Judge rejects suit by cattle industry

LINCOLN, Neb. – As the U.S. Supreme Court considers whether the government can force cattle producers to pay fees for research into cow diseases and for ads promoting beef, a lawsuit by an industry group fighting the USDA to start its own voluntary program was rejected by a federal judge.

The group’s lawsuit was thrown out by U.S. District Judge Richard Kopf of Lincoln.

The case was on the periphery of a widening rift between small cattle producers and auction houses, and the handful of large corporations that control an increasing portion of the industry.

The lawsuit was filed by the Hickman, Neb.-based Organization for Competitive Markets, also known as OCM. The national, nonprofit organization conducts research and advocacy work on behalf of agricultural producers.

Joining OCM in the lawsuit were two cattle auction houses: Ogallala Livestock Markets Inc. of Nebraska and Torrington Livestock Markets of Wyoming.

The lawsuit, which Kopf said lacked “subject-matter jurisdiction” in a one-page order dated Jan. 7, claimed the Agriculture Department was blocking OCM’s voluntary program and asks a judge to rule that the program is legal.

Kopf made no further comments in his order.

Since 1985, producers have had to pay a mandatory $1-per-head fee on cattle sold in the United States to help fund advertising, education and research programs. Half of that money goes to the Cattlemen’s Beef Promotion and Research Board and half to qualified state beef councils. The groups came up with the popular “Beef: It’s What’s for Dinner” slogan.

The case pending before the U.S. Supreme Court stems from a decision by the 8th U.S. Circuit Court of Appeals that said American beef producers do not have to pay the mandatory checkoff.

Under the program started by OCM in late 2002, producers could voluntarily contribute money from the sale of each head of cattle to fund research aimed at increasing demand for domestic cattle.