“Most people have never heard of” it, but if you buy a Christmas tree, its cost will be higher because of the “small 15-cent tax that is part of the Christmas tree check-off program”, notes Adam Michel of the Cato Institute:
Federal commodity promotion authority, also known as checkoff programs, requires producers to pay mandatory fees to fund research and marketing campaigns for generic products. The result is government-funded marketing campaigns, such as “Got Milk?” “The Incredible, Edible Egg,” and “Beef. It’s What’s for Dinner.” The Christmas tree check-off program is one of the most recent additions.
In 2011, the Obama administration proposed a national Christmas tree checkoff, based on broad authority given to the USDA to establish new commodity tax and promotion programs at the industry’s request. The backlash was immediate and bipartisan. News outlets mocked the idea of a federal Christmas tree tax, and the White House withdrew the rule.
In 2014, Congress quietly revived the tax in the farm bill. That is why this Christmas season, the live tree you purchase will include the cost of the 15-cent tax assessed on growers. The program raises roughly $2 to $3 million per year, depending on sales. That money funds national advertising campaigns and promotional research under the supervision of a government-sanctioned board dominated by industry insiders.
Checkoff programs sometimes end up funding anticompetitive activity or political campaigns. 17 years ago, the American Egg Board tried to divert $3 million in mandatory checkoff funds to fight a California ballot initiative limiting animal confinement. More recently, the American Egg Board was caught waging a campaign against “Just Mayo,” a vegan mayonnaise substitute. Similarly, the dairy industry used check-off funds to campaign against plant-based milks and the cotton industry used to check-off funds to campaign against synthetic alternatives. These are just a few examples of check-off boards often going beyond promoting a commodity, to engaging in anticompetitive actions against competing products.
