The Beef Checkoff

Questions? Need a form? Call 207/549-5972, e-mail mbic@midmaine.com or download a form.

You can remit without using a form. Jot a note explaining: How many head were sold and the date of sale. Remit $1 per head to: MBIC, c/o Bank of America, 192 Water Street, Gardiner ME 04345. 

Also Visit Cattlemen's Beef Board

--------------------------------------------------------------------------------

Beef producers created the checkoff as a self-help program to build demand for beef. If was approved in a 1988 referendum by 79 percent of beef producers after their input shaped the program's structure. The producer-directed program acts as a catalyst for change. Through advertising, cooperative marketing, public relations efforts, education programs and new product development initiatives, the checkoff aims to stimulate others to sell more beef.

Q: Who benefits from the Checkoff?

A: Everyone involved in the cattle business benefits in direct proportion to their investment in the checkoff. Research shows a positive return for every $1.00 invested in the checkoff by every producer.

Q: Who has to pay the Checkoff Dollar?

A: Any producer selling cattle for any reason must pay the dollar. Under the law, cattle are defined as "any live, domesticated bovine animal, regardless of age." Besides cattle sold for slaughter, this includes all dairy and beef cattle sold for breeding purposes through auctions, private treaty sales (producer to producer) as well as cattle butchered by the producer and sold privately in the form of fresh beef.

The Buyer
The beef checkoff goes into effect every time a bovine animal is sold. The law requires that $1.00 per head be withheld from the sale proceeds by the buyer (Collection Point) and remitted to the Maine Beef Industry Council. A "Collection Point" is defined as "any person making payment to a producer for cattle." This includes auction markets, feedyards, dealer/order buyers, other producers, auctioneers, clerking services, banks, commission firms, and packers. When cattle are sold, the "Collection Point" (buyer) withholds $1.00 per head from the sale purchase price. These checkoff dollars are sent to the Maine Beef Industry Council.

The Seller
The seller is also responsible. The seller must collect and remit one dollar per head if:

• The buyer or collection point fails to collect, or
• The seller is a U.S. owner selling cattle for export

Either the buyer or seller may collect and remit the dollar in private treaty transactions. Both the buyer and the seller are equally liable under the law until dollars collected are received by the Maine Beef Industry Council.

Q: Who is exempt from paying the Checkoff?

A: No one. Special allowances are made for buyers reselling cattle no later than 10 days from the date of purchase. These individuals are defined as "resellers" or "non-producers." This exclusion is for individuals

• Who receive only a pre-set sales commission or other service fee for selling cattle to a third party.
• Who owned the cattle for the primary purpose of transferring ownership, such as a dealer or order buyer. 

Q: Where can I obtain the monthly remittance report form?

A: Call the Maine Beef Industry Council at 549-5972 or email us at mbic@midmaine.com and forms will be sent immediately.

Q: I'm a Dairy Producer. Do I have to Checkoff private treaty and auction sales on my dairy cattle?

A: All cattle sold must comply to the checkoff. Sales by auction and private treaty of dairy cattle are subject to the $1.00 per head checkoff. A special remittance form is provided by the Maine Beef Industry Council for private treaty sales.

Q: I'm a Purebred Producer. Are my calves and sales of seedstock subject to the $1.00 per head Checkoff?

A: Again, yes. Any bovine animal sold for any purpose is subject to the $1.00 per head checkoff.

Q: I am the seller. If the buyer collects the dollar from me and doesn't remit the checkoff to the Maine Beef Industry Council, am I resolved of the obligation?

A: No. Contact the Maine Beef Industry Council in such cases and we will assist you in informing the buyer of their obligations and the consequences of not remitting collected checkoff dollars. Noncompliance can include a fine up to $5,000 per transaction. In a reverse situation, if the seller objects to paying, the buyer must deduct the checkoff dollars from the check or other sales' proceeds in order to avoid the buyer's liability.

Q: I'm paying my Checkoff Dollars. But how do I know that everyone else is participating?

A: The Maine Beef Industry Council monitors all Maine transactions to verify compliance with the checkoff program. A computer system helps to ensure that we are not missing significant beef checkoff dollars. Severe penalties also discourage noncompliance. A restraining order, then a civil penalty up to $5,000 per transaction, may be levied on individuals who refuse to cooperate. The system relies primarily on the state's beef and dairy producers to invest a small amount to generate increased demand for beef and better profit potential for their business.