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Promoting Agriculture: Farmers, the State, and Checkoff Marketing, 1935–2005

Published online by Cambridge University Press:  08 November 2016

Abstract

This article provides a historical overview of the development of U.S. government-mandated commodity promotion. This form of promotion, known colloquially as the “checkoff,” is responsible for such memorable slogans as “Beef: It's What's for Dinner,” as well as research intended to boost consumption of agricultural products. The article argues that checkoffs represent an associational form of governance in which private organizations achieve public aims. Though they have been frequently challenged in courts and have garnered scrutiny from public health activists, checkoffs have been a durable form of agricultural regulation because they hide the heavy hand of government with the rhetoric of markets and self-help.

Type
Research Article
Copyright
Copyright © The President and Fellows of Harvard College 2016 

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References

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40 R. Flake Shaw to Gentlemen, 19 Feb. 1947, box 1, folder 1, North Carolina Farm Bureau Papers, North Carolina State University Special Collections, Raleigh, N.C. Today, a similar situation exists in which the major meatpackers enthusiastically support the pork and beef checkoffs—sometimes more enthusiastically than producers themselves.

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47 “Wool Checkoff Dispute,” 7; “Sheep Farmers Vote Heavily for ‘Checkoff,’” Wall Street Journal, 7 Oct. 1959, 28.

48 Cotton Research and Promotion Program: Hearings on H.R. 12322 Before the House Comm. on Agriculture, 89th Cong. (1966), 73.

49 Williams and Capps, “Measuring the Effectiveness,” 73–78.

50 Harry M. Kaiser, “An Economic Analysis of the Cattlemen's Beef Promotion and Research Board Demand-Enhancing Programs,” Report to the Cattlemen's Beef Board, 25 June 2014, accessed on 15 May 2016, https:// www.beefboard.org/evaluation/files/ROI%202014/FINAL%20REPORT(1).pdf. Kaiser, an agricultural economist at Cornell who directs the university's Commodity Promotion Research Program, was hired by the Beef Board to perform an econometric study of the program's performance. Other evaluations have estimated slightly lower, but still substantial, returns. Ronald Ward, an agricultural economist, estimated returns from the checkoff dollar at $5.55. It should be noted that many studies evaluating the efficacy of checkoffs, including the two cited here, are commissioned by the very commodity boards that administer checkoff programs. Williams and Capps, “Measuring the Effectiveness,” 73.

51 Forker, Olan D. and Ward, Ronald W., “Commodity Checkoff Programs: A Self-Help Marketing Tool for the Nation's Farmers?Choices: The Magazine of Food, Farm, and Resource Issues 8, no. 4 (1993): 21Google Scholar.

52 Ibid.

53 Producer-Funded Livestock Research and Promotion Programs: Hearing Before the Subcomm. on Livestock of the Comm. on Agriculture, House of Representatives, 103rd Cong. 27 (1993).

54 Ibid.

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56 Hubert H. Humphrey, Food and Fiber as a Force for Freedom, report to Senate Comm. on Agriculture and Forestry, at 2 (Washington, D.C., 1958).

57 Agricultural Trade Act of 1978: Hearings Before the Subcomm. on Department Investigations, Oversight, and Research of the Comm. on Agriculture, House of Representatives, 95th Cong. 64 (1978).

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61 USMEF, “Southwest Barbecue Team Delivers Flavor to Japanese Foodservice Industry, Consumers,” accessed 1 Sept. 2016, https://www.usmef.org/news-statistics/member-news-archive/southwest-barbecue-team-delivers-flavor-to-japanese-foodservice-industry-consumers.

62 Geoffrey Becker, “Federal Farm Promotion (‘Check-Off’) Programs,” CRS Report to Congress No. 95-353, Congressional Research Service, Library of Congress, 20 Oct. 2008, http://www.nodpa.com/checkoff_2008%20report%20on%20check%20off%20programs.pdf.

63 Producer-Funded Livestock Research and Promotion Programs: Hearing Before the Subcomm. on Livestock of the Comm. on Agriculture, House of Representatives, 103rd Cong. 27 (1993).

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68 Parke Wilde, “USDA Reports on Pizza Consumption and on Dairy Checkoff Program Initiatives to Increase Pizza Demand,” U.S. Food Policy (blog), 7 Feb. 2014, http://usfoodpolicy.blogspot.ca/2014/02/usda-reports-on-pizza-consumption-and.html.

69 Michele Simon, “Whitewashed: How Industry and Government Promote Dairy Junk Foods,” Eat Drink Politics, June 2014, http://www.eatdrinkpolitics.com/wp-content/uploads/SimonWhitewashedDairyReport.pdf.

70 Few studies investigate the overall outcomes of checkoff-funded research. One analysis of research funded by the dairy checkoff “did not find consistent evidence that checkoff funded projects were more likely to support an obesity prevention benefit from dairy consumption.” But, as the authors note, “industry sources are more likely to fund research on certain questions, which hold promise for results that are more favorable to the industry.” By merely asking certain types of questions, checkoffs can still shape the kind of scientific knowledge produced. Parke Wilde, Emily Morgan, Jesse Roberts, Andrea Schpok, and Tawny Wilson, “Relationship between Funding Sources and Outcomes of Obesity-Related Research,” Physiology and Behavior 107, no. 1 (2012): 175.

71 Beef Board, 1990 Annual Report, 17.

72 Ibid.

73 Beef Board, 1994 Annual Report 10: Strength Through Unity, accessed 1 Sept. 2016, http://www.beefboard.org/financial/files/CBB%20Annual%20Report%20FY1994.pdf.

74 Pork Checkoff, “Pork Checkoff Funded Research Grants,” accessed 1 Sept. 2016, http://www.pork.org/pork-checkoff-research/pork-checkoff-funded-research-grants.

75 The challenge to the Beef Board began in the late 1990s, when beef prices had fallen so low that many operators found it difficult to cover production costs. Ronald A. Parsons Jr., “Cattle on a Thousand Hills: Reflections on the Beef Checkoff Litigation,” South Dakota Law Review 57, no. 3 (2012): 431.

76 “Supreme Court Hears Case on Constitutionality of Ad Program,” Chicago Tribune, 9 Dec. 2004.

77 Pork Checkoff, Report of the National Pork Checkoff Nominating Committee to the National Pork Producers (Pork Act) Delegate Meeting (report prepared for National Pork Industry Forum, Kansas City, Mo., March 6–8, 2014), http://porkcdn.s3.amazonaws.com/sites/all/files/documents/NomBook2.pdf.

78 Smithfield Foods, “Animal Care Management,” in 2014 Sustainability and Financial Report, accessed 1 Sept. 2016, http://www.smithfieldfoods.com/integrated-report/animal-care/animal-care-management.

79 Edward Lotterman, “District Hog Prices Hit Historic Lows,” fedgazette, 1 Jan. 1999, https://www.minneapolisfed.org/publications/fedgazette/district-hog-prices-hit-historic-lows.

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81 Suspension and Termination of Orders, 7 U.S.C. § 4812(b)(1)(A).

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87 In some areas, the spread between yes and no votes was stark. In Iowa, which leads the nation in hog production, 60 percent of farmers voted against the checkoff.

88 “Hog Farmers Criticize Veneman for Not Terminating Checkoff,” High Plains Journal, 1 Jan. 2001.

89 “Brief for the petitioner,” Glickman v. Wileman Brothers & Elliott, Inc., 521 U.S. 457 (1997).

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92 United Foods, Inc. v. USDA, 197 F.3d 221 (6th Cir. 1999).

93 “Brief of amici curiae states of California, Colorado, Delaware, Michigan, Nebraska, Nevada, Ohio, Pennsylvania, and Washington in support of petitioners,” United States v. United Foods, Inc., 533 U.S. 405 (2001).

94 Michigan Pork Producers v. Campaign for Family Farms, 174 F. Supp. 2d 637 (W.D. Michigan, 2001).

95 Mark Champoux, “Uncovering Coherence in Compelled Subsidy of Speech Doctrine: Johanns v. Livestock Marketing AssociationHarvard Journal of Law and Public Policy 29, no. 3 (2005) 1107–17; The New York Times, hardly a routine observer of farm news, published two opinion pieces denouncing the pork checkoff in the wake of the Michigan Pork Producers case: “The Other Political Pork,” 10 Nov. 2002 and “Unconstitutional Farm Checkoffs,” 1 Nov. 2003.

96 Parsons, “Cattle on a Thousand Hills,” 432–33.

97 Ibid.

98 Beef Board, 2003 Annual Report, 12.

99 Beef Board, 2002 Annual Report, 3.

100 Ibid., 1.

101 Johanns v. Livestock Marketing Association, 544 U.S. 550 (2005).

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