Serious Abuses of Ohio Beef Checkoff Tax Dollars Show Need for Reform

Today, the Organization for Competitive Markets and Ohio Farmers Union released a briefing paper outlining how federal and state funds are being used to prop up and fund a trade and lobbying entity. The Ohio Beef Council, an agency of the Ohio Department of Agriculture, is funneling taxpayer dollars through payroll expenses and rental costs to fund the trade and lobbying group, Ohio Cattlemen’s Association. Further, the state agency raises funds for the Ohio Cattlemen’s Association Political Action Committee (PAC) to influence elections and legislation. It also makes annual cash payments of at least $14,000 per year to the national trade and lobbying group, National Cattlemen’s Beef Association. As set out in the new briefing paper, the state-supported funding is in violation of both state and federal law.

Joe Logan, President of Ohio Farmers Union, said, “For years we have shared these concerns, but they have only fallen on deaf ears at the Ohio Department of Agriculture. Last month at our Ohio Farmers Union convention, we passed a resolution to put a stop to these taxpayer abuses.  We can only hope, based on the evidence in the briefing paper, others in our government will hear the cry of Ohio’s cattle producers and answer the call to clean up this mess.”

Joe Maxwell, Executive Director of Organization for Competitive Markets, said, “It is just unimaginable that the state of Ohio is allowing this taxpayer abuse. A large portion of these funds are federal tax dollars collected by this state agency. The state has a responsibility to administer these federally mandated funds, no differently than it does any other federal funds it receives. Ohio’s family farmers deserve no less.”

The new briefing paper outlines the following taxpayer abuses and seeks the following government action:

Abuses

• Department of Agriculture agency Ohio Beef Council employees go to work every day for the Ohio Cattlemen’s Association, a state trade and lobbying organization.
• State and federal funds are offsetting the organizational overhead costs for the Ohio Cattlemen’s Association.
• The Ohio Beef Council promotes and collects donations for the Ohio Cattlemen’s Association’s Political Action Committee (PAC).
• State and federal funds are being directly contributed to the National Cattlemen’s Beef Association, a national trade and lobbying organization.
• The only reports available to the cattle producers who pay the mandatory fees are self-reports by the Ohio Beef Council. There is a lack of taxpayer transparency on how the checkoff funds are being expended.
• The state and federal checkoff funds are not appropriated by the legislature nor audited by the state auditor, leaving little if any government oversight of the mandatory checkoff fees.

Recommended Actions

• Federal and state checkoff funds should be paid directly to the appropriate federal or state treasury and then be audited by the corresponding federal or state auditing agency.
• The Ohio Department of Agriculture should immediately segregate all activity between the Ohio Beef Council and the Ohio Cattlemen’s Association. Policy should be established that clearly outlines:
  • No state employee should report to a lobbying entity office for work.
  • No state or federal funds should be used directly or indirectly to offset a lobbying entity’s overhead costs to include office rent, equipment costs, salaries or any incidental costs incurred by the lobbying entity.
  • All government funds should be expended pursuant to state standard contracting processes.

Debate on how the Ohio Farmers Union may react to a federal ‘impaired’ designation for the western basin of Lake Erie and the potential to further limit agricultural nutrients in the Maumee River watershed dominated the family farm organization’s policy deliberations over the weekend in Columbus.

OFU held its eighty-fourth annual meeting through Saturday. Special programming this year focused on young and beginning farmers and State Rep. Kathleen Clyde, (D-Kent), was honored as Legislator of the Year.

“Kathleen Clyde served for several years on the House Agriculture Committee and was always a common-sense voice for family farmers and just as importantly, Ohio’s consumers,” OFU President Joe Logan said.

“Rep. Clyde’s determination on fair elections and ending gerrymandering in Ohio’s legislative districts has kept our attention since she left the ag committee,” Logan said.

“Representing a district in northeast Ohio, I have come to know many of the challenges facing our Ohio farmers, as well as the critically important role they play in our communities and in our economy,” Clyde said.

“I am truly honored to receive the Legislator of the Year award from the Ohio Farmers Union and look forward to continuing to advocate for the hardworking farming families that keep Ohio moving forward,” Clyde said.

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As farming communities face mounting challenges with the nation’s opioid epidemic, the nation’s two largest general farm organizations are teaming up to confront the issue. The American Farm Bureau Federation (AFBF) and National Farmers Union (NFU)  announced a new campaign, “Farm Town Strong,” to raise awareness of the crisis’ impact on farming communities. The campaign will also provide resources and information to help farm communities and encourage farmer-to-farmer support to overcome the crisis.

The groups have launched a new website, FarmTownStrong.org, to provide easy access to information and resources that can help struggling farm families and rural communities.

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Quick Notes:

• The convention will be held January 26-27, 2018 in Columbus, Ohio
• Deadline for special room rates at Columbus Airport Marriott is Jan. 10
• Lots of great speakers and programming
• Young & Beginning Farmer events
• Downloadable registration form here
• Take a look at the agenda highlights (Updated January 10, 2018)

Program Shaping Up – More to Announce in January

The 84th Annual Ohio Farmers Union Convention will be held January 26 – 27, 2018 at the Columbus Airport Marriott. We have an informative and dynamic program shaping up. Ohio Dept. of Agriculture Director David Daniels will deliver an ODA update and an overview of the state of agriculture in Ohio to open the convention. Dr. Chris Winslow of Ohio Sea Grant will present on Friday about the state of harmful algal blooms in Lake Erie and whether Ohio, Michigan, Indiana and Ontario are moving the needle on reducing phosphorous entering the lake. We’ll also hear from U.S. Sen. Sherrod Brown who will give us the view from Capitol Hill and preview the Farm Bill.

Of course, we’ll have the National Farmers Union presenting at the Friday night banquet just after the Ohio Farm PAC cocktail reception. Saturday will bring more Ohio ag-oriented presentations and our final deliberations on OFU policy initiatives for 2018.

Program for Young & Beginning Farmers

This year, we won’t be concluding with honoring our legislator of the year and scholarship winners at Saturday’s luncheon. We’re pleased to announce that concurrent with the convention, OFU is sponsoring a Young and Beginning Farmers program over the weekend. On Friday, there will be an urban farm or community food processing tour in the morning. We’ll have some convention hall presentations aimed at young farmers and Saturday will conclude with an after lunch Farm Business Skills Workshop aimed at younger farmers just getting started.

Download a convention registration form here.

As the U.S. Congress readies to vote on a major overhaul of the nation’s tax system, National Farmers Union and Ohio Farmers Union are urging lawmakers to vote against the current plan because of its regressive structure and devastating implications for the nation’s financial standing, farm program spending, and health care affordability for family farmers and ranchers.

“This afternoon’s procedural snafu forcing a second House vote is further proof that this process has been two one-sided and has proceeded too quickly given the tax bill’s impact on the economy at all levels,” said Ron Sylvester, external relations director at OFU.

“Family farmers in Ohio should remain concerned about the long-term effects on the health insurance market and what a more than $1 trillion hit to the federal deficit will do to USDA Farm Bill programs and rural development initiatives,” Sylvester said.

NFU President Roger Johnson sent a letter to members of Congress, highlighting the family farm organization’s major concerns with the bill and noting that NFU plans to score the votes on its voter scorecard. The NFU Board of Directors today voted to oppose the current tax plan because of its implications for the federal deficit and future farm spending.

“This final compromise bill is an unfortunate reflection of the partisan and hurried nature of the tax reform debate that has consumed Washington for the past month,” said Johnson. “What congressional leadership has come up with is a patchwork of handouts for the wealthiest corporations and individuals in our country that will be paid for by family farmers, ranchers, the lower and middle classes, and our future generations. We strongly urge Congress to reject such severely flawed legislation.”

Johnson cited the projected $1.45 trillion deficit increase as a result of the legislation as a primary concern for NFU. “Past efforts at tax reform have at least begun with the goal of being deficit neutral. We are extremely disappointed such an important goal was abandoned in the crafting of this legislation,” he said.

He noted that this deficit increase will likely have direct consequences for farm programs and entitlement funding, as both are expected to be debated early next year.

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Ohio Farmers Union says bill outcomes will be unbalanced and too costly

COLUMBUS – The Ohio Farmers Union today called on U.S. Sen. Rob Portman to vote ‘no’ on the major tax bill pending in the upper body of Congress.

Sen. Sherrod Brown is signaling he will be a ‘no’ vote on the bill as currently constituted and told CNN on Wednesday, “If you want to cut taxes on the middle class, cut taxes on the middle class.”

“While the stated intentions of this bill are tax reductions for the middle class, it’s poor design and $1.5 trillion price tag will have far reaching and negative unintended consequences,” said OFU President Joe Logan.

Logan said the bill’s estimated trillion-dollar plus addition to U.S. deficit spending over the next several years will trigger a cascade of cuts from Medicare to USDA programs like Agriculture Risk Coverage and Price Loss Coverage.

“Existing federal budget ‘pay-go’ rules would require the elimination of virtually all discretionary spending, including many farm programs due to this tax bill’s cost,” Logan said.

According to the Congressional Joint Committee on Taxation and Congressional Budget Office – both non-partisan – by 2027 people earning between $40,000 to $50,000 will be paying a combined $5.3 billion more annually in taxes as compared to today. The same sources report million dollar earners will be paying $5.8 billion less 10 years from now.

“This bill is not fair to the middle class and hardworking people like family farmers,” Logan said. “While tax treatments that benefit the wealthy and corporate America don’t sunset under this bill, anything of substance that benefits working people does.”

“It’s my hope Sen. Portman will build on the ‘moderate’ label he has cultivated and vote against this bill. There is very little here that will ultimately move the needle in the right direction for rural Ohio – or the overwhelming majority of his constituents,” Logan said.

Farmers and ranchers take home just 11.4 cents from every dollar that consumers spend on their Thanksgiving dinner meals, according to the annual Thanksgiving edition of the National Farmers Union (NFU) Farmer’s Share publication. The popular Thanksgiving Farmer’s Share compares the retail food price of traditional holiday dinner items to the amount the farmer receives for each item they grow or raise.

The Thanksgiving Farmers’ Share can be viewed and downloaded here.

“This holiday season, it’s important for us to take time to recognize and thank the family farmers and ranchers who provide our Thanksgiving meals,” said Rob Larew, NFU’s Senior Vice President for Public Policy and Communications. “If you don’t live on a farm or work in agriculture, you probably don’t realize the tremendous difference between the price you pay for food at the grocery store and the prices farmers end up receiving for these products. While consumer holiday food costs have declined recently, incomes for American farm and ranch families have dropped precipitously. We’re in the midst of the worst farm economic downturn in 30-40 years, and we’re hopeful these numbers can help illustrate that fact to the general public.”

On average, farmers receive 17.4 cents of every food dollar consumers spend, while more than 80 percent of food costs cover marketing, processing, wholesaling, distribution and retailing. For the 15 items NFU tracks for the Thanksgiving version, farmers received just 11.4 cents of the retail food dollar.

Turkey growers, who raise the staple Thanksgiving dish, receive just 5 cents per pound retailing at $1.69. Wheat farmers averaged a meager 6 cents on 12 dinner rolls that retail for $3.49. And dairy producers received only $1.47 from a $4.49 gallon of fat free milk.

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