Center Supports Beef Checkoff Lawsuit

In the release reproduced here, the Center for Individual Freedom expressed its ardent support for independent ranchers' battle against Beef Checkoff.

FOR IMMEDIATE RELEASE

Contact: Eric Schippers

August 7, 2001 703-535-5836

Ranchers and Center for Individual Freedom Join Forces in Beef Checkoff Lawsuit

BILLINGS, MT -- An independent cattle producing family in Montana and the Center for Individual Freedom (CIF) today filed briefs in a lawsuit challenging the constitutionality of the mandatory beef promotion program.

The briefs, submitted in U.S. District Court in Billings, Montana, on behalf of Steve and Jeanne Charter, ask the court to freeze all existing beef checkoff assets and establish an escrow account for those assets and for future checkoff payments, pending the outcome of the case. In addition, the suit seeks a refund of past compelled payments, should the program be declared unconstitutional.

This suit follows the June 25 ruling by the U.S. Supreme Court in United States v. United Foods that it violates the First Amendment for the government to compel mushroom producers to pay for industry advertising.

Like their mushroom-producing counterparts, Steve and Jeanne Charter of Shepherd, Montana, oppose the notion of mandatory advertising fees and they have refused to pay their checkoff assessment on a portion of their cattle. Facing thousands of dollars in civil penalties, the Charters have been battling in court with the USDA since 1998. In January, the case was put on hold by U.S. District Court Judge Jack Shanstrom, pending the United Foods decision.

The Charters, with assistance from the Northern Plains Resource Council, have spent more than $20,000 on their defense. CIF has established a legal fund to support litigation to overturn the program, and its general counsel, Renee Giachino, is assisting in the case.

"My clients and I have long held that their First Amendment rights were being violated by the Beef checkoff," said Kelly Varnes, attorney for the plaintiffs. "In light of the United Foods decision on mushrooms, we’re hoping our lawsuit will signal an end to this unconstitutional scheme."

"We strongly object to being forced to fund the National Cattleman’s Beef Association’s (NCBA) and the Beef Board’s advertising, education and promotion programs," said Jeanne Charter. "Their messages fly in the face of everything we, as family cattle ranchers, stand for."

Mrs. Charter cites, for example, advertising that promotes highly processed, adulterated beef products for several specific large food processing companies, such as Hormel and Stouffers, which "displaces consumption of pure, high quality beef, such as we produce."

Erik Jaffe, a member of the Charter’s legal team and a former clerk at the U.S. Supreme Court, said: "This case will turn on whether the government tries to claim that the beef promotion program is different from the mushroom program, a claim that would contradict the arguments the government made to the Supreme Court in the United Foods case. We argue that the two programs are strikingly similar and that the First Amendment exists, in part, to prevent government from compelling individuals to subsidize the expression of certain views with which they may disagree."

Eric Schippers, Executive Director of CIF said, "For the Charters and thousands of independent cattle producers like them, this lawsuit is about their livelihood. The program has been abused by an association that purports to speak for all cattle producers, but does not represent the diverse views and interests of small ranching families. For the Center for Individual Freedom, it is a pure First Amendment issue of compelled speech."

CIF filed an amicus (friend of the court) brief in the United Foods case involving mushroom growers, as well as in a case in the California Supreme Court involving mandatory advertising for plum growers (Gerawan Farming, Inc. v. Veneman). The California case was remanded to the lower court and is still pending.

The beef checkoff program — which claims to raise more than $80 million annually — is paid for by an assessment on beef producers of $1 per head of cattle sold. The program, enacted by Congress, has become increasingly controversial as independent ranchers have challenged the large waste of money, diversion of funds for inappropriate purposes, and advertising that benefits giant corporate packing houses and retailers at the expense of independent producers.

Efforts are underway to solicit contributions from other ranchers and supporters for the Checkoff Legal Fund. "While the Charters brought this lawsuit and have spent thousands supporting it, they need our help. If they win, which is now a realistic goal in light of the United Foods decision, it will benefit every independent rancher in this country. We hope all will understand that and make contributions to support their own interests," said Schippers.

Those wishing to contribute to the CIF Checkoff Legal Fund, or to learn more about the lawsuit, may call Eric Schippers at 703-535-5836. Court filings in the case will be provided on request and also may be read online at the Center’s website: www.cfif.org

Founded in 1998, the Center for Individual Freedom is a non-partisan, non-profit organization with the mission to protect and defend individual freedoms and individual rights guaranteed by the U.S. Constitution.

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