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SDCA expresses disappointment over brand fee increase

South Dakota

Members of the South Dakota Cattlemen's Association expressed disappointment in the action taken Sept. 28 by the State Brand Board to implement a 10 cent per head increase in the brand inspection fee.

"I want to make it clear that SDCA, and I personally, support a brand inspection program that is totally transparent, efficient and accountable to producers who pay brand inspection. We also believe that the majority of brand inspectors do a good job and deserve periodic raises. SDCA does question how much of the increase will actually go to the inspectors since raising their salaries is always part of the reason for increasing the fee," said Scott Jones, SDCA president elect.

SDCA supports the use of brand inspection as a tool for theft prevention. However, the organization opposed the inspection fee increase due to concerns regarding accountability for fees collected as a result of brand inspection.

Prior to any fee increases, SDCA asked the Brand Board to consider implementing the recommendations proposed earlier this summer by the Brand Board's Fee Audit Committee. These recommendations include the establishment of a trust account for fees collected with direct oversight by the Brand Board. The Fee Audit Committee also urged the board to set a cap on inspection program expenses, and conduct an annual time study for contractor personnel involved in the inspection program to establish the salary allocations to the brand inspection program. SDCA members feel the implementation of these recommendations would provide a much clearer picture of the true income and expenses associated with the brand inspection program.

Jones concluded, "Until all of the Fee Audit Committee recommendations are adopted, SDCA opposes any inspection fee increase. Adopting the recommendations will not impose any undue burden or extra expense on the Stockgrowers' Brand Department."

For more information, please contact the SDCA office in Pierre at 605-945-BEEF (2333) or www.sdcattlemen.org.

Date: 10/25/06


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