Federal Farm Promotion ('Check-Off') Programs (CRS Report for Congress)
| Release Date |
Revised Oct. 20, 2008 |
| Report Number |
95-353 |
| Authors |
Geoffrey S. Becker, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The U.S. Supreme Court in 2005 affirmed the constitutionality of the so-called beef check-off program, one of the 18 generic promotion programs for agricultural products that are now active nationally. Supporters view check-offs as economically beneficial self-help activities that need minimal government involvement or taxpayer funding. Producers, handlers, and/or importers are required to pay an assessment, usually deducted from revenue at time of sale -- thus the name check-off. However, some farmers contend they are being 'taxed' for advertising and related activities they would not underwrite voluntarily. The Supreme Court's decision to uphold the beef check-off is considered significant for the future of the other programs, although the Court left open the possibility of additional challenges. [â¦] Interest in more federally mandated programs has increased over the past several decades, as commodity groups have sought new ways to support their products. Such groups view the programs as economically beneficial farmer self-help activities requiring minimal federal funding. USDA's Agricultural Marketing Service (AMS) has some administrative and oversight responsibilities, but the producer-contributor boards that run the programs must reimburse AMS for such costs. [â¦] Title V of the Federal Agricultural Improvement and Reform Act of 1996 (P.L. 104- 127) gave USDA broad-based authority to establish national generic promotion and research programs for virtually any commodity, either at its own initiative or upon the request of an industry group, without waiting for specific legislative authority. Prior to the 1996 law, a check-off necessitated passage of specific authority for an individual commodity -- a route that some producer groups still follow.
