{"id":27902,"date":"2017-02-09T14:18:05","date_gmt":"2017-02-09T20:18:05","guid":{"rendered":"http:\/\/stateimpact.npr.org\/oklahoma\/?p=27902"},"modified":"2018-05-01T09:51:15","modified_gmt":"2018-05-01T14:51:15","slug":"embezzlement-investigation-in-oklahoma-adds-to-questions-about-oversight-of-federal-beef-promotion-program","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/oklahoma\/2017\/02\/09\/embezzlement-investigation-in-oklahoma-adds-to-questions-about-oversight-of-federal-beef-promotion-program\/","title":{"rendered":"Embezzlement Investigation in Oklahoma Adds to Questions About Oversight of Federal Beef Promotion Program"},"content":{"rendered":"<div id=\"attachment_27903\"  class=\"wp-caption module image right\" style=\"max-width: 620px;\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-27903\" alt=\"A worker corrals cattle into a chute at Oklahoma National Stockyards in Oklahoma City.\" src=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics152_WEB.jpg\" width=\"620\" height=\"413\" srcset=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics152_WEB.jpg 620w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics152_WEB-500x333.jpg 500w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics152_WEB-150x100.jpg 150w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics152_WEB-300x200.jpg 300w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/><\/p>\n<p class=\"wp-media-credit\">Joe Wertz \/ StateImpact Oklahoma<\/p>\n<p class=\"wp-caption-text\">A worker corrals cattle into a chute at Oklahoma National Stockyards in Oklahoma City.<\/p>\n<\/div><p>Federal authorities are investigating the alleged embezzlement of $2.6 million dollars from an obscure Oklahoma board that promotes the beef industry. The investigation and related lawsuits add to questions about oversight of a national program funded by fees charged to ordinary farmers and ranchers.<\/p><p><iframe loading=\"lazy\" src=\"https:\/\/w.soundcloud.com\/player\/?url=https%3A\/\/api.soundcloud.com\/tracks\/306935209&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false&visual=false\" height=\"150\" width=\"100%\" frameborder=\"no\" scrolling=\"no\"><\/iframe><\/p><p><!--more-->On a brisk and busy January morning at the Oklahoma National Stockyards, cattle arrive for auction in trailers pulled by pickup trucks \u2014 and leave in double-decker cars towed by semis.<\/p><p>The Oklahoma City auction is one of the largest markets for young calves that aren\u2019t quite old enough or fat enough to be slaughtered. The day\u2019s haul was a good one: More than 10,000 head of cattle were sold off.<\/p><p>These large auctions and ones in much smaller sale barns across the country collectively take in about $80 million every year from a $1-per-head \u201ccheck-off\u201d fee paid every time ranchers and producers sell an animal.<\/p><p>The check-off is administrated by the <a href=\"http:\/\/www.beefboard.org\/\">Cattlemen\u2019s Beef Promotion and Research Board<\/a>, a network of 45 state-based boards and councils that collects the money to promote the beef industry.<\/p><p>The program is perhaps best known for it\u2019s \u201cBeef, It\u2019s What\u2019s For Dinner\u201d ad campaign and radio and television commercials featuring dancing western fiddles and narration by actor Sam Elliott.<\/p><p>Congress created the program in the &#8217;80s to grow the market for beef. By law, check-off money collected by the beef board can\u2019t be used for politics \u2014 or lobbying. But a small and growing group of ranchers like Paul Muegge aren\u2019t buying it.<\/p>\n<div id=\"attachment_27904\"  class=\"wp-caption module image right\" style=\"max-width: 620px;\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-27904\" alt=\"Paul Muegge, a rancher and former state lawmaker, at his home in Tonkawa, Okla.\" src=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170127-paul-muegge004_WEB.jpg\" width=\"620\" height=\"413\" srcset=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170127-paul-muegge004_WEB.jpg 620w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170127-paul-muegge004_WEB-500x333.jpg 500w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170127-paul-muegge004_WEB-150x100.jpg 150w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170127-paul-muegge004_WEB-300x200.jpg 300w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/><\/p>\n<p class=\"wp-media-credit\">Joe Wertz \/ StateImpact Oklahoma<\/p>\n<p class=\"wp-caption-text\">Paul Muegge, a rancher and former state lawmaker, at his home in Tonkawa, Okla.<\/p>\n<\/div><p>\u201cIt&#8217;s the misuse of the money for political purposes that&#8217;s caused the problem,\u201d says Muegge, a former Oklahoma state senator and member of the <a href=\"http:\/\/competitivemarkets.com\/\">Organization for Competitive Markets<\/a>, a small group that is critical of the checkoff program and beef board.<\/p><p>Muegge says check-off money and beef boards have very little oversight, and he points to his own state as proof.<\/p><p>In October, the Oklahoma Beef Council filed a civil lawsuit to recover $2.6 million dollars it says was embezzled by a former accounting and compliance officer. An internal audit obtained by <a href=\"http:\/\/harvestpublicmedia.org\/content\/26-million-paid-farmers-and-ranchers-missing-oklahoma-beef-council#.WJy8e0e1U-k\">Harvest Public Media<\/a> suggests hundreds of thousands of dollars of ranchers\u2019 money vanished every year for seven years. Through attorneys, the former compliance officer declined interview requests.<\/p><p>The state and national beef boards declined interview requests, but confirmed in statements that they are cooperating with an investigation. The U.S. Attorney\u2019s Office in Oklahoma City said there was an investigation but would offer no details.<\/p><p>There is no evidence the Oklahoma Beef Council used any checkoff money for illegal political activity. But Mike Callicrate, a cattleman who operates out of Colorado and Kansas and is a\u00a0 founding member of the Organization for Competitive Markets, says the investigation and lawsuit merit increased scrutiny of the national beef checkoff program.<\/p><p>\u201cThey\u2019re not even watching the bank account!\u201d Callicrate says.<\/p><p>Over the years, a growing segment of the nation\u2019s 700,000-plus ranchers have <a href=\"http:\/\/harvestpublicmedia.org\/article\/ranchers-rebel-over-beef-checkoff\">complained that the federal checkoff program<\/a> has ballooned into a billion-dollar cash cow for big ranchers and multinational meatpackers.<\/p>\n<div id=\"attachment_27905\"  class=\"wp-caption module image right\" style=\"max-width: 620px;\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-27905\" alt=\"A long line of cattle are herded into a semi-trailer at Oklahoma National Stockyards in Oklahoma City.\" src=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics109_WEB.jpg\" width=\"620\" height=\"413\" srcset=\"https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics109_WEB.jpg 620w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics109_WEB-500x333.jpg 500w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics109_WEB-150x100.jpg 150w, https:\/\/stateimpact.npr.org\/oklahoma\/files\/2017\/02\/20170131-onsy-pics109_WEB-300x200.jpg 300w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/><\/p>\n<p class=\"wp-media-credit\">Joe Wertz \/ StateImpact Oklahoma<\/p>\n<p class=\"wp-caption-text\">A long line of cattle are herded into a semi-trailer at Oklahoma National Stockyards in Oklahoma City.<\/p>\n<\/div><p>A top complaint from Muegge and other members of the Competitive Markets group is that the checkoff program effectively requires them to fund a system they say promotes large-scale producers over smaller ranching operations.<\/p><p>\u201cThey\u2019re just able to control the agenda,\u201d Muegge says.<\/p><p>The fight has moved from the cattle yard to the courtroom. The Organization for Competitive Markets is <a href=\"https:\/\/www.agri-pulse.com\/articles\/4600-lawsuit-seeks-documents-from-usda-inspector-general-beef-checkoff-probe\">suing<\/a><a href=\"https:\/\/www.agri-pulse.com\/articles\/4600-lawsuit-seeks-documents-from-usda-inspector-general-beef-checkoff-probe\"> to force the USDA to turn over records<\/a> related to an audit of the checkoff program.<\/p><p>The group suspects checkoff money has funded illegal political lobbying by the <a href=\"http:\/\/www.beefusa.org\/\">National Cattlemen\u2019s Beef Association<\/a>, which did not immediately respond to requests for comment. The Colorado-based association represents the majority of farmers and ranchers and has denied using checkoff money for political influence.<\/p><p>Members of the Competitive Markets group are convinced their money is being used against them. The lawsuit is due back in court in March, and that\u2019s when activists like Callicrate and Muegge hope they get a lot more answers to their questions about how the beef checkoff money is being spent.<\/p><p>\u201cIf you&#8217;re collecting money from a lot of varied interests (then) I think you&#8217;ve got to be open and transparent about where it&#8217;s going,\u201d Muegge says. \u201cWe just can\u2019t get straight answers any more.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A federal investigation and lawsuits over the alleged embezzlement of $2.6 million dollars from an obscure Oklahoma board that promotes the beef industry add to questions about oversight of a national program funded by fees charged to ordinary farmers and ranchers. <\/p>\n","protected":false},"author":36,"featured_media":27903,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[491],"tags":[313,696,692],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/27902"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/comments?post=27902"}],"version-history":[{"count":15,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/27902\/revisions"}],"predecessor-version":[{"id":29845,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/27902\/revisions\/29845"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media\/27903"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media?parent=27902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/categories?post=27902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/tags?post=27902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}