Oregon lawmakers hear proposals to shore up flagging brand inspection program, consider fee increases and a sunset

Senators heard testimony Thursday on two linked proposals to stabilize Oregonbrand inspection program: a staff summary of Senate Bill 986 said it would appropriate $1,200,000 to the Department of Agriculture to cover the programshortfalls; Senate Bill 1019 would raise per-head inspection fees, increase activation fees and place a repeal date (sunset) of Jan. 2, 2028, on the state-run brand program while allowing counties to create their own brand systems.

Senator Todd Nash, the sponsor of SB 986 and author of SB 1019, told the committee the brand inspection program had been self-funded for years but slid into deficit after fee increases were delayed and program costs rose. "They are bleeding out about $40,000 a month right now," Nash said, and staff implemented the full $1.35-per-head fee in October 2024 after prior delays. The $1.2 million request, Nash said, is an estimate to bring the program back to balance.

The issue drew consistent support from livestock producers, county-level industry representatives and the Oregon Cattlemen's Association. Dina Fiddler, Tri-County Cattlewoman president, said the sunset in SB 1019 is "the most important" part of the package because it forces accountability for both producers and the program. Diana Worth, a Klamath County rancher, and John Texara of the Deschutes County Livestock Association also testified in support, saying the bills start a needed conversation about modernizing the program and its finances. Oregon Cattlemen's Association President Matt McElligott emphasized the need to make the program whole and preserve services for producers.

Lisa Sharp Lohansen, director of the Oregon Department of Agriculture, told the committee the agency was neutral on the $1.2 million request and supports the governor's budget. She confirmed the brand inspection program is fee-supported and said the program lost ground when inflation outpaced fees and the agency absorbed unexpected costs, including a staffing bonus in 2022. Lohansen said ODA has raised the fee to $1.35, piloted operational changes to reduce inspector time and mileage, and is pursuing authority to add a time-and-mileage charge to inspections to better align costs.

Industry witnesses described practical impacts if the money is not provided. Senator Gerard asked what would happen without the $1.2 million; McElligott said the program would continue but producers would likely face higher charges. Testimony and committee staff summaries show earlier fee levels of $1.00 per head (historically) and the implemented $1.35 rate; SB 1019 would raise the per-head fee to $1.75 and increase activation and renewal fees.

Testimony at the SB 1019 hearing reflected mixed views on one provision that would exempt dairy cattle from brand inspection requirements. Some producers and witnesses said dairy operations now rely on electronic identification and different management systems, and that excluding dairies could help target program costs. Others, including representatives of industry advisory groups cited in testimony, warned that omitting dairy could shift more cost burden onto beef producers and reduce traceability benefits.

Several witnesses urged negotiation and amendments. McElligott said the Oregon Cattlemen's Association had developed a package with ODA and industry stakeholders that included increases in renewal and activation fees not all covered in SB 1019 as introduced; he asked the sponsors to continue discussions and refine the proposal.

No formal committee votes were recorded in the transcript. Sponsors and industry representatives said the intent of the sunset and fee changes is to force a collaborative, time-limited effort to modernize the brand inspection system and to ensure the program does not remain in chronic deficit.

The committee took public testimony but did not announce a final disposition on either bill at the hearing.

Ending

The brand inspection program hearings made clear how dependent the program is on per-head fees and how changes in administration, inflation and one-time expenses pushed the fund toward deficit. Producers urged a sunset and other accountability measures; ODA signaled operational steps and authority it can use to reduce costs. Lawmakers asked sponsors and industry to continue negotiating amendments before further committee action.