market owners are not considered “beef producers” under the Beef Promotion and Research Act that authorizes the Beef Checkoff Program. But they most certainly play a critical role in the checkoff, serving as collecting points for dollar-per-head beef checkoff assessments accrued through their businesses. The efforts of these markets are vital to checkoff investments aimed at building demand for beef and beef products.
2) Do auction-market owners get paid for collecting the checkoff?
In the end, the “payment” for those collections services is much the same as the return on investment for the producers and importers who actually invest their dollars into the program and volunteer extensive time on checkoff boards and committees. That is this: Beef checkoff programs help maintain strong demand for beef and beef products, a benefit that extends to all segments of the beef chain, including those who participate as collecting points for the checkoff.
3) How does the checkoff benefit auction-market owners/operators?
You’ve heard it repeated in reference to our general economy time and again through the years, by way of the optimistic utterance made famous by John F. Kennedy: “A rising tide lifts all boats.” Likewise, if demand for beef producers’ products is higher, then there presumably will be more business – and more lucrative business – in buying and selling cattle. That’s why checkoff founders figured auction market owners would consider the checkoff program a boat worth climbing aboard.