## Beef checkoff fees—mandatory, unavoidable, unstoppable—bleed ranchers dry while bankrolling the monopoly lobby working to destroy them.
*By Beef News | Research conducted 2026-02-03*
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**RESEARCH PARAMETERS**
– **Domain**: Regulatory Architecture + Monopoly Power
– **Tier**: VI (Monopoly Mask-Off) with Tier V (Policy Blindspot) sidebar – **Primary Sources**: Farm Action FOIA investigation (2024-2025), USDA AMS oversight guidelines, state auditor findings
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Every time a rancher sells a head of cattle in the United States, **one dollar vanishes**. Not to a thief. Not to a tax collector. To something worse: a government-mandated pipeline that funnels rancher money straight into the bank accounts of the very corporations driving them out of business.
It’s called the **beef checkoff program**. Ranchers have been forced to pay into it since 1985. More than **$1 billion in mandatory fees** have been extracted from independent producers—and the vast majority ends up in the hands of the [National Cattlemen’s Beef Association (NCBA)](https://www.beefboard.org/), a lobbying organization representing monopoly meatpackers like **Tyson, Cargill, JBS, and National Beef**.
[Checkoff funds comprise more than 70% of NCBA’s
budget](https://projects.propublica.org/nonprofits/organizations/840738973). In 2020 alone, NCBA collected **$45.6 million in checkoff
revenue**—money taken from ranchers who are bleeding out as their numbers collapse.
The U.S. has [lost half a million cattle
producers](https://www.nass.usda.gov/AgCensus/) since 1980.
## The Scam: Mandatory Fees, Voluntary Accountability
Here’s how the shell game works:
**Step 1**: Congress authorizes “Research & Promotion Programs” (checkoffs) under the guise of helping farmers pool resources for marketing campaigns like [“Beef. It’s What’s for
Dinner.”](https://farmaction.us/2023/04/12/checkoff-corruption/)
**Step 2**: The [USDA Agricultural Marketing Service
(AMS)](https://www.ams.usda.gov/rules-regulations/research-promotion) collects **$900 million annually** from farmers and ranchers across 22 commodities—beef, pork, dairy, soy, eggs.
**Step 3**: The government hands oversight to checkoff “boards” that are supposed to remain **policy-neutral** and never lobby.
**Step 4**: Those boards immediately contract with corporate lobbying groups—which spend rancher money lobbying **against ranchers**.
The beef checkoff funnels cash to NCBA. The pork checkoff feeds the National Pork Producers Council. The dairy checkoff bankrolls Dairy Management, Inc., which [spent $6 million on NFL
partnerships](https://farmaction.us/2023/04/12/checkoff-corruption/) while **20,000 dairy farms shut down** between 2010-2020.
Independent rancher [Mike
Callicrate](https://nobull.mikecallicrate.com/) summed it up:
> “Out of this very facility, I used to sell to 20 meatpackers. That got down to zero.”
The checkoff didn’t save him. It helped **kill the buyers** who could’ve kept him in business.
## The Lobby That Ranchers Fund—Against Their Will
Let’s be clear about what NCBA does with rancher money:
### 1. **Killed Country of Origin Labeling (COOL)**
NCBA led the charge to [repeal Mandatory Country of Origin
Labeling](https://farmaction.us/2023/04/12/checkoff-corruption/) in 2015. If COOL were reinstated, independent ranchers could market **”Born, Raised, Slaughtered in the USA”** beef—a powerful
differentiator against JBS and Cargill’s imported, cartel-tainted product.
NCBA made sure that never happened.
### 2. **Crushed the GIPSA Fair Farmer Rules**
In 2010, USDA proposed the [Grain Inspection, Packers and Stockyards Administration (GIPSA)
rules](https://farmaction.us/wp-content/uploads/2022/04/The-Fall-of-Antitrust-the-Rise-of-Corporate-Power.pdf) to create a level playing field for independent ranchers competing against monopolies.
NCBA joined Big Ag monopolies in spending **$7.79 million to kill the rules**. They succeeded.
### 3. **Lobbied Against Climate Accountability**
A study in [Climatic
Change](https://insideclimatenews.org/news/02042021/meat-dairy-lobby-climate-action/) revealed that dairy and livestock lobbying groups—funded by checkoff dollars—spent millions defeating environmental legislation that would’ve applied equally to **all** producers.
Translation: **your checkoff dollars pay corporate lobbyists to block reforms** that might hurt Big Ag’s industrial model.
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## **POLICY BLINDSPOT: The Oversight Mirage**
*What Everyone’s Missing About “Government Speech”*
In 2005, the Supreme Court ruled in *[Johanns v. Livestock Marketing
Association](https://www.nytimes.com/2005/05/24/politics/justices-say-all-ranchers-must-help-pay-for-federal-ads.html)* that beef checkoff promotions are **”government speech”**—meaning ranchers can’t claim First Amendment protection against forced subsidization of messages they disagree with.
**Here’s the trick**: To win that case, **USDA testified under oath** that it maintains strict oversight of checkoff programs—preapproving budgets, plans, and even “every word” disseminated by checkoff boards.
> “Without such oversight claims, the case would’ve been ruled in favor of ranchers—and the mandatory fees would’ve ended.” > — Farm Action legal analysis
But a [2024-2025 FOIA investigation by Farm
Action](https://farmaction.us/investigation-reveals-usdas-failure-to-prevent-checkoff-program-abuse/) revealed **USDA lied**:
– **North Dakota Soybean Council**: Illegally spent **$85,000 in checkoff funds on lobbying**. USDA provided **zero documentation** of budget approval or oversight.
– **Montana Beef Council**: Required by a 2016 Memorandum of Understanding to submit all promotional materials for USDA
pre-approval. Records show compliance through 2020—then **nothing**. USDA appears to have stopped enforcing its own agreement.
– **Iowa-Missouri Soybean programs**: Funded a “Grassroots Fellowship” that explicitly trains participants in “hands-on work with policy, government and legislative processes”—textbook lobbying. USDA’s only action? Asked them to **change the program’s name**. The actual lobbying activities continued.
**The mechanism**: USDA claims oversight authority to shield checkoffs from First Amendment challenges—then **abandons that oversight** once the courts rule in their favor.
**Who profits**: Corporate lobbying groups gain a permanent, mandatory revenue stream they couldn’t secure through voluntary membership.
**Who loses**: Independent ranchers forced to fund the destruction of their own market access.
**The strategic reframe**: This isn’t “lax oversight.” It’s
**regulatory cover for legalized racketeering**.
—
## The Numbers Don’t Lie: Checkoffs Fund Consolidation, Not Survival
**Beef checkoff collections (2021)**: [$70
million](https://www.beefboard.org/2021-annual-report/financials-2021/) **NCBA checkoff revenue (2020)**: $45.6 million
**U.S. cattle producers lost (1980-2017)**:
[500,000+](https://www.nass.usda.gov/AgCensus/)
**Dairy checkoff collections (2021)**: [$364
million](https://www.usda.gov/sites/default/files/documents/24-2023-AMS.pdf) **Dairy Management, Inc. revenue from checkoff**: [$110
million](https://www.usdairy.com/getmedia/7da9b191-ab13-4fbf-9093-125c77260254/2021-Annual-Report-FINAL.pdf) **U.S. dairy farms lost (2010-2020)**:
[20,000](https://farmaction.us/2023/04/12/checkoff-corruption/)
**Pork checkoff collections (2021)**: [$94
million](https://www.usda.gov/sites/default/files/documents/24-2023-AMS.pdf) **U.S. pig farms lost since 1990**:
[70%](https://www.ers.usda.gov/topics/animal-products/hogs-pork/sector-at-a-glance/)
The pattern is unmistakable: **checkoff programs don’t save farmers. They fund the lobby groups accelerating consolidation.**
## The Revolving Door: When the Secretary Works for Big Dairy
The most brazen example of checkoff corruption involves **Tom Vilsack**, current USDA Secretary.
After serving as Agriculture Secretary under Obama (2009-2017), Vilsack landed the **highest-paid position at the nation’s largest checkoff program**: CEO of the U.S. Dairy Export Council—a role funded by mandatory dairy checkoff fees.
His combined compensation from checkoff-funded roles? [**$1.5 million**](https://farmaction.us/2023/04/12/checkoff-corruption/).
In 2021, Vilsack returned to USDA as Secretary—the same agency responsible for **overseeing the programs that paid him**.
When asked why he won’t ban [JBS from USDA
contracts](https://www.meatpoultry.com/) despite its criminal bribery convictions, Vilsack’s answer was telling:
> “Removing a firm from government-wide procurement would potentially impair competitive choice for the taxpayer.”
**Translation**: The monopoly is too big to fail. Independent ranchers are too small to save.
## What Ranchers Think About Checkoffs
In 2018, the cattle industry magazine *Drovers* polled ranchers: **”Does the beef checkoff help stimulate beef demand and support your cattle business?”**
More than half said **no**.
The comments section erupted with ranchers furious about **mismanaged funds, collusive relationships, and corporate greed**. [*Drovers* deleted the poll](https://farmaction.us/2023/04/12/checkoff-corruption/).
In 2000, **30,000+ hog farmers** voted in a referendum to **end the pork checkoff**. They won—by five percentage points.
The National Pork Producers Council challenged the result in court. USDA Secretary Ann Veneman **overturned the referendum**, forcing farmers to keep paying.
Bill Bullard, CEO of [R-CALF USA](https://www.r-calfusa.com/), the independent cattle ranchers’ organization, [summarized the
scam](https://prospect.org/power/2023-04-04-big-ag-lobbies-against-farmers/):
> “Without the checkoff dollars, you wouldn’t have the NCBA in its current form, so it’s ridiculous to take at face value that this lobbying firewall really works.”
## The Corruption Catalog
Checkoff abuse isn’t theoretical. It’s documented, prosecuted—and ongoing:
– **2010 beef checkoff audit**: Found NCBA improperly spent
[**$200,000+ on lobbying and overseas
vacations**](https://farmaction.us/2023/04/12/checkoff-corruption/) in just **nine days**. USDA conducted a full audit—then **refused to release it**, claiming it would “cause embarrassment.”
– **Oklahoma Beef Council**: The accountant [**embezzled
millions**](https://www.oklahoman.com/story/business/2018/01/05/former-accountant-for-oklahoma-beef-council-sentenced-in-multi-million-dollar-embezzlement-scheme/60551485007/) to open a clothing boutique. Theft went undetected for years—proof of **zero oversight**.
– **American Egg Board**: Hired PR firms to [**sabotage a plant-based
mayo startup**](https://www.latimes.com/business/la-fi-egg-board-investigation-20161007-snap-story.html), with executives emailing about “putting out a hit” on the founder. Federal investigators found the campaign violated checkoff guidelines. CEO retired; no criminal charges.
– **North Dakota Soybean Council (2023)**: State auditor found [**$85,000 in illegal
lobbying**](https://www.nd.gov/auditor/news/auditors-office-finds-north-dakota-soybean-council-misused-grant-funds-lobbying-activities)—on legislation to **exempt the council from future state audits**. USDA provided no evidence of prior budget approval.
## The Solution: Make Checkoffs Voluntary—Or End Them
There’s a bill in Congress right now that would restore integrity to checkoff programs. The [**Opportunities for Fairness in Farming (OFF)
Act**](https://farmactionfund.us/wp-content/uploads/2023/03/OFF-Act-Fact-Sheet-03.2023.pdf) would:
– **Prohibit checkoff programs from contracting with lobbying organizations** – **Ban conflicts of interest** among checkoff board employees and agents – **Require full transparency**: public budgets, expenditures, and contracts – **Mandate periodic compliance audits** by the USDA Inspector General
If checkoffs can’t be reformed, they should be **terminated**. Federal law already grants USDA the authority to [declare checkoff programs “ineffective” and suspend
them](https://uscode.house.gov/view.xhtml?path=/prelim@title7/chapter101&edition=prelim).
Farm Action is calling on USDA Secretary Vilsack to:
1. **Immediately halt all checkoff approvals** until full compliance audits are completed and made public
2. **Penalize non-compliant programs** and demand corrective action 3. **Work with Congress to pass the OFF Act**
4. **Terminate checkoffs if they cannot be reformed**
## The Bottom Line
This isn’t a “both sides” story. This is **legalized racketeering**:
– Ranchers are **forced** to pay.
– The money flows to **corporate lobbies** that work against ranchers. – USDA **claims oversight** to shield the system from legal
challenge—then **provides no oversight**.
– Monopoly packers **consolidate power** while independent producers **go extinct**.
The beef checkoff isn’t funding “Beef. It’s What’s for Dinner.”
It’s funding **”Monopoly. It’s What’s for Breakfast, Lunch, and Dinner.”**
—
**Want to buy beef from ranchers who aren’t funding their own extinction?** Find independent producers at
**[BeefMaps.com](https://beefmaps.com)**—where your dollar goes to the rancher, not the cartel.
—
## PRIMARY SOURCES
– [Farm Action: Checkoff
Corruption](https://farmaction.us/2023/04/12/checkoff-corruption/) – [Farm Action FOIA Investigation: USDA’s Failure to Prevent Checkoff
Abuse](https://farmaction.us/investigation-reveals-usdas-failure-to-prevent-checkoff-program-abuse/) – [USDA AMS: Research & Promotion
Programs](https://www.ams.usda.gov/rules-regulations/research-promotion) – [USDA: Guidelines for AMS Oversight of Commodity Research and Promotion Programs
(PDF)](https://www.ams.usda.gov/sites/default/files/media/AMSRPGuidelines.pdf) – [ProPublica: NCBA Tax
Filings](https://projects.propublica.org/nonprofits/organizations/840738973) – [USDA Census of Agriculture](https://www.nass.usda.gov/AgCensus/) – [North Dakota State Auditor: Soybean Council Misuse of
Funds](https://www.nd.gov/auditor/news/auditors-office-finds-north-dakota-soybean-council-misused-grant-funds-lobbying-activities) – [New York Times: Supreme Court Checkoff
Ruling](https://www.nytimes.com/2005/05/24/politics/justices-say-all-ranchers-must-help-pay-for-federal-ads.html) – [The American Prospect: Big Ag Lobbies Against
Farmers](https://prospect.org/power/2023-04-04-big-ag-lobbies-against-farmers/)
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*Research conducted under the Beef Research Protocol | Tier VI (Monopoly Mask-Off) with embedded Tier V (Policy Blindspot Detector)*
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