Reciprocity

As was expected under USDA changes, Brazil can now send fresh beef to the United States, a move that will probably  open other markets, such as Japan, to them.

Besides concerns about Foot and Mouth disease, which is endemic in that nation, USDA has admitted that at least in the short term, there is little likelihood of reciprocity in markets, as Brazil dumps an expected NINE_HUNDRED MILLION DOLLARS worth of beef on our markets.

In return we get....$900 million worth of their meat in competition with our own farmers and ranchers, a chance to share a devastating disease........and not much else.

Hooray..... Do you miss COOL yet?

The Christmas Tree Tax

Was in fact not a tax and was never intended to be one. It was a checkoff program. Checkoffs are producer funded and driven generic advertising programs intended to increase sales of various farm products. Christmas tree growers wanted to get on board with this concept to help real trees maintain their market share against artificial ones. Here is a pretty good story about it.

Such programs are common among various commodities. Here is a bit on the soybean checkoff which explains some parts of the concept.

There is a beef checkoff...a buck a head for every cow or calf sold for beef in the nation. Beef, it's whats for dinner, is an example of the resulting advertising campaigns.

There have been times when that beef checkoff has really ticked me off. Say when calves are bringing five bucks and out of that you pay the checkoff and commission and get nothing back at all. However, all those new cuts of beef you see, flat iron, etc....developed and promoted with beef checkoff dollars, in the interests of making beef more appealing. Plus lots of recipes and other programs are thusly funded.

There is a dairy check off too. Fifteen cents per hundred pounds for every bit of milk that leaves a dairy farm. We do not get to pass that along to consumers either, because our price is set by government formula, which does not take it into account. If it is in any way a tax, it is a tax on us, not on the folks who drink our product.

It has also irritated me on occasion, such as when it spent our money to help the EPA fund air quality studies on dairies. Seemed dumb at the time and seems even dumber now. However it also funds the wonderful Dairy Princess program and partners with grocery stores to better display our products, schools to convince students to drink it, and restaurants to use in new offerings to keep folks using it in drinks and as cheese on burgers. Here is a link to the local "chapter".

All three of the Northview crew served as dairy ambassadors on various Dairy Princess courts. They learned a great deal and spent a lot of time at various public affairs meeting consumers face to face and explaining about the value of dairy products in the diet. It was good for them and good for the industry. And it put faces on farmers in a very real and personal way for thousands of non-farm customers.

I have been appalled over the past couple of days by the sheer ignorance of some pundits on the topic of the Christmas tree checkoff. They are to be excused for not understanding the whole checkoff concept when the furor began. They are not to be excused for not doing their homework before they sounded off. I give them an F in research.

I am kind of on the fence on the whole checkoff concept though. It makes for splashy advertising and in the case of the dairy and beef checkoffs has come up with some really popular campaigns. However, it has pretty much been proven that such generic advertising has very little benefit for individual farmers and when it gets down to the nitty gritty that is who is paying for it.