Federal Magistrate Sides with Producers in Montana Beef Checkoff Lawsuit

The Ranchers-Cattlemen Action Legal Fund (“R-CALF”) and the United Stockgrowers of America have likely survived a motion to dismiss their case against USDA challenging the beef checkoff and obtained an injunction against the Montana Beef Council (“MBC”) to prevent it spending money received from the federal Beef Checkoff Board on promotion.  A federal Magistrate Judge sided with the plaintiffs in the lawsuit, which claims that the federal law requiring funding of the MBC is unconstitutional.  Additionally, the Magistrate suggests a preliminary injunction be issued, which would prohibit the MBC to use checkoff dollars to fund promotional campaigns unless they obtain affirmative permission from cattle producers that their assessment may be retained by the council and used for advertisement.