Recent Questions

Thanks to Jim Puffer for writing in with the following questions and comments. We have replied as appropriate.

Q-How are the check off funds collected? It is of my opinion that the best place to collect a check off is at the nursery level. At this point funds are being allocated to a marketing program. If there are concerns about mortality the check off should be at a lower rate due to this certainty.

A-The task force has discussed several options for collecting, including at the seedling level. Mortality is one issue... others say that it may not be clear whether the seedling will end up being a Christmas tree or timber, and others say that some grow their own seedlings. There will likely be issues with any manner of collecting, which is why it is so important for the task force to get all of the ideas and input that they can.

Q-I believe it is reasonable to expect growers to be contribute to sustainable marketing program at the beginning of their business plan. If this was implemented would the grower be able to capitalize this expense?

A-Great question. It's the first time we've heard it. If funds were collected at the seedling level, presumably, the money would still be spent before the seedlings reached maturity. While marketing does have a residual effect, we're not sure anyone has ever been successful in arguing that that investment could be capitalized. We will see what I can learn on that.

Q-As far as representation, I feel it would be most fairly represented at a one tree one vote combined with a one grower one vote representation.

A-The task force is sensitive to the idea that those who grow more trees ought to have more say in whether or not to have a program, and if so, what types of marketing/research projects should be funded. The idea of regional representation and making sure the nominees for directors are proportionately representative of those paying into a program helps some with the latter. There are some issues with having some votes count for more than others in a referendum while keeping the balloting anonymous. The task force members are trying to learn how other industries handle that.

Q-Other questions I would have is measuring cost to benefit, administrative costs-total dollars and percentage of generated dollars.

A-USDA limits the amount that can be spent on administrative funds in the first 3 years. Further limitations can be written into the marketing order. The task force was leaning toward limiting administrative costs when they last met. They will now take everything they heard at the three facilitated meetings, plus feedback for some other recent meetings (the California meeting and the Pennsylvania CTA board of directors) and start putting together their recommendations to present at the NCTA Convention in Des Moines in August.

We hope to see you in Des Moines in August (The facilities did not flood and the early registration date has been extended to Tuesday for the Pacific Northwest because of your meeting last week.) Registration info is available at: http://www.christmastree.org/convention08.cfm