Hoosier cattle and dairy farmers would invest more into their own industry under legislation approved last Tuesday by a near unanimous vote in the Indiana House of Representatives.
House Bill 1224, adopted 94-2, now advances to a Senate committee for further consideration.
"Hopefully, we'll have as strong of support in the Senate as we did in the House," said Joe Moore, executive vice-president of the Indiana Beef Council.
The measure requires $1 be assessed on every head of cattle at the time of sale, with all of the proceeds going to the IBC. Use of the funds would be restricted to promoting and marketing beef along with production, research and education.
The Indiana Beef Council in July voted to work with the legislature in trying to create a state checkoff program in addition to the federal checkoff program already in place.
Currently, the IBC receves a share of the money from the federal program created in 1986 that also levies a $1 fee on every head of cattle at time of sale for use in areas like promotion and research.
Moore said half of Indiana's share of the proceeds are directed to the IBC, while the remainder goes to the Cattlemen's Beef Promotion and Research Board in Denver for national promotions.
The $1 assessment, though, has never changed, with each dollar coming in now having a spending power of just 42 cents, he said.
As a result, the revenue stream from the federal checkoff is no longer enough for the promoting and marketing of beef to make a real impact, he said.
Thirteen states, including Ohio, Kentucky and Illinois, already have their own beef checkoff programs.
"It takes people and it takes dollars. That's why 13 states have taken it upon themselves to do something about it," said Moore.
He estimated a state checkoff would generate $150,000 to $200,000 a year.
"It will triple our revenue stream," he said.
Currently, the IBC has about 1,300 members statewide and surveys indicate more than 90 percent of them support the legislation, Moore said.
Unlike the federal program, the bill provides for accountability by allowing each farmer paying into the state checkoff to get back all of the money they paid in if they choose, for whatever reason, no longer to participate.
All they have to do is request a refund form and mail it to the IBC, he said.
"We'll return his money," said Moore.
In addition, if at least 25 percent of the farmers request refunds for two consecutive years, the program is automatically repealed, said State Rep. Don Lehe, (R-Brookston), the author of the legislation.
He said how the money specifically is spent within the required areas would be decided by an IBC committee.
"If there's a lot of discontent amongst the producers that are paying it, they got a recourse and they can pursue that," Lehe said.
Lehe said the hope is higher prices from increasing demand that might result from greater promotion of beef.
He said a checkoff also could have been pursued through a statewide referendum, but since there seemed to be wide support in the legislature, doing it at the Statehouse seemed to be the quickest option.
"I hope we get the same or similar support in the Senate," said Lehe, who raises both grain and livestock.