Government Grants Exceed $35 Million
September 20, 2024
In a recent announcement, USDA Secretary Tom Vilsack revealed that over $35 million in grants will be awarded to 15 independent meat processors across 12 states. This funding aims to enhance processing capacity, foster competition, expand market opportunities for U.S. farmers, and create jobs in rural areas. This investment marks the conclusion of the Meat and Poultry Processing Expansion Program (MPPEP), established under President Biden’s American Rescue Plan in 2022.
These grants align with the president’s Investing in America initiative and support the administration’s Action Plan for a Fairer, More Competitive, and Resilient Meat and Poultry Supply Chain, which focuses on increasing independent processing capabilities.
“For the past four years, the Biden-Harris Administration has championed sustainable agriculture that supports hardworking producers and small business owners vital to rural communities,” Vilsack stated. “Through investments like these, USDA aims to provide farmers and ranchers a fair chance to compete, enhancing local food options and reducing grocery costs for American families.”
Since launching MPPEP, USDA has awarded 74 grants totaling over $325 million to boost processing capacity and strengthen the food supply chain. Ongoing projects have increased processing capacity by over 800,000 cattle, 14,000 hogs, 23 million chickens, and 5 million turkeys annually, benefiting nearly 900 additional producers and creating over 1,200 new jobs.
The funding will support the establishment of new processing plants, generate hundreds of jobs, and offer local producers and entrepreneurs improved business prospects. Notable examples include:
- America’s Heartland Packing will receive a $10 million grant to construct a large beef processing facility near St. Louis, Missouri, which will be LEED certified and serve various markets.
- Mark’s Custom Meats in Pennsylvania is set to receive $750,000 to expand its facility, enabling it to serve an additional 15 producers and create four new full-time positions.
- Damian’s Craft Meats, a Latinx-owned business, will use a $4 million grant to build a new facility in southeastern Michigan, providing processing services to local cattle, hog, goat, and lamb producers.
The awarded funds will impact communities in Arkansas, Colorado, Hawaii, Idaho, Indiana, Michigan, Minnesota, Missouri, Montana, Nebraska, New York, and Pennsylvania.
Promoting Fair and Competitive Markets
MPPEP is part of a broader USDA strategy to enhance processing capacity, generate revenue streams for producers, and improve market competitiveness in the food and agricultural sectors. As part of President Biden’s Executive Order on Promoting Competition, USDA is taking comprehensive steps to enhance competition in these markets.
Since the Biden-Harris Administration began, USDA has invested over $1.4 billion to support the development of small- and medium-sized processing facilities, aiming to create a more resilient and diverse U.S. food supply chain.
Additionally, USDA’s Food Safety and Inspection Service (FSIS) has hosted small plant roundtables to assist small businesses in navigating federal regulations. From 2023 to 2024, 11 roundtables were conducted to facilitate communication and support small plant operations.
USDA is also promoting market transparency. In February 2024, it finalized a rule allowing the “Product of USA” or “Made in the USA” labels only for meat and poultry products from animals born, raised, slaughtered, and processed in the U.S., ensuring clarity for consumers.
In the past three and a half years, USDA has implemented significant new rules under the Packers and Stockyards Act of 1921 to enhance transparency in contracting, address unfair practices, and promote fairness in agricultural markets. With several new rules in place, USDA is revitalizing longstanding fair market laws to empower producers.
USDA Rural Development also provides loans and grants to enhance economic opportunities, create jobs, and improve quality of life in rural areas, supporting infrastructure, business development, housing, and community facilities. For more information on these investments, visit the Rural Data Gateway.