American Lamb Board
How the Mandatory
US Lamb Checkoff Works
The national Lamb Checkoff, directed by the American Lamb Board (ALB), is funded by a mandatory assessment (checkoff) paid by all segments of the US sheep industry. By federal law, all sheep or lambs of any age, including ewes, rams, feeder and market lambs, breeding stock and cull animals, are subject to the Mandatory Lamb Checkoff assessment at the time of every sale.
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American Lamb Board Checkoff
How it Works
Live Weight Assessment
$ .007/LB
Paid to lamb purchaser by seller at the time of each sale
PAID BY:
■ Producers
■ Feeders
■ Seedstock producers
■ Exporters
■ Direct marketers
COLLECTION PROCESS:
Auctions
1. Collect live weight and first handler assessments
2. Remit to ALB
Sales, Fairs & Shows
1. Sale managers, fair boards and 4-H/FFA clubs can collect and remit
directly to ALB
OR
2. Deduct and pass through to the buyer, who becomes the first handler who is responsible for remitting both assessments to ALB
Exporters
1. Remit to ALB at the time of export
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First Handler Assessment
$ .42/Head
First Handler is the owner of the animal at time of slaughter, such as packer, processor or direct marketer
PAID BY:
■ Packer/processors
■ Direct marketers
■ Any individuals, groups, partnerships, cooperatives or other legal entities that own the animals at the
time of slaughter
COLLECTION PROCESS:
Packers/Processors
1. Collect live weight assessments from sellers
2. Add first handler assessments
3. Remit both to ALB
Direct Marketers
1. Pay both live weight and first handler assessments
2. Remit directly to ALB
FAQs About the US Mandatory Lamb Checkoff
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DescriptioThe American Lamb Board (ALB) is the national promotion, research and information checkoff program that works on behalf of all American producers (commercial and seedstock), feeders, direct marketers and processors to build demand for American Lamb. Funding is through mandatory assessments paid by all industry segments. This is a national checkoff program authorized by the Lamb Promotion, Research and Information Order, which went into effect in 2002.
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The 13-member board represents all industry sectors, geographic regions and sizes of production. Members are nominated by qualified industry organizations, then appointed by the USDA Secretary of Agriculture. The work of the ALB is overseen by USDA and supported by staff in Denver, CO.
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Almost two-thirds of the annual budget funds American Lamb promotion programs. By law, the Board’s expenditures for administration are limited to 10% or less of projected revenues. Budgets are established by the American Lamb Board and expenditures are approved by the board. No funds can be used for lobbying or influencing government policy.
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The USDA’s Agricultural Marketing Service (AMS) oversees the American Lamb Checkoff to assure that funds are spent as intended by law. Information is available at ams.usda.gov.
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The Mandatory American Lamb Checkoff is paid by both US production and processing sectors, as established by federal law. Sheep or lambs of any age, including ewes, rams, feeder and market lambs, breeding stock and cull animals are subject to the national lamb checkoff assessment at the time of every sale. Imported meat sales are not part of the program, therefore allowing ALB to only promote and build a preference for American Lamb.
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Those who raise lambs (such as commercial and seedstock producers, feeders, exporters and direct marketers) contribute $.007 per pound. This is called the “live weight” assessment. Those who harvest the meat (including packers/processors, direct marketers and cooperatives) contribute $.42 per head. This is called the “per head” or “first handler” assessment.
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Direct marketers are producers who maintain ownership of some or all of their lambs and sheep through production, feeding and harvest, and sell their products directly to consumers, retailers and/or chefs. Direct marketers have their lambs or sheep custom harvested at a local processor or butcher. In some cases, primarily for ethnic sales and holidays, direct marketers sell their lambs and sheep directly off the farm. Direct marketers are both the producer and the first handler and are responsible to pay both the live weight and first handler assessments and remit directly to the American Lamb Board.
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Owner of the animal at time of slaughter, such as packer, processor or direct marketer.
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Each person or entity which sends live lambs or sheep out of the US are responsible for remitting the live weight assessment to ALB at the time of export.
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Yes. The process for animals sold through auctions changed Jan. 21, 2022. Auctions now collect live weight assessments from the seller and per head (first handler) assessments from the buyer. If a producer or feeder sells lambs to a first handler and has already paid the checkoff at an auction, a refund will be issued. To receive a refund, documentation will be required from the time of sale.
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By USDA regulation, there are scenarios when a refund is in order. In all refund cases, proper documentation will be required, including completing the USDA refund request form, available here.
Refunds will be issued when a feeder who is not a first handler (lambs’ owner at the time of harvest) buys animals at an auction or sale and is charged the first handler assessment of $.42 per head. This feeder can submit a refund request accompanied by the payment receipt. If these animals are then sold to a first handler who collects the live weight assessment, the feeder can also submit a refund request for the weight portion he/she is not responsible for and was already collected at the auction or sale. The feeder is only responsible for paying the $.007 per pound of live weight they added to the animals from the time of purchase to the time of sale to the first handler.
Refunds will also be issued to dealers. A dealer is exempt from paying the lamb checkoff if: (1) the person’s only share in the sale proceeds is a sales commission, handling fee, or other service fee; or (2) the person acquired ownership of the lambs to facilitate transfer of ownership from the seller to a third party; or (3) the person resold such lambs no later than 10 days from the date of acquired ownership. When a dealer, as defined above, buys animals at an auction or sale and gets charged the first handler fee of $.42 per head, a refund request accompanied by payment receipt can be submitted. If that dealer then sells these animals at a second auction or sale and is charged the live weight assessment ($.007 per pound), the dealer can submit a refund request for both transactions.
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Assessments must be sent with Form LS-81, the Monthly Remittance Report. Mail form LS-81 and payment to: American Lamb Board, 23029 Network Place, Chicago, IL 60673-1230. Forms and payment may also be completed online here.