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Federation Forum

by Troy Smith for Angus Productions Inc..

DENVER (Feb. 3, 2011) — The National Cattlemen’s Beef Association (NCBA) Federation Forum was conducted Thursday afternoon during the Cattle Industry Convention in Denver. Discussion focused primarily on consideration of a Federation Charter of Principles, which the Federation Division Board of Directors proposed as a means of ensuring the Federation’s ability to operate with a measure of independence, while maintaining the synergies and efficiencies afforded by existing under the umbrella of NCBA.

Federation Chairman Scott George explained that the Federation of Qualified State Beef Councils (or federation Division of NCBA) has responsibility for directing investment of funds received from state beef councils toward programs for beef promotion, research and education. These funds are derived from that portion (one half) of the dollar-per-head beef checkoff collections that each state beef council is allowe by law to retain and use to fund state promotion programs, or contribute in support of national programs. Chairman George said the Federation also receives some funding from the Beef Promotion Operating Committee of the Cattlemen’s Beef Board for specific national programs.

George said there has been concern that decisions made by the Federation Division or Policy Division might be influenced by the other. There also may have been concern that funds derived from the checkoff might be used to influence government policy rather than for beef promotion. Included in the proposed Charter Principles is language stating that Federation directors will not vote on matters related to policy and Policy Division directors will not vote on checkoff-related matters. Charter Principles also restate that, according to the Act and Order which established the checkoff, no checkoff funds may be used to influence policy.

The Charter Principles also call for selection of a Federation Executive Committee empowered to exercise the authority of the Federation when it is not in session, and appointment of a staff member as Senior Executive as point person for the Federation. A staff member would also be appointed to monitor compliance with Charter Principles.

“Everything called for in the proposed Charter Principles is already allowed by existing NCBA bylaws,“ said George, “but the Federation Board of Directors believe adoption of the Charter Principles will help strengthen confidence that the Federation can make decisions independently and still exist within the NCBA framework.”

George encouraged producers present to become familiar with the proposed Charter Principles and provide input, as the proposal is expected to be considered for adoption by Federation directors during the meeting scheduled for Saturday, February 5.