Today at Pork Forum, delegates approved a change in the mandatory Pork Checkoff rate. The current rate of 40 cents/$100 value per live animal will change to 35 cents/$100, effective Jan.1, 2023. This represents a 12.5% reduction in the Checkoff rate.
The resolution – offered initially by Minnesota, Indiana and Ohio, but joined in support by Iowa, Nebraska, Illinois, Montana and South Dakota – passed the delegate body with 94% of shares voting in favor.
The resolution is reflective of a recommendation of the Pork Industry Vision Task Force – a group of 19 industry leaders from the National Pork Board, the National Pork Producers Council (NPPC) and various states that had met to discuss the current structure and resource needs of the U.S. pork industry to ensure its long-term success.
The task force offered several recommendations to the Pork Act Delegate Body, which came before and were approved by the Pork Act Delegate Body through an advisement offered by Iowa, Ohio and Illinois. These recommendations include:
- Create a joint producer-led working group of state leaders (NPB and NPPC) that conducts annual industry planning, prioritizes issues, identifies risks and develops action plans.
- Invest in shared resources (within the criteria of the separation agreement) to develop and implement a more fully coordinated marketing strategy and communications plan for the industry overall.
- Form a new joint industry task force in 2022 to ensure the industry is equipped to address issues and opportunities at the state, regional and grassroots level. The task force shall report annually to the voting delegates at Pork Forum.
- Establish a culture and operational framework that ensures the most efficient and effective use of producer funding.
NPB will provide a report on implementation progress of recommendations 1 - 4 to the delegate body no less than annually.
“Producers have told industry leadership they expect us to be efficient, strategic with their dollars,” said Gene Noem, a producer from Iowa and president of the National Pork Board. “These resolutions reflect a desire to be more responsive to industry needs and challenges, and to present a more unified and consistent voice across the industry. Despite the reduction in the mandatory Checkoff rate, the Pork Board will continue its critical work of research, promotion and education."