The decision by the U.S. Supreme Court saying the government can force cattle producers to pay fees for research into cow diseases and for ads promoting beef was hailed Monday by a Nebraska industry group.
"We're extremely pleased that the court agreed with our view," said J.D. Alexander of Pilger, past president of Nebraska Cattlemen.
Since 1985, producers have had to pay a $1-per-head fee on cattle sold in the United States to help fund advertising, education and research programs.
Half of that money goes to the Cattlemen's Beef Promotion and Research Board and half to qualified state beef councils. The groups came up with a popular slogan: "Beef: It's What's for Dinner."
Monday's 6-3 decision was a defeat for farmers in several agricultural sectors who oppose paying mandatory fees for generic advertising.
There are dozens of similar federal and state ad campaigns for products including milk, pork and cotton, many of which are being challenged on free-speech grounds.
The beef campaign is a form of "government speech" immune to First Amendment challenge, the court said.
"The message set out in the beef promotions is from beginning to end the message established by the federal government," Justice Antonin Scalia wrote in an opinion joined by Chief Justice William Rehnquist as well as Justices Sandra Day O'Connor, Clarence Thomas and Stephen Breyer.
State Sen. Bob Kremer of Aurora introduced a bill (LB150) earlier this session to create a state checkoff program in case the national program were declared unconstitutional.
Kremer hailed Monday's ruling.
"Fantastic!" he said. "Everybody's on the same playing field."
Kremer said that now he probably won't push his bill for further debate.
Under Kremer's bill, farmers would have to pay $1 a head but could ask for a full or partial refund of the fee on a monthly basis. That, Kremer said, would address concerns about free speech.
The fee would generate an estimated $6 million to $7.5 million a year.
Nebraska produces 20 percent of the beef for the nation's $11.5 billion beef industry and is the top state in commercial cattle slaughter.
Opponents of such fees contend that they infringe on their free-speech rights because they are forced to pay for some marketing campaigns with which they don't agree.
Greg Ibach, incoming director of the Nebraska Department of Agriculture, acknowledged that some producers will decry the ruling.
"However, I have seen the positive effects of the beef checkoff firsthand," he said. "Market access and consumer-oriented research are just two of the many benefits for Nebraska's producers. Today's ruling allows this important work to continue."
Keith Olsen, president of the Nebraska Farm Bureau Federation, said the checkoff has "been vital in enhancing the demand for beef and beef products, yielding enormous benefits to beef producers and the beef industry alike."
The case ruled on by the high court stemmed from a decision by the 8th U.S. Circuit Court of Appeals that said American beef producers did not have to pay the mandatory checkoff, which raises about $85 million a year.
Courts have differed on the legality of checkoffs.
The high court ruled earlier that a mandatory campaign for the mushroom industry violated the First Amendment. But justices have allowed joint advertisements in heavily regulated industries such as California fruit production.
Pork producers won a lower-court ruling striking down a similar program. The Bush administration has appealed that ruling to the Supreme Court, too. The case was expected to be settled after the beef case was decided.
The 5th U.S. Circuit Court of Appeals ruled that state-imposed fees on alligator processors to pay for a marketing campaign are unconstitutional.
And the 3rd U.S. Circuit Court of Appeals ruled earlier that the "Got Milk?" dairy promotion famous for plastering milk mustaches on celebrity faces violates the free-speech rights of dairy farmers.
In January, U.S. District Judge Richard Kopf of Lincoln rejected a lawsuit by a beef industry group that wanted to start its own beef checkoff.
Nebraska Legislature: http://www.unicam.state
National Cattlemen's Beef Association: http://www.beef.org
U.S. Department of Agriculture: http://www.usda.gov
Livestock Marketing Association: http://www.lmaweb.com
Posted in Local on Sunday, May 22, 2005 7:00 pm
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