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Tea Party and Cowboy Hats 2

31 Jan

The second Tea Party topic is the Beef Checkoff.  Not long ago this was really wound up in a scandal.  I do not feel there has been sufficient time gone by yet to prove things are on the right track.  It takes a bit of time to reestablish trust.  There is some talk about raising the checkoff.  Tennessee just raised their checkoff.  If I recall correctly there is close to 40,000 cattle producers in that state.  1300 cast ballots on their checkoff.  Only 700 voted in favor of getting it raised.  So 700 people decided for 40,000.

Crazy to me how such a small part of the population inflicts its will on the whole.  Kind of like the dipsmacks in DC.  To take by force, to do good, can not be over shadowed by the use of force.  It is still theft.  If that were to happen here in Nebraska, where I live, you would need my voluntary consent.  You will not get it.  I will continue to give you the dollar per head you steal today. I consent to it. No more than that.  You have no right to enact that kind of force.

The only right a human has is his right to his life.  All other rights are granted to him.  You can’t have individual rights, unless there are personal property rights.  Money is person property.  To suggest raising the checkoff to two dollars per head is stripping people of a small part of their personal property rights.  And in turn their individual rights.   The American cowboy valued his freedom above all else.  How can some people get this all wrong?

Now I have been to other countries.  I have seen the checkoff in action over there.  It does some good.  But ,why do they run commercials here on farm radio where people like me are the listening audience.  Yet when I listen to the punk rock station or hip hop station I never, never ever, hear a beef commercial?  Pissin dollars down the drain if you ask me.

I have done the math on this.  If I owned my house.  I rent.  But if I bought a home, and made mortgage payments, what I currently pay in checkoff dollars would pay two months mortgage payments, and then a little left over.  If it was doubled, it would cost me 5 months mortgage payments.  On a fifteen year mortgage.  My wife and daughter would probably rather have the house paid off than some promo deal.

Hey,  ya know.  It is called the Beef checkoff.  I don’t raise or sell beef.  Just cattle.  Maybe the packer and retailer should kick in the other dollar.  After all they are the ones that need to move beef.  I’ve been on numerous YCC type deals.  Every grocery store manager tells me that beef is in the back of the store for a reason.  Foot traffic.  They put in the back to get people to walk past the other items and impulse buy.  They are willing to sell beef at a loss to attract buyers to purchase other things.  For example.  The Independence Day sales. Buy X amount of pounds of  90/10 ground beef, 2 two liter pepsi’s and get a package of buns for free.   Attract them to buy beef and Pepsi and get free buns.  Proof Beef is king.  So why don’t they pay to promote beef, if it is such a necessity to their business?

Take these guys from Texas.  They wanted to sue Oprah, the only mad cow in the US I might add, for bashing beef.  I guess in Texas there is a law that you can’t bash a perishable item.  The judge ruled against them.  They sell steers not beef, and steers are not perishable.  Again I sell cattle not beef.

We are seeing record high prices for cattle.  Some people think this is reason enough to raise the beef checkoff.  Apparently these folks do not know much about the cattle biz.  I may be selling cattle for record prices, I am paying record prices for the replacement feeders to.  The margins are the same.  So if this is such a good idea why didn’t we do it 10 years ago?  I made the same profits in 2001 with a dressed bid in the $1.30’s as I do today with dressed bids near 2 bucks.  There is no validity in that argument.

Or they say we need to raise it because we have fewer cattle today.  Gosh, I wonder how the cattle biz ever made it out of the 1950’s.

I have heard this argument a bunch.  If we don’t raise it the industry will fade away.  In my mind I have a hard time seeing how an $80 Billion industry is going to die.  Especially when 93% of the people in it never got in it to make a profit anyway.  Almost all of the nation’s cow herds are 50 or less.  These folks all have off farm income.  So cows are like a hobby, or a rent check, or some lifestyle image they are trying to satisfy.  The ones that would be in danger of fading out are the full timers like me, I mean if you want to use that argument.  Yet here I stand telling you not to raise the checkoff.

The checkoff is an infringement on free markets.  It is a fixed cost.  And that is what it is to my operation.  Two ways to look at it.  If I sell a pot of feeders, and there are 75 head on that load, and my profit per head is $75, then all my profit from one calf goes to the checkoff.  Or for example if you sell as many head per a year as I do, at today’s prices I donate two head a year to the checkoff.  To place  input costs into something and give it away is like death loss.  So to double the checkoff, would be no different than saying doubling one’s death loss is acceptable business practice.  No one would go for that

It is human nature to raise ones costs during times of high profits, speaking from the cow/calf side.  Thing is, can we maintain these prices?  Only time will tell. What usually happens when people make big profits they go spend money on things they would like to have.  It gets tough to make those payments later when the price for your product goes back down.  And they will go back down.  The decisions you make today will affect you tomorrow.

I am for some research, advertising, and education.  Some of what we spend time on is pointless, and is a waste of money.  Prove to me you can do good with my dollar that you steal now, before you ask for another dollar per head.

I have plenty more arguments.  If you want to give more money to the checkoff, may I suggest you take your checkbook to convention and write them a donation while you are there.   Just keep your filthy hands out of my checkbook.

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1 Comment

Posted by on January 31, 2012 in Uncategorized

 

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One response to “Tea Party and Cowboy Hats 2

  1. bobkinford

    February 2, 2012 at 10:33 pm

    Glad to see there is someone out there realizing that there is a difference between the cattle business and the beef business! The price of beef in the supermarket is not related to the price of beef ore (otherwise known as live cattle). Unless a rancher is selling their cattle on the grid, the beef checkoff does them no good. As far as where checkoff dollars are spent, RFDTV , ag related radio stations and agriculture magazines with cattle producers as audience/readers are the only place you see checkoff advertising. That is about as effective as advertising viagra only in medical journals

     

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