Budgets cuts for the Wyoming Beef Council

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Facing declining revenue, the Wyoming Beef Council has started to make significant cuts to its programs and staffing for the FY 2016 budget.

The Wyoming Beef Council, a five-member board of beef producers, works on behalf of the cattle growers of Wyoming to increase beef demand domestically and internationally for the benefit of Wyoming farmers and ranchers. Its programs are funded by the $1-per-head beef checkoff collected on all Wyoming cattle when they are sold. 

“Cattle sales in Wyoming have steadily been declining, equating to less revenue to run our programs,” said Ann Wittmann, executive director of the Wyoming Beef Council. “We take the responsibility of managing producers' beef checkoff investment very seriously. With the current revenue situation, reducing programs and staff is the responsible approach.”

Due to weather conditions like drought, the reduction in available acres of public and private grazing land, increased operating expenses, the aging of beef producer populations and a number of other factors, cattle numbers in Wyoming have been declining since 2001. According to the Wyoming Agricultural Statistics Service, the January 1, 2015 inventory of all cattle and calves in Wyoming totaled 1.3 million head, up 2 percent from the January 1, 2014 inventory indicating that ranchers are retaining cattle instead of selling them. Wyoming's largest head count of cattle and calves was established in 1975 at 1.69 million head. 

Wittmann explained that beef checkoff dollars are collected at the sale of cattle, so during herd rebuilding checkoff revenue declines.

“Although our revenue is currently low, we are encouraged by the indicators of herd rebuilding. This is just part of the ebb and flow of the industry,” said Wittmann. “We've got our fingers crossed that conditions for rebuilding continue and while that happens, we will strive to ensure that demand for beef and beef products stays strong by strategically using valuable checkoff dollars.” 

Revenue from the beef checkoff in fiscal year 2015 has come in 13 percent lower than anticipated and nearly 25 percent less than fiscal year 2013. This reduction in revenue is consistent with the reduction in brand inspection fees seen by the Wyoming Livestock Board. To budget conservatively, the Wyoming Beef Council expects revenue to be $775,000 for fiscal year 2016, which begins July 1, 2015. 

At the March 25 conference call, the Wyoming Beef Council voted unanimously to reduce Wyoming's investment in the Federation of State Beef Councils to $87,000 in FY 2016 and to not fill the WBC's executive assistant vacancy until revenue supports having two paid staff positions. The minutes from the March board meeting are available to download at www.wybeef.com/forproducers.aspx.

The Wyoming Beef Council is one of 45 Qualified State Beef Councils that make up the Federation of State Beef Councils, which is housed in the National Cattlemen's Beef Association Checkoff Division. The Wyoming Beef Council appoints a total of three representatives to the Federation of State Beef Councils. These representatives serve on national beef checkoff committees and help form and direct national checkoff programs. 

The Wyoming Beef Council has reduced its investment Federation of State Beef Councils from $150,000 in FY 2015 to $87,000, the minimum allowed for Wyoming to have three representatives, for FY 2016.

“We have traditionally invested additional funds in the national efforts of the Federation of State Beef Councils based on the concept that our funds have the greatest potential for impact when pooled with the dollars from other states to promote beef where consumers live versus where cattle are raised,” Wittmann explained.

By not filling the vacant executive assistant position, the Wyoming Beef Council is down to one employee, the executive director.

“Even if we risk losing the position through a hiring freeze, not filling the vacancy at this time is the financially responsible thing to do,” Wittmann said. “As funds increase down the road, the council will consider filling it again.”

The next meeting of the Wyoming Beef Council will be held on April 28 at the Holiday Inn East in Casper. Cuts to international and in-state programs will be discussed at that time.

 

 

Source:  Wyoming Beef Council

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