Designing a Voluntary Beef Checkoff
By: Norwood, F. Bailey; Winn, Chris; Chung, Chanjin; Ward, Clement E.
Norwood, F. Bailey; Winn, Chris; Chung, Chanjin; Ward, Clement E., Designing a Voluntary Beef Checkoff, Journal of Agricultural and Resource Economics, Volume 31, Issue 1, April 2006, Pages 74-92
Recently, the U.S. Supreme Court considered whether the mandatory fees imposed by the beef checkoff violates the First Amendment. As a precaution, many states began forming voluntary beef checkoffs, where funds would be raised through voluntary contributions. This study conducted a survey of Oklahoma cattle producers to determine what type ofvoluntary checkoff design would receive the greatest support. The most popular checkoff placed a large emphasis on advertising and a slightly lower checkoff fee. The survey also tested the ability of a provision point mechanism to limit free-riding. The mechanism was not as effective as in other studies which used laboratory experiments.