Pork Checkoff’s rate reduction will not change producers’ priorities

Pork producers will save some money with a reduced checkoff rate, but it means fewer dollars for the program to utilize.

What will the change bring?

During last month’s pork forum, the delegate body voted to reduce the checkoff rate from $0.40 per hundred dollars of value to $0.35.

“It is an extensive process to make a change to the mandatory checkoff. It has to go through a rule-writing process and after approval from AMS, there has to be a rule-writing process, and it has to be published in the register. After that 90 days is up, it all becomes codified and becomes regulations,” said Dale Stevermer.

National Pork Board member, Dale Stevermer says the change will go into effect January 1st. While that nickel change will impact the revenue of the National Pork Board, it will not change its priorities.

“The main ones are demand-driven, both international markets and domestic demand, disease for foreign animal disease prevention, and preparation and our push on sustainability.”

Stevermer says immediately after the forum vote, the Pork Board adjusted its budgeting process for the coming year.

“Based on what the priorities are, how do you want your organization to look? You have certain costs that are fixed, such as personnel and the building that you rent, but other than that, these are all projects and programs. We started pinpointing the things that are most important, and show the best for the checkoff dollar.”

The change will decrease the annual funding of the promotion, research, and consumer information program by about $13 million per year.

For more information, click HERE.

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