Click here to download the Lamb Checkoff Remittance Form (LS -81)
All sheep are subject to the assessment (all feeder and market lambs and all breeding stock and cull animals) when sold.
General operation of this checkoff is to have the purchaser collect the assessment with a deduction from the sales proceeds of the seller and carry the funds forward to point of slaughter or export at which time the checkoff is collected and sent to the Board.
Who Is Assessed
|• Producers||• Direct marketers|
|• Seedstock producers||• Ethnic slaughter operations|
|• Exporters||• Custom slaughter clients|
|• Feeders||• Slaughter/packing plants|
Imported sheep and lambs are to be assessed on weight gained in the United States, once a domestic producer, seedstock producer or first handler has taken possession of them. If sheep or lambs are imported to the United States for immediate slaughter, there is no weight assessment at the time of slaughter, but the first handler is responsible for remitting $0.42 per head at the time of slaughter to the American Lamb Board.
Rate of Assessment
seven tenths of a cent ($.007) per pound of live lambs (ovine animals of any age) sold by producers, seedstock producers, exporters & feeders.
42 cents ($.42) per head of lambs purchased for slaughter by first handlers. A first handler is defined as an entity that takes possession of the lambs for slaughter (including custom or ethnic slaughter) or sale directly to the consumer. First handlers will usually be packing plants, but possibly producers, feeders or direct marketers.
Marketing agencies (sale barns) will not be assessed but will be required to collect assessments from the producer, feeder or seedstock producer and pass it on to the subsequent purchaser. Assessments for Direct Marketers Persons who are both producer and first handler (one who processes lamb or lamb products of their own production and markets the products) will be assessed one-half cent per pound on the live weight at the time of slaughter and will be required to pay an additional assessment of $.42 per head.
How It Works: Collection and Remittance
Each producer, feeder or seedstock producer is obligated to pay that portion of the assessment that is its share and pass it on to the subsequent purchaser ultimately reaching the first handler or exporter, who will remit the total assessment. If a person is both producer and first handler, they will be responsible for remittance.
Assessments Must be remitted to: American Lamb Board, 23029 Network Place, Chicago, Il 60673-1230. Assessments must be sent with Form LS-81, the Monthly Remittance Report.
Remittances are due no later than the 15th day of the following month in which lambs or lamb products were purchased for slaughter or export. Thus, assessments due on a lamb sold for slaughter in July will be due August 15th. If the 15th day of the month falls on a Sunday or holiday, then the assessment will be due the next business day. Late payment charges will be assessed by compounding unpaid assessments by 2% each month.
If a person has sought non-producer status as described under ‘Exemptions’, a copy of the form for Certification of Non-Producer Status needs to be provided to the subsequent purchaser. This form should be forwarded with remittances.
Additional Notes on Collection and Remittance
If more than one producer, feeder or seedstock producer shares the proceeds from the sheep sold, each is obligated to pay that portion of the assessment proportionate to its share of the proceeds.
Note: failure of a person to collect the assessment from a seller does not relieve the buyer of their obligation to pay the assessment.
The order allows for a 10-day hold period during which no assessments are due if the sheep is sold before the period expires. Thus, market agencies i.e., commission merchants, auction markets, brokers or livestock markets in the business of receiving lambs for sale or commission are generally exempt from paying the assessment. An exemption form must be completed by the seller and provided to the buyer.
It should be noted that although market agencies are exempt from the assessment, they are responsible for ensuring that they collect the $0.007 assessment from the seller and pass it on to the subsequent purchaser.
Any person seeking an exemption must complete Form LS-78, Certification of Non-producer Status, certifying that the sheep were resold no later than 10 days from the date on which the market agency acquired ownership. The completed form should be given to the subsequent lamb purchaser to include with remittances.
Reporting Requirements and Records
Books and records must be made available for inspection to verify any required reports. Records must be retained for three years. Each person collecting an assessment must give the person from whom the assessment was collected a receipt. This receipt should include:
- Name and address of the person collecting the assessment
- Name of the person who paid the assessment
- Number of head of lambs sold
- Total weight in pounds of lamb sold
- Total assessments paid by the producer, seedstock producer or feeder
- Date of sale
If you have any compliance questions please call 1-888-450-LAMB (5262).