A recent economic analysis of the national Beef Checkoff program found that each dollar invested in its demand-driving activities created a total financial benefit of $13.41 for producers and importers who pay into the program.
This data was from the most recent five-year period, beginning in 2019.
Through an independent economic analysis, the study’s objectives were to measure:
- Whether national Beef Checkoff demand-driving activities increased demand for beef products (domestically and abroad)
- The combined financial benefits of those activities to beef producers and importers
- The indirect benefits of national Beef Checkoff demand-driving activities to the broader macroeconomy
Beef Checkoff’s Return-on-Investment (ROI):
In addition to calculating a ROI of $13.41, the ROI analysis evaluated various scenarios had there not been any investments in national Beef Checkoff demand-driving activities:
- Total domestic beef demand would have been 2.4 billion pounds (8.5%) lower per year than actual results.
- The steer price would have been 7.8% lower per year than actual results.
- U.S. export beef demand would have been 372 million pounds (11.5%) lower than actual results in the seven major importing countries included in the study.
Beef Checkoff’s Broader Economic Impact:
The study also evaluated the national Beef Checkoff’s direct effect on the beef industry and its indirect effects on the broader U.S. economy.
The direct effect of the national Beef Checkoff adding an incremental $3.3 billion to the beef industry sector had positive indirect effects on the broader U.S. economy, including increases in:
- U.S. employment by almost 47,000 people
- U.S. employment income by $2 billion
- Total value added to the U.S. economy of $4.1 billion
- U.S. GDP by nearly $9.5 billion
The study also showed the national Beef Checkoff contributed to increased tax revenue at the federal, state, and local levels, amounting to a grand total of $743 million in 2023, distributed as follows:
- $34 million in county tax revenue
- $205 million in state tax revenue
- $504 million in federal tax revenue
