Lamb-Only Checkoff
Proposal Is Pending

DENVER — U.S. sheep industry leaders met here last week to work out several major points of a draft lamb-only checkoff plan created by USDA's Sheep Industry Checkoff Exploration Team.

Several sheep organizations were represented or sent comments to USDA, including the American Farm Bureau Federation; the American Sheep Industry Association; the National Lamb Feeders Association; the National Sheep Association; the U.S. Sheep Seedstock Association; the Livestock Marketing Association; and various state sheep associations.

The meeting was conducted to ascertain major areas of agreement throughout the industry on a checkoff in anticipation of USDA's formal request for checkoff proposals. After proposals are submitted to USDA, the department will release a formal checkoff proposal for nationwide public comment, expected next spring.

All groups at the meeting supported a mandatory collection system. Several other major points were discussed as well. The representatives asked that a second draft order encompassing the following points be written for distribution to the industry and submission to the USDA:

• Set assessments at a half-cent per pound on live lambs, with packers contributing an additional 30 cents per head. That would raise an estimated $3.8 million annually;

• Remittance to the checkoff board done at the packer level;

• Conduct a delayed referendum with full refunds available prior to the vote;

• Require a majority of voters and production for successful passage of the referendum;

• Create a 12-member checkoff board nominated by the industry and appointed by the Secretary of Agriculture;

• Exclude importers from the checkoff;

• Limit adjustments to assessment rates to .2 percent on the per-pound basis and a similar rate for packers and require any adjustments go through federal rulemaking and a public comment period.