By Jamie Martin
An independent economic analysis conducted by Dr. Harry M. Kaiser of Cornell University has highlighted the substantial return on investment (ROI) from the national Beef Checkoff program.
For every dollar invested, U.S. beef producers see returns of $13.41, underscoring the program's effectiveness in enhancing beef demand both at home and abroad.
Dr. Kaiser pointed out that while the high ROI is promising, it also suggests that producers are currently underinvesting in these programs, potentially missing out on greater gains.
The study evaluated the impact over the last five years, focusing on three primary areas: domestic and international demand, financial benefits to producers and importers, and broader economic benefits.
Findings revealed that without the Beef Checkoff, domestic beef demand would have dropped by 8.5%, equating to 2.4 billion pounds annually. This would have resulted in a 7.8% decrease in steer prices each year. U.S. beef exports would have been reduced by 372 million pounds annually in the major importing countries.
The checkoff's influence extends beyond direct market impacts. It is credited with increasing U.S. employment by nearly 47,000 jobs and generating $2 billion in employment income.
The program added $4.1 billion in value to the U.S. economy and nearly $9.5 billion to the GDP, alongside generating significant tax revenues totaling $743 million in 2023.
This economic evaluation was mandated under the farm bill, ensuring its independence, as confirmed by Dr. Kaiser who insists on the impartiality of his evaluations.
Such findings demonstrate the crucial role that structured investments like the Beef Checkoff play in not only sustaining but also stimulating the U.S. agricultural economy.
Photo Credit: beef-checkoff
Categories: National