Brand Committee fee, membership updates advanced

A proposal to raise Nebraska Brand Committee inspection fees and update committee operations advanced from first-round debate April 1.

LB1187, as introduced by Niobrara Sen. Barry DeKay, would raise the maximum per-head inspection fee from $1.10 to $1.50 and replace mileage-based travel charges with a flat surcharge of up to $30 per inspection stop.

DeKay said higher fees are needed to keep the state’s brand system stable and functioning. Rising costs and declining inspection numbers have reduced revenue, he said, making it harder to maintain the commission’s operations.

An Agriculture Committee amendment would replace the bill with a modified version containing the fee increases and broader reforms to the Nebraska Brand Committee’s structure and operations.

Sen. Mike Jacobson of North Platte offered what he characterized as a “compromise amendment” to narrow and refine several provisions of the committee proposal. He said the amendment would reduce divisions within the cattle industry while preserving the brand system’s integrity and making its application more consistent.

Jacobson said the goal of his proposal is “ensuring Nebraska’s brand system remains strong, credible and trusted.”

Under Jacobson amendment, the terms of the five current Nebraska Brand Committee members would end Aug. 27. Beginning Aug. 28, the committee would be replaced by a seven-member group made up of five cattle producers — one from each newly created geographic district — along with an owner or operator of a cattle feeding operation and a livestock auction market owner.

As under current law, the governor would appoint all members, and current members could be reappointed if they meet the new requirements.

The amendment would limit audits of registered feedlots to no more than twice a year, reviewing 10% of records unless additional audits are approved for reasonable cause. It also would change how feedlot fees are calculated, replacing the flat structure of $1,000 for the first 1,000 head plus $250 for each additional 250 head with a formula based on inspection fees.

Feedlots would pay an annual charge equal to 25% of the per-head inspection fee multiplied by the feedlot’s one-time capacity. The brand renewal fee, paid once every four years, would increase from $200 to $400.

The amendment also would create a classification for Dairy Heifer Development Facilities and exempt certain dairy-related cattle movements from inspection, such as transfers between development facilities and dairies. Cattle already inspected and placed in a registered feedlot or background lot could move between feedlots without another inspection if proper documentation is provided. Inspections still would be required for sales, ownership changes and most other movements.

Sumner Sen. Teresa Ibach supported the Jacobson amendment, calling it an “important step” in modernizing Nebraska’s cattle industry. She said the proposed changes would ensure long-term funding, reflect modern industry practices and protect the inspection system.

Sen. Tanya Storer of Whitman also supported the amendment. Inspections and audits are “non-negotiable” elements that ensure the integrity of the state’s brand inspection system, she said, and the proposal would preserve core protections like proof of ownership and fraud prevention.

Referencing recent widespread wildfires that have affected ranchers in western Nebraska, Storer said the brand inspection system plays a critical role in safeguarding producers’ investments, especially in difficult times.

Opposing the measure was Lincoln Sen. Danielle Conrad. The strength of Nebraska’s cattle industry indicates the current system is working, she said, and that the need for change is unclear. Additionally, citing strong opposition at public hearings, she questioned whether the proposal was representative of everyone’s interests, calling it an “uneasy compromise.”

After voting 39-1 to adopt Jacobson’s amendment, lawmakers approved the committee amendment 38-1. Senators then advanced LB1187 to select file on a 36-4 vote.