WASHINGTON– The US Department of Agriculture (USDA) announced its latest funding for meat and poultry expansion by awarding more than $35 million in grants to 15 independent meat processors in 12 states.

“For the past four years, the Biden-Harris Administration has advanced a sustainable vision of agriculture that prioritizes the needs of the hardworking producers and small business owners who keep rural communities strong,” said Agriculture Secretary Tom Vilsack said. “Through investments like these, USDA is working to give farmers and ranchers a fair chance to compete in the marketplace, which will increase local food options and lower grocery costs for American families.”

Since the Meat and Poultry Processing Expansion Program (MPPEP) began in 2022, USDA provided 74 awards totaling more than $325 million to expand processing capacity and strengthen the food supply chain. 

The agency noted this would be the final investment in MPPEP.

With many funded projects still in development, the agency said processing capacity at the recipient plants increased by 800,000 cattle, 14,000 hogs, 23 million chickens and 5 million turkeys annually. Also, these projects are serving almost 900 additional meat and poultry producers and have created more than 1,200 new jobs. 

The latest round of MPPEP grants ranged from $255,000 to $10 million.

Some examples include: 

• America’s Heartland Packing is receiving a $10 million grant to build a large beef processing plant outside of St. Louis, Mo. The plant will be LEED certified and will supply beef to domestic and international wholesalers, retailers, pet food companies and food manufacturers.  

• Mark’s Custom Meats in Pennsylvania is receiving a $750,000 grant to double the size of their current meat processing facility, serving an additional 15 producers and creating four new full-time jobs.    

• Damian's Craft Meats, a Latino-owned processor, is using a $4 million grant to build a new facility in southeastern Michigan to serve local cattle, hog, goat and lamb producers. Damian's will offer fee-for-service processing and will also purchase animals from local producers through competitive and transparent pricing.  

Small to medium-size operations in Arkansas, Colorado, Hawaii, Idaho, Indiana, Minnesota, Montana, Nebraska and New York will also receive funding.

Administration officials said the USDA has invested more than $1.4 billion in processing expansion in various ways.

“This is one of a number of different strategies we’ve used at USDA to expand access to more capacity,” Vilsack said during a Sept. 19 press call. “We have a loan guarantee program that’s funded 51 projects. We’ve established a re-lending program that’s funded 34 projects. We have a small processing assistance program that’s funded 75.”

During the call, USDA officials highlighted previous grant recipients who discussed how the funds helped their businesses grow. 

Carl Cushing, owner of Vermont Livestock Slaughter & Processing, explained that $100,000 in funds will help his facility at least double its capacity. As a small operation of 12 people, Cushing projected the plant can now produce 30-40 beef per week and 30-50 hogs of lamb per week when all the new equipment and processes are implemented.  

“Our new equipment allows the folks that we do work for to penetrate some of the more competitive markets by providing a better label and better packaging, so this is helping them as well,” Cushing said.

Zach Fine, chief executive officer of Holly Poultry in the Baltimore, Md. area, explained how the grant helped facilitate the purchase of equipment and increase the company’s processing capacity.

“The money from the grant resolved bottlenecks, improving our productivity and packaging capability to reach more people,” Fine said.

Fine said his company added value-added products and launched its retail brand, which came with a 30% increase in capacity thanks to the grants it received.

Holly Poultry, which now employs around 400 people, received a grant of more than $2 million from the USDA in Feb. 2023. 

Walter Schweitzer, director of Montana Premium Processing Cooperative in Havre and president of Montana Farmers Union, was also on the call and explained how the grant helped more than 70 producers in the cooperative.

The group received a $291,900 grant from MPPEP in Nov. 2022.

Another topic discussed during the conference call was the farm bill and whether Congress could pass the agriculture legislation by the end of 2024. The last farm bill signed into law was in 2018 and is usually passed every five years. Last year, a continuing resolution extended the previous farm bill until Sept. 30, 2024.

Both sides continue to work out conflicts on nutritional assistance and reference prices in the bill’s current form.

“I think it can get there,” Vilsack said of the farm bill. “I think if people are practical, realistic and reasonable, which is what often and normally happens when the farm bill actually gets done. I’ve got confidence in the leadership in the House and Senate as they begin their discussions in earnest that they’ll ultimately get to a resolution.”

Vilsack was asked during the press call about USDA inspector funding and how the agency ensures states get reimbursed for some of the eligible inspection services in fiscal year 2025.

Vilsack said the decision to fund the Food Safety and Inspection Service for USDA comes from Congress and the agency has “consistently requested” the resources to be able to hold up its responsibilities of inspection. 

Vilsack also addressed the proposed rules under the Packers and Stockyards Act and the “good, close cooperation” between the USDA and the Department of Justice and their roles in assisting and providing information about potential violations.

In the last week, several trade groups, including the Meat Institute and National Chicken Council, have publicly opposed the proposed rule changes.

Vilsack then talked about whether there are restrictions on the grant money if there’s a potential sale of these small meat processing plants to a large processor.

“There are provisions in the grant applications that basically address the question of whether or not a recipient of a grant can in fact turn around shortly thereafter and sell to one of the big four, for example,” Vilsack said. “There are restrictions. There are clawback provisions and things of that nature and these agreements to address that issue.”