WASHINGTON — The Biden-Harris administration is investing nearly $110 million to strengthen the supply chain, increase independent meat and poultry processing capacity, create more and improved markets for producers, and lower food costs, announced the US Department of Agriculture on July 11.

“The Biden-Harris Administration and USDA are advancing a sustainable vision of agriculture that prioritizes the needs of hardworking producers and small businesses and keeps rural communities strong,” said Agriculture Secretary Tom Vilsack. “Thanks to historic resources from President Biden’s American Rescue Plan, USDA is working to give farmers and ranchers a fairer chance to compete in the marketplace, which will increase local food options and lower costs for American families.”

The funding will pour into the Meat and Poultry Processing Expansion Program (MPPEP) and the Local Meat Capacity (Local MCap) Grant Program.

Under MPPEP, USDA and the New Hampshire Community Loan Fund partnered to provide over $83 million in grants to 24 processors across 15 states.

MPPEP grants ranged from $390,000 to $10 million. The funds will support the building of new plants, hundreds of jobs, better opportunities for local producers and entrepreneurs, and more options for consumers at the grocery store. Project examples include the following:

  • Simla Frozen Food Locker Co. LLC is receiving a $450,000 grant to build a new facility across the street from its existing facility in rural Colorado to expand their processing capacity. This project will allow the family-run business to receive USDA inspection and sell locally-produced proteins into wholesale markets such as restaurants and grocery stores. The company expects to serve 160 additional producers and create four full-time jobs through this project.
  • McRez Packing International LLC is receiving a $390,000 grant to refurbish a previously shuttered industrial facility in New York to expand processing capacity. The project is expected to serve up to 2,500 new producers and create 110 jobs.
  • North State Processing LLC is receiving a $10 million grant to build a new facility in Hamlet, NC, to process cattle, ostrich, emu, water buffalo and alpaca. A new processing company created by local and experienced North Carolina producers, the company anticipates serving 37 producers and creating 54 jobs through the project.
  • NF Packing Inc. is receiving a $1.4 million grant to build and equip a new processing facility for its start-up business in Walworth County, Wis. The company anticipates serving 75 producers and creating 20 jobs as a result of the project.

A complete list of grants is available here.

 So far, USDA’s Rural Development has provided 59 awards totaling over $291.4 million through MPPEP.

Under the Local MCap program, USDA is awarding $26.9 million to 33 projects in 23 states to expand processing within the meat and poultry industry. The investment builds on the first round of $9.5 million awarded to 42 projects.

 The second round of grants will support Equipment Only and Processing Expansion project types. Simplified equipment only projects will fund projects between $10,000 and $250,000 so that businesses can purchase processing equipment such as meat grinders, stuffers and smokers. Processing expansion projects are eligible for $100,000 to $5 million to aid an increase in processing or rendering capacity.

 Examples include the following:

  • White Oak Pastures, Bluffton, Ga., will use a Local MCap grant to support the cost of converting its poultry processing facility into a dual use facility that can also process lambs, goats and hogs. The project will expand the company’s livestock processing capacity by approximately 30%.
  • Nordik Meats, Viroqua, Wis., will use a Local MCap grant to purchase a grinder, a meatball maker and packaging equipment to expand processing capacity and serve an additional 50 local producers. Nordik Meats plans to increase the number of livestock processed annually by 100% over two years, implement new processing technologies, train 12 existing staff, hire four new employees and benefit 350 local small family farms.
  • Seven Hills Food Co., Lynchburg, Va., will use a Local MCap grant to make plant enhancements to address bottlenecks currently hindering plant capacity while adding rendering capacity, new value-added products and a farmer liaison for coordinating expanded production.