Sixteen commodity checkoff boards and marketing orders gather at first-ever showcase.

September 28, 2018

3 Min Read
Ag promotion groups celebrate success at inaugural D.C. event
Pork Checkoff

Commodity checkoffs and marketing orders celebrated a historic milestone this week as they gathered in Washington, D.C., for the inaugural Agriculture Promotion Groups’ Educational Showcase to tell their unique stories, including activities, achievements and industry and consumer benefits resulting from their research, promotion and education.

U.S. Department of Agriculture undersecretary for marketing and regulatory programs Greg Ibach kicked off the educational event with remarks for leaders of 16 promotion groups representing commodities ranging from almonds to avocados, walnuts and watermelon.

“Even though ag promotion groups have been around for more than 80 years, few people truly understand how these industry-funded groups operate and why,” Ibach said. “We hope this showcase raises awareness of how research and promotion programs and marketing orders help American farmers, ranchers, importers and industry work together to build demand and be more competitive through promotion, research and education while providing value to consumers and the economy.”

Checkoffs defined

Iconic consumer advertising campaigns like “Got Milk,” “The Incredible Edible Egg” and “Pork. The Other White Meat” are examples of generic marketing programs paid for by farmers and allied industry members through their checkoffs.

“Being a part of an ag promotion group helps us achieve common goals,” National Mango Board chairman Michael Warren said.

Producers of generally homogeneous commodities, such as cranberries, Christmas trees, lamb, mangoes, mushrooms, olives, paper, pecans, etc., pool their resources to help -- ultimately -- consumers and industries access, enjoy and learn more about foods and fibers.

“If you’ve learned how to cut and use watermelon from a magazine article, discovered new honey uses on a website or heard about research resulting in breakthrough medical findings for peanut allergies from a health reporter on TV, chances are one of America’s ag promotion groups made that information possible and accessible,” Greg Gill, chairman of the National Peanut Board, added.

Checkoffs and marketing orders were created by acts of Congress at the behest of industries to help improve on-farm productivity, expand U.S. and international demand and educate consumers about the benefits and/or uses of their respective commodities. USDA currently oversees 37 agricultural promotion groups.

The Cotton Board was the first checkoff, formed in 1966. The most recently formed marketing order, the American Pecan Council, was established in 2016.

Farmer-funded campaigns spur job creation

Agricultural promotion groups are required to measure their return on each dollar invested. Research shows the returns are significant.

A 2017 study, “U.S. National Economic Contribution of Generic Food & Agricultural Product Advertising,” concluded that for each dollar spent on advertising and promotion by agricultural promotion group campaigns, stakeholder returns ranged from $2 to $15.

The 2017 study also found that the success of agricultural promotion group programs in supporting and growing their respective sectors of agriculture spills over to the general economy, creating jobs, generating income and spurring economic growth. The study estimates more than 825 jobs were supported for each million invested in 2015.

The 27 agricultural promotion groups measured in the 2017 study invested a combined $624.6 million in commodity promotion programs in 2015.

USDA conducts comprehensive management reviews with each group and requires independent annual financial audits and periodic econometric reviews to measure return on investment to ensure full and complete transparency. Most agricultural promotion groups also directly pay for their congressionally mandated USDA oversight.

“As a family farmer, I know from experience how important the USDA oversight role is,” Ibach said. “We are committed to helping the thousands of farmers and ranchers represented here to communicate the successes they achieve by working together to overcome agricultural challenges.”

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