Australian Public-Private Research Efforts Overshadow U.S. Investments

(WASHINGTON, DC) In the United States, many commodities use “checkoff” funding to develop research and promotion plans for a specific crop. For example, the beef industry takes advantage of a one-dollar per head fee – collected at any time an animal is sold – for the beef promotion and research program. Cotton collects a one-dollar per bale fee to support its research and promotion program. In 2014, the Economic Research Service says nearly 20 national programs and many State-level programs collected about $180 million to support research and promotion efforts. By comparison, however, the Australian government not only allows for checkoff funds to be collected but they also match the producer-raised funds publically. The checkoffs down under amount to more than six-tenths of one percent of the gross value of commodity production (GVP). In the U.S. however, without a government match, the checkoffs amount to one-half of one-tenth of one percent (or 5/100ths of one percent) of GVP.