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[Federal Register Volume 79, Number 217 (Monday, November 10, 2014)]
[Notices]
[Pages 66684-66686]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26552]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. AMS-LPS-14-0081]

Notice of Inquiry; Request for Comments on a New Beef Promotion, 
Research, and Information Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of Inquiry, request for comments.

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SUMMARY: The Agricultural Marketing Service (AMS) of the Department of 
Agriculture (USDA) requests public comments to inform its development 
of a beef promotion, research, and information order under the 
Commodity Promotion, Research, and Consumer Information Act of 1996 
(1996 Act). This request for comments offers the opportunity for 
interested individuals and organizations to provide views concerning 
provisions that would be included in an industry-funded promotion, 
research, and information program for beef and beef products. The 
proposed order would be in addition to the existing beef promotion and 
research program established under the Beef Promotion and Research Act 
of 1985 (1985 Act). A referendum on an order established under the 1996 
Act would be conducted 3 years after assessments begin to determine 
whether beef producers favor the program and if it should continue. A 
second referendum would be held within 7 years of the start of the 
program.

DATES: Written comments must be received by December 10, 2014.

ADDRESSES: Interested persons and organizations are invited to submit 
written comments by any of the following methods:
    Federal eRulemaking: At www.regulations.gov, follow the 
instructions for submitting comments.
    Mail: Comments may be sent to Beef Promotion, Research, and 
Information Order; Research and Promotion Division; Livestock, Poultry, 
and Seed Program; Agricultural Marketing Service, USDA, Room 2096-S, 
STOP 0249, 1400 Independence Avenue SW., Washington, DC 20250-0249.
    Instructions: All comments should reference the docket number, the 
date, and the page number of this issue of the Federal Register. In 
providing responsive comments concerning provisions of this program, 
please reference the heading below under which you are contributing 
information.
    Please be advised that all comments submitted in response to this 
notice will

[[Page 66685]]

be included in the record and will be made available to the public on 
the Internet at http://www.regulations.gov, including any personal 
information. Also, the identity of the individuals or entities 
submitting the comments will be made public.

FOR FURTHER INFORMATION CONTACT: Angie Snyder, Research and Promotion 
Division, by email at angie.snyder@ams.usda.gov, by fax at 202/720-
1125, or by phone on 202/720-5705.

SUPPLEMENTARY INFORMATION: 

Background

1985 Act Program

    The current beef promotion and research program (commonly called 
the Beef Checkoff Program) was authorized by the Beef Promotion and 
Research Act of 1985 (1985 Act), 7 U.S.C. 2901-2918, and became 
effective on July 18, 1986, when the Beef Promotion and Research Order, 
7 CFR Part 1260, was issued. Assessments began on October 1, 1986.
    The Beef Checkoff Program's goal is to strengthen the position of 
beef in the marketplace and to maintain and expand domestic and foreign 
markets and uses for beef and beef products. The program is funded by a 
mandatory assessment of $1 per head collected each time cattle are 
sold. All producers owning and marketing cattle, regardless of the size 
of their operation or the value of their cattle, must pay the 
assessment. A comparable assessment is collected on all imported 
cattle, beef, and beef products. Assessments under this program, which 
total about $80 million annually, are used to fund programs of 
promotion, research, and information that are carried out under federal 
oversight
    This program is administered by the Cattlemen's Beef Promotion and 
Research Board (CBB) comprising approximately 100 domestic producer and 
importer members. Each year, the Secretary of Agriculture appoints 
about one-third of all CBB members to 3-year terms from cattle 
producers and importers nominated by eligible industry organizations.
    Annually, CBB elects 10 members to a Beef Promotion Operating 
Committee (Operating Committee). The other 10 members of the Operating 
Committee are members of the Federation of State Beef Councils, which 
is a division of the National Cattlemen's Beef Association. The 
Operating Committee is responsible for developing budgets; approving 
projects of promotion, research, and information; and awarding 
contracts on behalf of the Beef Checkoff Program.
    CBB employs a staff with offices in Centennial, Colorado.

Working Group Meetings

    For more than 3 years, a Cross-Industry Working Group (CIWG, also 
known as the Beef Checkoff Working Group and the Beef Checkoff 
Enhancement Working Group) made up of a number of cattle industry and 
agricultural organizations met to identify ways to come to agreement on 
how to bring additional resources to the Beef Checkoff Program, 
including whether to amend the existing program under the 1985 Act, to 
create a new program under the Commodity Promotion, Research, and 
Information Act of 1996 (1996 Act), 7 U.S.C. 7411-7425, or some other 
action. While producer attitude surveys show that support for the 
current program is high and indications are that most support an 
increase in the assessment rate, concerns have nevertheless been 
expressed about the structure of the program as contemplated by the 
1985 Act and a desire by some that the Beef Checkoff Program structure 
be amended as a prerequisite for support for an increase in 
assessments.
    CIWG members agreed that the current Beef Checkoff Program was 
underfunded to meet its long-range plan, but they did not settle on any 
governance changes. They did, however, request for USDA to amend the 
Beef Promotion and Research Order to allow organizations created since 
1985 to contract with the Beef Checkoff Program. USDA completed this 
regulatory action in August 2012.
    Since the initial meeting, the CIWG met several times, and unable 
to come to a recommendation, disbanded in June 2013. After disbanding, 
some organizations that were a part of the CIWG supported a proposal to 
develop a new beef program under the 1996 Act to limit any one 
organization's control over the direction of checkoff dollars. Other 
organizations that were a part of the CIWG supported keeping the 
program under the 1985 Act or establishing new beef-specific 
legislation.
    At the direction of Secretary Thomas Vilsack, the CIWG reconvened 
in early 2014 and appointed a facilitator. The group last met in July 
2014 in Washington, DC, and identified a number of ways to enhance the 
current Beef Checkoff Program, including changing the nominating 
process to allow associations a greater say in who serves on the Beef 
Promotion Operating Committee, which directs the projects under the 
Beef Checkoff Program; increasing the $1.00-per-head assessment by an 
additional, refundable $1.00; holding periodic requests for a 
referendum on the Beef Checkoff Program at local Farm Service Agency 
county offices; and having CBB staff take the lead in running Beef 
Checkoff committee meetings, which are jointly populated by both CBB 
members and members of the Federation of State Beef Councils 
(Federation), to address concerns about any one organization running 
the meetings.
    Shortly thereafter, one organization withdrew from the CIWG, 
expressing belief that the actions were unlikely to result in the 
desired reform. The organization that withdrew from the CIWG further 
recommended that USDA create a new beef checkoff program under the 1996 
Act.
    At a meeting of most of the members of the CIWG on September 30, 
2014, Secretary Vilsack announced his intention to bring more resources 
to beef industry research and promotion efforts by promulgating an 
order for a new program under the authority of the 1996 Act. The new 
program would operate concurrently with the Beef Checkoff Program 
already in place under the authority of the 1985 Act and would seek to 
address the beef industry's concerns about the structure of the current 
Beef Checkoff Program. A new checkoff program would serve as the basis 
of support for increased assessments.
    Thus far, the CIWG has not made a recommendation on a path to 
enhance the Beef Checkoff Program through amendment of the 1985 Act, 
which would require Congressional action.

Questions & Answers

Why is this action being taken?

    To address general industry recognition of a need to increase 
funding for beef promotion and research but having no discretion to 
enhance assessments under the 1985 Act, USDA is developing a new Beef 
Promotion, Research, and Information Program authorized under its 
existing authorities granted by the 1996 Act. The program would enhance 
available resources, which would help the beef industry address 
important issues such as exports, beef demand, nutrition, and consumer 
information. As a result, additional resources could help increase 
demand for beef both domestically and internationally, thus benefitting 
cattle producers and the domestic beef industry.

Does the beef industry have a say?

    Yes. First, USDA is seeking comments before drafting a proposed 
order under the 1996 Act. Second, USDA will seek comments on a proposed 
order.

[[Page 66686]]

Would this new program be subject to referendum?

    Yes. Within 3 years following USDA's issuance of a final order, a 
referendum would be conducted among eligible beef industry entities to 
determine whether they favor continuation, termination, or suspension 
of the program. If the referendum passes, the new program would 
continue, with a second referendum held within 7 years of the start of 
the program. If the initial referendum fails, the program would be 
terminated.

What happens to the Beef Checkoff Program that was established under 
the 1985 Act?

    Nothing; the current Beef Checkoff Program would continue. This 
action is separate from the Beef Promotion and Research Order (7 CFR 
Part 1260) established under the 1985 Act. The 1985 Act program would 
continue to run until beef producers and importers vote in a referendum 
to terminate the program. As provided by the 1985 Act, USDA would 
conduct a referendum on the request of a representative group 
comprising 10 per cent or more of cattle producers to determine whether 
cattle producers favor the termination or suspension of the program. 
More information regarding the referendum process authorized by the Act 
of 1985 is available here: http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5108482.
    The proposed program to be implemented under the 1996 Act would run 
in addition to the current Beef Checkoff Program, and assessments 
collected under the new program would be handled under separate 
authority. Projects and funding would be determined by provisions 
established under the new order.

Comment Procedures

    In your comments, please reference the heading(s) under which you 
are contributing information. USDA is specifically seeking comments 
addressing the questions listed below.
    1. Who should be assessed?
    2. What should be the board structure?
     Who is eligible to serve?
     Should there be a relatively large delegate body appointed 
by the Secretary that would elect and recommend from within itself a 
smaller board?
     What should be the size of the board?
     What should be the term of office?
    3. How should the board be selected?
     Who may nominate eligible candidates to serve?
     What should be the nomination and selection process?
    4. What should be the powers and duties of the board?
    5. Who has decision-making authority?
     Should funding decisions be made by the full board or a 
smaller body elected from within this board?
     Should funding decisions be made in conjunction with other 
organizations such as the Federation of State Beef Councils or the 
current Cattlemen's Beef Promotion and Research Board?
    6. How should the assessment rate be determined?
     Should the assessment be a specified amount, a percent of 
value, or an amount determined by board?
     If a specified amount or a percent of value, should there 
be provisions for adjustments to the rate by the board, and without 
subsequent producer referendum?
     Should there be a de minimis exemption for certain size 
operations or classes of cattle or beef?
     Should there be temporary or permanent provisions for 
refunds of assessments?
    7. How should assessments be collected?
     Should the States or the national board collect the 
assessment?
     Should the assessment be levied at all points of sale, at 
slaughter, or at some other time?
    8. When should the referenda be conducted?
    Comments that do not address these topics or topics closely 
associated with the structure of a new beef research and promotion 
order under the authority of the 1996 Act may be deemed unresponsive or 
beyond the scope of this notice.
    USDA will consider written comments in developing a Beef Promotion, 
Research and Information Order that provides for a promotion, research, 
and information program for beef and beef products under the 1996 Act. 
The new program would operate concurrently with the Beef Checkoff 
Program authorized under the authority of the 1985 Act.

    Dated: November 4, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-26552 Filed 11-7-14; 8:45 am]
BILLING CODE 3410-02-P
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