Date:  May 23, 2005
FOR IMMEDIATE RELEASE
Contact:  Chase Carter
402.817.4443
P.O. Box 6486 - Lincoln, NE 68506 - www.competitivemarkets.com    
     
     
     
OCM: Checkoff Tax Decision Violates Democracy –
Continues Funding the Meat Packer/NCBA Lobby
     
Lincoln ~ The Organization for Competitive Markets (OCM) expressed its disappointment with the Supreme Court’s ruling the beef checkoff is a mandatory tax which does not violate the U.S. Constitution.  Justice Antonin Scalia’s opinion rejected the argument the mandatory checkoff is forced speech compelling all producers to support to the meat packer/NCBA message.  Rather, he found the program a “compelled subsidy.”
 
“This is a sad day for liberty and democracy,” said Keith Mudd, OCM president.  “U.S. cattle producers were told to vote for checkoff implementation because it was a self help program with no government control.  When the program was taken over by the meat packer/importer interests, USDA denied producers a vote in a petition drive.  Now the Supreme Court says the program is no different than any other tax, or any other government program.”
 
Justice Scalia wrote:  “The message set out in the beef promotions is from beginning to end the message established by the Federal Government.”  He stated this is a “compelled subsidy” imposed on cattlemen.  The government can do what it wishes with the money.
 
Justice David Souter wrote the dissenting opinion, joined by Justices Stevens and Kennedy, stating the beef checkoff is no different than the mushroom checkoff the Court struck down in 2001.  Souter quoted Thomas Jefferson stating “to compel a man to furnish contributions of money for the propagation of opinions which he disbelieves, is sinful and tyrannical.”
 
“Producers want the ability to choose whether to continue directing approximately $80 million per year to the meat packer/NCBA lobby which receive virtually all checkoff dollars,” continued Mudd.  “Producers should be allowed to vote on the entire program, and should be allowed a choice to not contribute if they disagree.”
     

The Organization for Competitive Markets (OCM) is an agricultural free market and competition think tank working for honesty, prosperity and economic liberty for farmers, ranchers and rural communities.