Memorandum
January 22, 2013
To:
Lynn Heinze
From:
Dan Hoffman
Subject:
Topline Findings from the January 2013 Beef Producer Attitude Survey
_____________________________________________________________________
Aspen Media & Market Research was commissioned to conduct a study of beef producers
nationwide in order to determine their awareness of, attitudes toward, and concerns about the
Beef Checkoff program. The following are the topline findings from this study. They are based
upon 1,200 interviews of a random representative sample of beef (1,061) and dairy (139)
producers nationwide. The sample of producers was stratified based upon the 2007 Agricultural
Census, by state and type of operation. The data was weighted by region to be proportionate to
the number of U.S. beef and dairy farms in that region.
To participate, respondents had to indicate they managed an operation that included
cattle. The interviewing was conducted between December 20, 2012 and January 3, 2013. For
a sample of 1,200, the maximum statistical margin of error is ± 2.8 percentage points around
any one reported percentage. For those aware of the checkoff, the maximum margin of error is
± 3.0 percentage points.
Support for Checkoff
Producers continue to have favorable attitudes toward the beef checkoff program.
Currently about three in four approve of the program, which is unchanged from a year ago.
Support for the checkoff has been fairly consistent over time. In the past decade, a majority
always have approved of it, with positive ratings of 60% or more. Results have been even more
positive in the past five years, with approval levels ranging between 68% and 76%.
The research also shows that the proportion of producers who disapprove of the checkoff
continues to remain low, a trend in recent years. Thirteen percent disapprove of the checkoff,
which is virtually unchanged during the past year. Producers’ dissatisfaction with the checkoff
peaked in January 2003, when 27% disapproved of it. Since then, it has trended downward and
is now 14 points lower. Currently, there are virtually equal numbers of producers who say they
“strongly” or “somewhat” disapprove of the checkoff. There has always been a core group of
producers who dislike the program; it is in the lower end of the historical range (12%-27%).
1
For the most part, checkoff support has remained steady in spite of changing operating or
economic conditions, or extensive news coverage. The cattle market has been cyclical—it has
improved and declined several times over the past decade.
In the past three years, operating conditions have improved for producers and their
attitudes toward the beef industry reflect this. Since the summer of 2010 until now, between
42% and 47% of producers believe the biggest challenge facing the U.S. beef industry is high
production costs, low cattle prices, or profitability. In contrast, at least six in ten producers were
concerned with this in January 2010.
While economic conditions impact producers’ outlook toward their industry, the effect
upon checkoff approval levels has been small. It also may depend upon when you talk to
producers. In January 2012, 37% expected sales for their cattle or dairy business to improve
during the year. Last summer, only 23% were optimistic. It has climbed somewhat since then to
30%. Another issue that may continue to be a problem is last summer’s drought. As the price of
corn rises, profitability may suffer. About one in five producers consider the lack of rain to be the
biggest challenge facing producers. This also has herd size implications. Only one in five expect
to increase their herds this year.
Checkoff Approval Levels
100%
80%
60%
40%
80% 82% 75%
70%
64% 66% 66% 65% 68% 60% 69%
73% 73% 70% 72% 68% 69% 74% 76%74% 76%
20%
0%
-14%-16%-15%-14%-15%-13%
-15%-12%-17%
-20%-18%-17%-15%-15%
-21%-24%-19%-22%-22%-20%
-27%
-20%
19
92
19
Fe 93
bD 94
ec
Au 95
g9
Ja 6
n9
Ja 7
n0
Ja 0
n0
Ja 1
n0
Ja 2
n0
Ja 3
n0
Ja 4
n0
Ja 5
n0
Ja 6
n0
Ja 7
n0
Ja 8
n0
Ja 9
n1
Ja 0
nJa 11
nJu -12
ly
-Ja 12
n-1
3
-40%
Disapprove
Approve
Knowledge about the checkoff continues to be a predictor of favorability toward it, a
consistent finding. Producers who are “very” or “somewhat” well informed are more likely to
approve of the checkoff, particularly among those who say they are very well informed. Among
this group, nearly nine in ten approve of the program (57% of them strongly), while 10%
disapprove. There is a similar ratio of approval and disapproval ratings among those who are
2
somewhat well informed (83% and 9%, respectively), but fewer of them say they strongly
approve (35%).
In contrast, the strength of checkoff support softens among those who say they are not
too well informed. A majority (54%) approve of the checkoff (only 12% strongly) compared to
23% who disapprove.
Not surprisingly, there is lower checkoff support among those who say they are not at all
informed, due in part to a lack of familiarity. About one in four are unsure.
Approval Ratings
Strongly approve
Somewhat approve
Neither
Somewhat disapprove
Strongly disapprove
Don’t know
(n=)
Very well
informed
57%↑
30
2
4
6
1
Somewhat
well
informed
35% ↑
48
6
5
4
2
Not too well
informed
12%
42
10
11
12
12
Not at all
informed
8%
23
17
4
24 ↑
24 
(324)
(471)
(224)
(41)
Awareness of and Knowledge about Beef Checkoff
Understanding producers’ awareness of the checkoff program is a first step toward
determining how familiar they are with it. Low awareness represents a lack of knowledge about
the program. With little knowledge, it can be difficult for producers to understand the benefits of
the program. To address these issues, producers were asked whether they had heard about the
checkoff and, if so, how knowledgeable they were about it.
First, producers were asked, on an unaided basis, if they were aware of the checkoff—
that is, without any description of it being read to them. The vast majority have. Eighty-four
percent said they had heard of the program, which virtually matches awareness a year ago. The
reality, however, is that one in three producers know little or nothing about it. Seventeen percent
said they were not too well informed, three percent were not informed at all, and 16 percent
were not even familiar with the name.
3
Unaided Awareness of Checkoff
Jan-06
10
2
Jan-07
10
2
Jul-07
Jan-08
18
15
15
13
15
4
2
Jan-09
20
4
Jun-10
Jan-11
14
10
4
12
12
31
32
13
34
34
30
33
15
4
30
37
16
3
33
35
15
20
29
40
5
Jun-08
Jan-10
41
33
37
17
36
39
29
July--11
15
3
17
36
Jan--12
14
4
16
39
27
July--12
14
4
15
40
27
Jan--13
0%
16
3
10%
Never heard
17
20%
30%
Not informed
29
37
40%
50%
Not well inf.
27
60%
70%
Smwt well inf.
80%
90%
100%
Very well inf.
The 16% of producers who did not recognize the checkoff on an unaided basis were read
a subsequent description of it. Using this reinforcement helped raise their awareness another
four percentage points. In total, then, the unaided and aided name awareness of the checkoff is
very high (88%).
The overall trends in producers’ knowledge about the checkoff on an unaided and aided
basis continue to be mostly positive, a consistent finding over time. While still high, the
proportion of producers who have at least some knowledge about the checkoff program has
dropped somewhat over the past two-and-a-half years. As the table on the next page indicates,
two-thirds of producers consider themselves “very” or “somewhat” well informed about the
program, the low end of the range over the past five years.
On the other hand, at 34%, the proportion of producers who consider themselves
uninformed is at the high end of the historical range.
4
Awareness
(unaided,
aided)
of checkoff
Informed
Very well
Smwhat
well
Uninformed
Not too well
Not
informed
Never
heard
(n=)
Jan.
2008
71%
32
39
June
2008
68%
35
33
Jan.
2009
66%
30
36
Jan.
2010
68%
33
35
June
2010
73%
36
37
Jan.
2011
68%
29
39
July
2011
68%
29
39
Jan.
2012
69%
28
41
July
2012
70%
28
42
Jan.
2013
66%
27
39
29
17
5
32
14
3
34
15
5
32
18
5
27
16
4
33
17
4
33
18
3
31
18
4
31
17
4
34
19
3
7
15
14
9
7
12
12
9
10
12
(900)
(1,200)
(900)
(1,200)
(900)
(1,200)
(900)
(1,200)
(1,225)
(1,200)
The underlying value of the checkoff remains strong, although it is not immune from
challenging market fundamentals or a bad economy. Producers recognize the program has
some key strengths and plays an important role in the cattle business. They were asked
whether they agreed or disagreed with a series of statements about the checkoff.
First, in times of crisis, a large majority (79%) are confident the beef checkoff is on their
side. If producers believe the industry is being attacked, only 18% think the program does not
do a very good job of standing up for them with the remainder in disagreement or offering no
opinion.
The overall value of the checkoff is viewed favorably as well, regardless of the economy.
About eight in ten believe the checkoff has value even when the economy is weak. A similar
number think the program plays a positive role in influencing consumer demand for beef.
Producers also believe it helps them remain profitable. About seven in ten agree with the idea
that the program has helped contribute to the profitability of their operation over time.
Generally, producers give positive marks to checkoff management as well. Approximately
seven out of ten trust it is being managed well compared to only 14% who do not.
5
Recall of Checkoff in Advertising or News
A program with the visibility of the checkoff is bound to be talked about or in the news from
time to time. It is
important to find out
Recall of Checkoff Coverage/Discussions Remains Up
just how visible the
Recall of checkoff
program is and how
producers perceive
Jan--10
46%
the coverage. The
Jan--11
45%
results indicate that
Jan--12
53%
many producers
continue to pay
July--12
50%
attention to recent
Jan--13
50%
checkoff news: the
visibility of the
Checkoff coverage*
program remains
Positive
68%
high. Currently, one
Negative
5%
out of two producers
have seen, read, or
Neutral
20%
heard something
Both
5%
about the beef
checkoff in the past
DK/NS
2%
six months. Of the
producers who are
0%
20%
40%
60%
80%
100%
Aspen Media & Market Research, 1/13.
*Among those aware of coverage.
aware of the checkoff
being discussed, a
large number (68%) perceive the majority of news coverage to be positive. In contrast, only five
percent think it is negative.
6
Perceptions toward Need for Checkoff Increase
Inflation and increased operating costs are a reality for any organization or business. A key
issue for the Operating Committee is whether producers would support an increase in the
checkoff assessment to cover these increased costs of doing business. The checkoff
assessment has remained unchanged for the past 25 years.
With this mind, producers were asked whether they would support an increase from $1 to
$2. Right now, there are more producers who oppose this (48%) than support it (42%). While
support is up somewhat from last summer, it virtually matches support levels from a year ago
(44%).
Support for Higher Checkoff
Awareness of Checkoff
-47
$2 checkoff (1/12)
-52
$2 checkoff (7/12)
-60%
Oppose
-40%
Unsure
-20%
28
12
23
9
-48
$2 checkoff (1/13)
11
0%
Somewhat support
16
13
22
20
20%
40%
60%
Strongly support
7