New USDA Fund to Expand Local Meat and Poultry Processing Capacity
$500 million plus $150 million to help existing small and very small processors
In This Issue
• New USDA Funding to Address Critical Shortage of Local Meat Processing
• ICYMI: New Co-op Project Aims to Boost Farm Economy in Central Illinois
USDA Fund Aims to Expand Local Meat Processing
In its latest initiative this year to build opportunities for local food producers, the U.S. Department of Agriculture announced on Friday (July 9) that it has created a $500 million fund to expand production capacity and increase competition in meat and poultry processing. USDA is also allotting $150 million to help existing small and very small processors deal with COVID impacts, compete and reach more customers.
These new federal investments will address one of the biggest hindrances to expanding smaller-scale and more localized livestock production: the lack of sufficient processing facilities.
The press release led with the following:
“USDA is announcing it intends to make significant investments to expand processing capacity and increase competition in meat and poultry processing to make agricultural markets more accessible, fair, competitive, and resilient for American farmers and ranchers. This is one of several key steps that USDA will take to increase competition in agricultural markets, pursuant to President Biden’s Executive Order on promoting competition and as part of USDA efforts to build a more resilient supply chain and better food system. Together, USDA’s actions will help farmers, ranchers, farmworkers and consumers all get a fair shake.
“Specifically, USDA announced its intent to invest $500 million in American Rescue Plan funds to expand meat and poultry processing capacity so that farmers, ranchers, and consumers have more choices in the marketplace. USDA also announced more than $150 million for existing small and very small processing facilities to help them weather COVID, compete in the marketplace and get the support they need to reach more customers. USDA is also holding meatpackers accountable by revitalizing the Packers and Stockyards Act, issuing new rules on ‘Product of USA’ labels, and developing plans to expand farmers’ access to new markets.”
The release quotes Agriculture Secretary Tom Vilsack:
This is a once in a generation opportunity to transform the food system so it is more resilient to shocks, delivers greater value to growers and workers, and offers consumers an affordable selection of healthy food produced and sourced locally and regionally by farmers and processors from diverse backgrounds. I am confident USDA’s investments in expanded capacity will spur millions more in leveraged funding from the private sector and state and local partners as our efforts gain traction across the country.
Click the first button to read the full press release, which is long and full of detail. Click the second button to register for an online call TODAY at 2:30 central (sorry about the short notice) on this topic featuring Vilsack and Senators Charles Grassley (R-Iowa) and Jon Tester (D-Montana).
ICYMI: New Co-op Project Aims to Boost Farm Economy in Central Illinois
Yesterday’s Local Food Forum ran late because we had a big story — about the launch of The Central Illinois Farm-Fresh Enterprise Development Cooperative (FarmFED Co-op) — and we don’t want anyone to miss it.
FarmFED is designed around an innovative co-op produce processing facility, with the goals of providing Central Illinois farmers with greater income assurance and access to consumers who want more local food but have difficulty finding it. There will also be a commercial kitchen for local entrepreneurs who want to make value-added products.
Katie Funk and Jeff Hake — the couple who farm Funks Grove Heritage Fruits and Grain near Bloomington, Illinois — are driving forces behind the Co-op. They have initiated a campaign to raise $100,000 from shares purchased by the region’s farmers who want to utilize the facility and its services.
Click below to access yesterday’s issue and read all about it.