U.S. Department of Agriculture Secretary Tom Vilsack recently outlined a plan that seeks to generate fairer prices for farmers and consumers alike.
According to a USDA May 26 news release, other elements of the plan are designed to bolster the American food supply chain, promote fair and competitive agricultural markets and prevent abuse of farmers by poultry processors.
“For too long, farmers and ranchers have seen the value and the opportunities they work so hard to create move away from the rural communities where they live and operate," Vilsack said in the release. “Under the leadership of President Biden and Vice President Harris, USDA is committed to making investments that promote competition — helping support economic systems where the wealth created in rural areas stays in rural areas — and strengthening rules and enforcement against anticompetitive practices. The funding and new rule we’re announcing today ultimately will help us give farmers and ranchers a fair shake, strengthen supply chains and make food prices fairer.”
According to the release, the strategy is being touted as the next step in Biden’s landmark whole-of-government effort to promote competition in the American economy and satisfy essential elements of the Meat and Poultry Supply Chain Action launched earlier this year by Biden, Vilsack and Attorney General Merrick Garland. Reportedly, these actions aim to decrease market dominance, which causes lower prices to be paid to producers while higher prices are paid by consumers.
As part of the government’s plan to strengthen the food supply chain, Vilsack announced USDA is investing $200 million in the new Meat and Poultry Intermediary Lending Program with a goal of creating opportunities for small businesses and entrepreneurs in rural communities, according to the release. The program will provide grants of up to $15 million to nonprofit lenders, including private nonprofits, cooperatives, public agencies and tribal entities.
As it is now, poultry processors maintain control over much of the process of raising chickens through take-it-or-leave-it contracts with growers. Vilsack also outlined plans for a $25 million investment in workforce training programs for meat and poultry processing workers with American Rescue Plan Act Section 1001 funding, the release reported.
