Checkoffs return $9 for every dollar spent on marketing

Since the 1990s, the money for campaigns like “Beef: It’s What’s for Dinner” and “Got Milk?” came from mandatory fees charged to producers to fund the industry organizations. Now the payments are under threat from cattle ranchers and their congressional allies who want to make them optional. They say they’d prefer that advertising not benefit rival beef producers from other countries, who also pay fees, because U.S. beef is best. On average, farmers get paid back about $9 for every dollar spent on the marketing, according to a study co-authored by Gary Williams, professor of agricultural economics at Texas A&M University. For example, the United Soybean Board return is $5.20 on average, while egg farmers get back $8.11. “The programs are highly effective,” Williams said. “It’s a very good return per dollar invested.”Still, some large producers balk at the fees, and some have filed suit against the USDA.