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American Lamb Checkoff

Livestock Update, September 2002

Scott Greiner, Extension Animal Scientist, Sheep, VA Tech

As of July 1, 2002, all members of the sheep industry will be participating in the new lamb checkoff created by the Lamb Promotion, Research & Information Order. Assessments will be used for American lamb programs. Funds and programs will be managed by a Board of Directors, which will be appointed this fall by the U.S. Department of Agriculture (USDA). This pamphlet is provided by the American Sheep Industry Association (ASI) with basic explanations of the checkoff to assist you with the implementation of this program. This pamphlet is not an official legal document but rather a guide to help explain the checkoff collection and remittance system. The official Federal Register notice of the regulation published June 7, 2002 can be found at, or contact Marketing Programs Branch, AMS/USDA at 202/720-1115.

All sheep are subject to the assessment (all feeder and market lambs and all breeding stock and cull animals) when sold.

General operation of this checkoff is to have the purchaser collect the assessment with a deduction from the sales proceeds of the seller and carry the funds forward to point of slaughter or export at which time the checkoff is collected and sent to the Board.

Packer purchases a 130 pound lamb. (.005 x 130 pounds = $0.65) will be deducted from the seller's proceeds and remitted to the checkoff by the packer. The packer must also remit an additional 30 cents at slaughter to the checkoff.

Producer sells 80 pound feeder lamb. (.005 x 80 pounds = $0.40) is deducted from his/her proceeds by the feeder. The feeder carries that 40 cents forward as his sale proceeds will be deducted for the final live weight of the lamb at slaughter. The lamb weighs 130 pounds at slaughter. The feeder forwards the assessment on the weight gain (.005 x 50 pounds = $0.25) as well as the prior assessment of 40 cents ($.40 = $.25 = $.65) to the packer. Since it is the point of slaughter, the packer will remit the 65 cents to the checkoff plus his 30 cent assessment.

Producer sells 200 pound cull ewe. (.005 x 200 pounds = $1) is deducted from his proceeds by the auction barn and the purchaser carries that assessment forward to the point of slaughter or export, at which time the final weight is assessed and funds are remitted to the checkoff. The auction barn completes the non-producer status form to show it is exempt from the checkoff.

Producer has a 65 pound lamb custom slaughtered for sale to the consumer. Producer remits (.005 x 65 pounds = 32.5 cents) plus 30 cents first handler assessment to the checkoff.

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