What you need to know about who pays the $1.50-per-head beef checkoff investment and available remittance forms.
Compliance with the National and Iowa State Beef Checkoff Programs
By law, all producers selling cattle or calves, for any reason and regardless of age or sex, must pay $1.00-per-head to support beef/veal promotion, research and information through the Beef Promotion and Research Act. Here are some specifics:
- Whoever makes payment to the seller is considered a "Collection Point" or person and must withhold $1.00-per-head, remitting those funds to the Qualified State Beef Council (QSBC) where they live. Collection points could include auction markets, feedyards, dealers/order buyers, other producers, auctioneers, clerking services, banks, packers and other entities.
- The buyer is generally responsible for collecting $1.00-per-head from the seller. By law, both buyer and seller are equally liable to see that $1.00-per-head has been collected and paid.
- No producer is exempt from the checkoff. Buyers who resell cattle no more than 10 days from the date of purchase may file a non-producer status form and avoid paying an additional dollar. They are, however, responsible for remitting collected funds and reporting any transaction to the QSBC.
- Remember: A dollar or a document! All selling/purchase transactions must be reported. In each case, either $1.00-per-head or non-producer status form document must be collected by the buyer from the seller to show the dollar has been collected and paid within the past 10 days.
- If it's more convenient, the seller of cattle may collect and remit funds collected. For instance, purebred breeders selling to many different buyers may wish to remit the checkoff themselves; persons exporting cattle should also pay when the cattle change hands. Buyers should keep receipts showing the checkoff has been paid.
- Persons in non-compliance with the Act and Order are subject to a civil penalty of up to $5,500 per transaction, plus un-remitted checkoff dollars and interest.
The Iowa State Beef Checkoff was recently reinstated through a producer referendum. Cattle producers across Iowa voted on November 30, 2016 in favor of the Iowa State Beef Checkoff. The official vote was certified by the Iowa Department of Agriculture and Land Stewardship on December 14, 2016. The Iowa State Beef Checkoff program is funded through an additional $0.50-per-head assessment on cattle sold in Iowa and where a purchaser enters into a verbal or written agreement with a producer to accept delivery of Iowa origin cattle outside the state. The funds are managed in accordance with Iowa law by an executive committee of 10 members. Collections for this program began on March 1, 2017.On March 1, 2017, all producers selling cattle in Iowa and where a purchaser enters into a verbal or written agreement with a producer to accept delivery of Iowa origin cattle outside the state, for any reason and regardless of age or sex, must pay $0.50-per-head to support beef marketing, promotion, research, and provide education of Iowa's beef industry through Iowa Code Chapter 181. The Iowa State Beef Checkoff assessment of $0.50-per-head, is in addition to the $1.00-per-head national Beef Checkoff Program assessment.
To remit checkoff dollars, click on the Private Treaty or Monthly Remittance form below and mail to:
Iowa Beef Industry Council
PO Box 451
Ames, IA 50010-0451
Where are Checkoff Dollars Invested?
The Beef Checkoff Program invests in programs designed to enhance beef demand.
Encompasses advertising, new product development and promotions partnerships with restaurants and supermarkets to stimulate sales of beef in the marketplace.
Information and promotion projects are developed based on consumer, nutrition, beef safety and product enhancement research.
Works to enhance beef's image through nutritional data and other positive messages targeted to news media, food editors, teachers, dietitians, physicians and other groups.
Promotes an understanding of the beef industry and maintains a positive marketing climate by helping to provide factual information concerning the beef industry.
Seeks to identify and develop international markets for U.S. beef and beef variety meats.
Aims to inform beef producers about how checkoff dollars are being invested and communicates program results. The Beef Checkoff Program acts as a catalyst for change. It is designed to stimulate others to sell more beef and encourage consumers to buy more beef.
For more information about the Iowa State Beef Checkoff Program, please see the FAQ's below:
What is the Iowa State Beef Checkoff?
The Iowa State Beef Checkoff is a producer funded and managed, state-level promotion, marketing, research, and education program for beef and beef products.
How is the Iowa State Beef Checkoff Program funded?
The Iowa State Beef Checkoff Program is funded through a refundable $0.50-per-head assessment on cattle at each point of ownership transfer in Iowa and where a purchaser enters into a verbal or written agreement with a producer to accept delivery of Iowa origin cattle outside the state. Payment of the Iowa State Beef Checkoff is mandatory; however, a refund is optional.
When did collections begin?
Collection of the assessment began March 1, 2017, and continue until the Iowa Beef Cattle Producers Association (DBA: Iowa Beef Industry Council) notifies cattle collection points to cease collection.
Is the Iowa State Beef Checkoff Program different from the current National Beef Checkoff Program?
Yes, the $0.50-per-head Iowa State Beef Checkoff Program is different and separate from the current national $1.00-per-head beef checkoff. The Iowa State Beef Checkoff Program is in addition to and may complement, extend national Beef Checkoff Program efforts, or be used for additional needs of the beef industry.
Unlike the national program, which requires that fifty cents of every dollar collected be sent to the Cattlemen’s Beef Promotion and Research Board for programs, the entire Iowa State Beef Checkoff assessment is managed by Iowa cattle producers. Another difference is the Iowa State Beef Checkoff assessment is refundable.
Who manages the money collected through the Iowa State Beef Checkoff Program?
An executive committee consisting of five elected Iowa cattle producers, two producers appointed by the Iowa Cattlemen’s Association, one appointed livestock market representative, the Iowa Secretary of Agriculture or a designee, the Dean of the College of Agriculture and Life Sciences at Iowa State University or designee serving on the Iowa Beef Industry Council manage funds collected through the Iowa State Beef Checkoff Program.
How will the money be used?
The law does not allow checkoff funds to be used for lobbying activities to influence public policy or government affairs. The use of funds may include, but are not limited to marketing & promoting beef and beef products; enhancing the beef industry’s image; production research; expanding international trade relationships; and providing producer, consumer, youth educational opportunities, and enhancing the National Beef Checkoff Program.
I don't live in Iowa, but I sell cattle in Iowa. Do I have to pay the Iowa State Beef Checkoff?
All cattle sold in Iowa, including out of state cattle sold in Iowa, are subject to the national and state beef checkoff programs. Refunds are available only on the Iowa State Beef Checkoff.
Can I request a refund?
Yes. A producer who has paid an assessment to the mandatory Iowa State Beef Checkoff may obtain a refund of the amount paid by filing an application for refund with the Iowa Beef Industry Council within 90 days after the sale of cattle. The application must be in writing, on a form provided by the Iowa Beef Industry Council for that purpose, and accompanied by proof of payment of the assessment. The current national beef checkoff is not refundable.
Who is exempt from paying the assessment?
If a person qualifies for a non-producer exemption in the national program, that person would qualify for a non-producer exemption in the state program, under the following conditions:
- the person’s only share in the proceeds of a sale of cattle or beef is a sales commission, handling fee or other service fee;
- or the person
- acquired ownership of cattle to facilitate the transfer of ownership of such cattle from the seller to a third party;
- resold such cattle no later than 10 days from the date on which the person acquired ownership; and
- certified, as required by procedures prescribed by the Iowa Beef Industry Council, that the requirements of this provision have been satisfied.
Is this a government program?
No. Iowa law governs the creation of state-level commodity checkoff programs. However, since passage of the producer referendum, the program is administered by cattle producers serving on the Iowa Beef Industry Council Executive Committee. The Iowa Department of Agriculture & Land Stewardship designee serves on the executive committee of the board of directors as a voting member. The State of Iowa maintains oversight.
Who collects and remits the assessment?
Each collection point is responsible for collecting and remitting the assessment. A collection point is any entity, including an individual, which makes payment to a producer for cattle purchased or facilitates transfer of ownership. The assessment will be remitted to the Iowa Beef Industry Council using a new state/national checkoff remittance form. Payment for both the National and State Checkoff Programs can be made with one form and one check (National & State Checkoffs payable to: Iowa Beef Industry Council), which is due by the 15th of the month following the month in which the assessment is collected. Forms and instructions are available at the Iowa Beef Industry Council office.
Where can I get more information about the Iowa State Beef Checkoff?
For more information about the Iowa State Beef Checkoff, please call 515-296-2305 or email IBIC.