The Beef Checkoff, a producer-funded and federally overseen program, invests in research, marketing and promotion to bolster beef demand. Despite current profitability, some producers question whether the program delivers sufficient returns.

Beef Checkoff leaders acknowledge these concerns but argue that the program is more critical than ever.

“I wish every producer knew all the ways the Checkoff is creating a positive return,” said Dan Hanrahan, a Madison County cattle farmer and co-chair of the Checkoff’s Domestic Marketing Committee. “You’ve got programs like research, which are kind of a slow burn but foundational to our work to drive demand, and then you have domestic marketing programs that return $92 on every dollar invested.”

Quantifying THE Checkoff’s value to beef industry
A recent study conducted by the Checkoff found across all programs, it produced a return of $13.52 for every dollar invested. Even more compelling, the study concluded that without the Checkoff, the value of a market-ready animal would be almost 8% lower, as would domestic demand. Internationally, the study estimated demand would be off 11.5%.

“Those are fantastic numbers that producers can really relate to,” Hanrahan said. “It’s all those Checkoff programs contributing to that higher value.”

Changing with the times
Despite these figures, some producers remain skeptical. They point to the declining cow herd and wonder if the Checkoff is effectively adapting to the changing landscape.

“As a program, we are always looking for ways to make more efficient use of the dollars,” Hanrahan said. “We are always looking for ways to do more with less.  We have moved from less targeted, blanket advertising to a more focused approach in getting the right message to the right consumer at the right time. It’s about efficiency and stretching that producer investment for the most impact.”

What would change if the Checkoff went away
While the Checkoff faces scrutiny, Hanrahan argued that its elimination would have devastating consequences for the beef industry.

“At the annual National Cattlemen’s Convention, CattleFax reported 2024 was the second strongest year for beef demand in the last 37 years. They presented the demand growth since the lows in the late 1990s, adds $800 on to a market animal,” he said.

“As a producer, I share concerns many producers have about our industry and shaping our future.  It’s why I’m involved. The facts say it makes a big difference and I believe [If] we were to remove the Checkoff overnight, I think producers would see a really big impact.” Hanrahan said.

He pointed to the Checkoff’s role in supporting organizations like the U.S. Meat Export Federation (USMEF). He noted the Beef Checkoff contributes a significant portion of USMEF’s budget each year.

Ultimately, Hanrahan said, the Checkoff’s success is tied to farmers getting the benefit of that demand creating more opportunities for our industry to be successful and profitable.

“The only place we get new dollars in our industry is through the consumer discovering value in our product and buying more beef. They are doing that,” he said. “A big part of that is a testament to the grit and ever-increasing quality of product of our producers, and I believe a big part of it is due to their investment in their checkoff.”

About the Checkoff
The Beef Checkoff program was established as part of the 1985 Farm Bill, the organization states on its website.

The Checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products.

The Checkoff program was designed to encourage restaurants and grocery stores to sell more beef and increase consumers’ beef purchases. This is accomplished through initiatives such as consumer advertising, marketing partnerships, public relations, education, research and new-product development.

By law, Checkoff funds cannot be used to influence government policy or action, including lobbying. The Checkoff does not own cattle, packing plants or retail outlets. It cannot control prices or single-handedly turn around a bad market.