Currently browsing posts about: Checkoff

Congress in its infinite wisdom is now doing Big Ag a big favor.  It wants to exempt checkoff programs from having to deal with pesky Freedom of Information Act (FOIA) requests.

The House Appropriations Committee just approved its version of the 2017 Agriculture Appropriations bill along with committee report language getting checkoffs off the hook.

Checkoff programs, you will recall are commodity research and promotion programs run by boards and overseen by USDA.   The Milk Board, for example, does the milk mustache campaign.

Checkoffs mainly do generic marketing.  They are not supposed to lobby.  The USDA is supposed to manage the boards—but not with federal money.

So are checkoffs government programs or not?

The checkoffs like to say they are government when convenient, but not government when inconvenient.  This is one of those times.

The report language says because checkoffs are “not agencies of the federal government,” they should not be subject to FOIA laws.

I learned about this latest example of congressional protection of industry from a tweet on May 2 from Associated Press reporter Candice Choi.

Food commodity trade groups, she shows, wrote a letter to Congress to exempt checkoff programs from being subject to FOIA requests.

Congress happily incorporated that language right into the Appropriations Act.

In their article about this latest act of hypocrisy, Candice Choi and Mary Clare Jalonick write:

On April 11, a group of 14 trade associations sent a letter to Rep. Robert Aderholt, R-Ala., chairman of the House Appropriations agriculture subcommittee, and Rep. Sam Farr, D-Calif., the subcommittee’s top Democrat, asking them to urge USDA to recognize that the promotional programs are not subject to public records requests.  The rationale was that the programs are funded by producers, according to a copy of a letter obtained by the AP.

Irony alert: A Supreme Court decision in 2005 upheld the checkoffs’ collection of fees from producers as being protected as “government speech.”

Hypocrisy alert: Trade associations wrote the letter, not the checkoff boards.  This is because the boards are not allowed to lobby, but their closely related trade associations can.

Choi and Jalonick also point out that:

The checkoff programs were established by the government at the industry’s urging as a way to collect mandatory fees from producers for promotional efforts. That has resulted in considerable marketing muscle for agricultural products. Last year, the egg board had revenue of more than $22 million; the pork board’s revenue topped $98 million in 2014.

The Fern quotes professor Parke Wilde of Tufts University, a long-standing expert on checkoff programs.  These, he says,

have always been subject to freedom of information laws. It stands to reason: Farmers and the public deserve to know what’s really going on with these well-funded USDA-sponsored programs….

Wilde obtained documents

about the 2006 decision by the Pork Board to pay $60 million to the National Pork Producers Council for the rights to the advertising slogan of pork as “the other white meat.” Wilde wrote in 2013, “It looks to me like the sale price was drastically inflated as a way of funneling money from the semi-public checkoff program to the private-sector trade association.”

Just last year, a FOIA request from The Guardian, revealed that the egg checkoff, working with Unilever, agreed to use its influence to have Hampton Creek’s Just Mayo removed from Whole Foods.

Lobbying or not?  You decide.

The National Farmers Union says it

strongly opposes the blurred lines between the commodity trade associations and the checkoff boards. Our policy states that mandatory producer assessments should not go to organizations that engage in lobbying, and no contracts should be awarded to organizations that carry out political or lobbying activities.

FOIA is a central pillar of transparency in our democracy. It provides for an open government where citizens can request records from federal agencies – with some exemptions for national security, law enforcement and personal privacy…Take a look at the letter NFU sent today, and let your members of Congress know that this language is not in the best interest of family farmers, ranchers or consumers.

Thanks to The Hagstrom Report for this list of references

▪ Capital Press — Commodity groups seek Freedom of Information exemption for checkoff boards

▪ National Public Radio — Under Attack, Commodity Promotion Programs Try To Hide Their Emails

▪ U.S. Food Policy —Checkoff program supporters seek to shield checkoff boards from freedom-of-information scrutiny

▪ The Guardian — Largest U.S. food producers ask Congress to shield lobbying activities

▪ Fortune — Where’s the Beef? You Won’t be Able to Find Out if Agricultural Groups Get Their Way

I always am interested in Michele Simon’s provocative reports.  Her latest, Whitewashed, is no exception.  It’s about how the government promotes dairy foods, no matter what kind or where they appear.

Read her blog post here.

Download the full report here.

Read the executive summary here.

Here’s are some of the surprising (to me) findings detailed in the report:

• About half of all milk is consumed either as flavored milk, with cereal, or in a drink;
• Nearly half of the milk supply goes to make about 9 billion pounds of cheese and 1.5 billion gallons of frozen desserts–two-thirds of which is ice cream;
• 11 percent of all sugar goes into the production of dairy products.

Where the government enters the picture is through the “checkoff programs” for promoting milk and dairy.  These are USDA-Sponsored programs, paid for by dairy farmers through checkoff fees, but run by the USDA.

U.S. Department of Agriculture employees attend checkoff meetings, monitor activities, and are responsible for evaluation of the programs. The U.S. Supreme Court has upheld the legality of the checkoff programs as “government speech”, finding: “the message … is controlled by the Federal Government.”

The report has some interesting findings about the checkoff.  Although checkoff funds are supposed to be used for generic marketing, the dairy checkoff helped:

• McDonald’s make sure that dairy foods play an important role in product development.
• Taco Bell introduce its double steak quesadillas and cheese shreds.
• Pizza Hut develop its 3-Cheese Stuffed Crust Pizza and “Summer of Cheese” ad campaign.
• Dominos add more cheese to its pizzas as a result of a $35 million partnership.
• Domino’s “Smart Slice” program introduce its pizza to more than 2,000 schools in 2011.
• Promote “Chocolate Milk Has Muscle” and “Raise Your Hand for Chocolate Milk.”

I like dairy foods, but should the government be doing this?

 

This gem comes courtesy of DairyReporter.com.

It got my attention, for sure.

Recall that Got Milk! ads are funded by a USDA-sponsored research and promotion (a.k.a “checkoff”) program, this one, appropriately, for fluid milk.

Will this ad help reverse the long-term trend in declining milk sales let alone consumption?

Um.  Why don’t I think so.

I’m catching up on reading and just ran across a report about the accomplishments of the dairy checkoff.  This, you will no doubt recall, is the USDA-sponsored program that collects a “tax” from dairy producers and uses the funds for generic promotion of dairy products.   What fills the folks running the checkoff with pride?  Among them,

• Focusing on dairy health and wellness by helping to combat childhood obesity by encouraging schools to implement physical activity and good nutrition, including dairy.
• Partnering with Domino’s Pizza to develop pizzas using up 40% more cheese than usual.  This worked so well that other pizza chains are doing the same thing.
• Partnering with McDonald’s to launch McCafe specialty coffees that use up to 80 percent milk, and three new burgers with two slices of cheese per sandwich.  The result?  An additional 6 million pounds of cheese sold.
• Creating reduced lactose milks in order to bring lapsed consumers back to milk.  The potential result?  An additional 2.5 to 5 billion pounds of milk each year.
• Partnering with General Mills’ Yoplait to develop yogurt chip technology that requires 8 ounces of milk.
• Maintaining momentum for single-serve milk by offering white and flavored milk in single-serve, plastic, resealable bottles.

As the person who sent this to me put it, you can’t make this stuff up.