Oklahoma Beef Checkoff Questioned

OMAHA (DTN) -- A group funded by the Humane Society of the United States has asked the USDA to launch an investigation into efforts in Oklahoma to establish a statewide beef checkoff program, according to a complaint filed on Oct. 3.

The Organization for Competitive Markets, which has pressed the USDA to take steps to better control federal checkoff programs as a whole, called on the agency to audit the checkoff in Oklahoma.

The OCM alleges the Oklahoma Beef Council has illegally become involved with the Oklahoma Cattlemen's Association in promoting a "yes" vote on a proposed $1 state checkoff program by using the federal checkoff logo, http://bit.ly/…, on a website and Facebook page, http://bit.ly/…. The proposed Oklahoma checkoff is set for a Nov. 1 vote.

The Oklahoma Beef Council said in a statement it is "not involved nor has it funded the Vote Yes beef checkoff referendum process in Oklahoma led by a coalition of Oklahoma beef and agriculture organizations."

In addition, OCM requested a complete audit in light of a recent $2.6 million theft from the federal program by a former employee who pled guilty on a variety of charges.

In the complaint the OCM alleges the Oklahoma Beef Council's involvement in promoting the state checkoff vote is in violation of Beef Promotion and Research Act of 1985 and a federal order that governs the program.

OCM contends the act and the order "explicitly ban the beef council from influencing governmental action or policy. Supporting and promoting an increase in fees by the beef council is clearly a violation of this explicit prohibition," the complaint said.

"Further, the council and the national beef checkoff's funds and trademarked logo, mark and symbol are illegally being used to promote and influence government policy and action by supporting and promoting a 'yes' vote on the referendum to establish a state of Oklahoma beef checkoff program which will assess every Oklahoma cattle producer an additional $1 per-head fee," according to the complaint.

"Compounding this illegal use of Beef Research and Promotion checkoff funds and trademark is the fact that the council has just recently disclosed that over $2.6 million of federally mandated beef checkoff fees have been stolen," the complaint said.

"From their gross negligence of accountability for federal tax dollars and the accountability they owe to every Oklahoma family farmer and rancher who is mandated to pay these fees, it is absolutely clear the council does not have the accounting procedures in place or the sophistication and expertise to provide an accurate accounting of the funds they are currently entrusted."

The Oklahoma Beef Council acknowledged the theft and addressed the concerns about the upcoming vote.

In July 2016 the council said it discovered one of its employees, Melissa Morton, "had committed fraud against OBC and its board of directors, employees, and constituents," the council said in a statement, noting it continues to work to recover lost funds.

Morton has pled guilty to fraud and is awaiting sentencing in federal court after falsifying financial documents, according to the council.

"The beef producers of this state put their trust in OBC, and we take this trust extremely seriously," the council said. "We have already taken steps to ensure the integrity of the beef checkoff in Oklahoma and a greater level of accountability generally."

If Oklahoma producers vote for the checkoff, it would become the 16th state to implement a $1 checkoff including Alabama, Georgia, Iowa, Idaho, Illinois, Kentucky, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Texas, Utah and Washington.

The federal program requires 50 cents of every $1 collected to be sent to the Cattlemen's Beef Promotion and Research Board for programs. The $1 Oklahoma assessment would be managed by state producers and would be refundable.

Read the OCM complaint here: http://bit.ly/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on Twitter @toddneeleyDTN

(ES/BAS)

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