| Brand fees have gone up |
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| Brand fees adopted |
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Brand Inspection Program adopted brand fees
The long discussed brand inspection fees have been adopted. Any fees not being charged now, will go into effect December 21, 2007. There are a few fees and fee structures that change with the rules. The most significant change is the hide inspection fee.
The new hide fee of $1.50 will only be charged against those hides that are actually inspected. The rules also state that at least 25 percent of all hides have to be inspected annually. The fee is higher because the volumes are low at mobile slaughter sites around the state. Previously, larger volumes could be inspected at rendering facilities, which no longer exist in Oregon.
The only other change from current fees and charges is the brand inspection fee for self inspection, (E certificates). The brand fee will be $1 per head and the beef council fee stays the same at $1.50 per head. So, the fee for “E” certificates, as we call them, will increase $0.15 per form.
The $0.85 per head inspection fee and the $25 service fee stay the same and are applicable any time we travel specifically to perform an inspection.
The Oregon Department Of Agriculture would like to thank all the Advisory Group members and all the producers who have been involved in creating and adopting these fees that are proposed to maintain budget for 3 years. Meetings will continue as needed for program needs and budget analysis. There could also be proposed legislative changes in the future that need analysis and input.
Questions about the changes or application and implementation of the new fees can be addressed to Rodger Huffman, state brand inspector 541-562-9169 or State Veterinarian/Administrator, Dr. Don Hansen at 503-986-4680.
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| Brand advisory members |
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| Glenn Barrett | Oregon Cattlemen's Assoc. Rep | Bonanza | 541-545-6370 | | Tom Elder | Livestock market representative | Woodburn | 503-981-9497 | Jon Elliott
| Beef cattle producer | Medford | 541-776-3082
| John Flynn
| Oregon Cattlemen's Assoc. Rep
| Lakeview
| 541-947-4534
| | Beverly Harper | Horse Association representative | Junction City
| 541-998-1575 | | Jan Kerns | Board Member of ODA | Haines | 541-856-3449 | | Donald Kessi | Beef Cattle producer | Blodgett | 541-438-4113
| Sharon Livingston
| Oregon Cattlemen's Assoc. Rep
| Long Creek | 541-421-5276 | Dave Nelson
| Legislative consultant for Dairy Farmers | Salem
| 503-585-1157 | Mike Smith
| Oregon livestock producer
| Prairie City | 541-820-4483 | | John Volbeda | Dairy farmer | Albany | 541-926-9890 | | Jim Welch | Legislative consultant | Elmira | 541-554-8043 | John Wilson
| Feedlot owner/manager representative | North Powder | 541-898-2288
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| Value of current program |
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An industry questionnaire was sent out with 3000 brand renewals in 2005, with more than 600 being returned. 95% said they were satisfied with the current structure and quality. 91% said the program is meeting the needs of the industry. 73% said the way laws are currently enforced is what they wanted, while 26% said the program needs to be more aggressive, and 1% said it needs to be less aggressive.
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| Need to build cash balance |
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Due to marketing cycles and turnout for summer grazing, the inspection system loses money monthly from March to September. We need to build an operating reserve to cover those months through fall of 2007.
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| Cost cutting measures |
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Are there cost cutting measures that can be implemented to minimize the fee increase?
Absolutely, there are always ways to reduce expenditures. The advisory group and department are taking the results of the poll mentioned above to keep an effective program in place and be as efficient as possible. Since the bulk of our costs are for staff people who come to your place when you want them, we have to be as efficient as can be, with the full time people handling as many inspections as possible. Including supervisors, there are 7 full time inspectors in the state. We have redirected the activities of the supervisors to do mostly inspections. Employee training and enforcement of laws will continue, but at a reduced percent of supervisors time. We have also cut out patrols for theft prevention by our two investigators.
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| Long-term picture |
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The advisory group and staff are looking at all ways to be most efficient, yet stay effective. There likely will be additional fee increases to provide adequate revenues to cover Program expenses, and a continuing need be as efficient as possible. The producers themselves can help here immensely by being ready when we are called to be there. If revenues do not keep up with costs, program restructuring will be implemented to reduce expenses. Most long-term fee increase options will require a change in the law that can only be debated in the legislature
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| Other states increase fees |
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Oregon is not the only state that is having this type of funding crisis with the inspection program.
All of the western states have increased or are increasing their fees to help meet rising costs and lower than expected revenue. Washington just raised their fees to $1.60 per head on non-branded/identified cattle and $1.10 for branded/identified cattle. This is a raise from a flat 85 cents per head. In addition, Washington has implemented a time and travel fee. At the end of their inspection they tally up the per head costs and the time and mileage amount and determine which is higher, then the producer gets charged the higher of the two for that inspection.
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