U.S. Agriculture Secretary Tom Vilsack has announced that the Biden-Harris administration is set to invest $89 million to finance the startup and expansion of independent meat processors across the country.
Agriculture Department (USDA) officials also outlined initial steps the government is taking to create a more competitive marketplace for seeds and other agricultural inputs. The added resources are being touted as part of the administration’s action plan for a fairer, more competitive and more resilient meat and poultry supply chain, which dedicates resources to expand independent processing capacity.
Throughout his term, Biden has insisted the practice of creating fairer markets leads to more opportunities for family farmers and helps lower prices at the grocery store.
“Under President Biden’s leadership, USDA is laser-focused on standing up for America’s farmers and ranchers by expanding processing capacity, creating fairer markets, and more revenue streams and market opportunities, which helps bring down food costs for families at the grocery store,” Vilsack said in a news release.
“[These] investments and actions to back the startup and expansion of independent processing capacity and boost market fairness in seeds and other key agricultural inputs will promote competition, support producer income, strengthen the supply chain, and increase economic opportunity in rural communities,” he added.
Vilsack made the announcement of the new investments at the National Farmers Union convention in San Francisco, highlighting that the plan calls for providing $89 million in grants under the Meat and Poultry Intermediary Lending Program (MPILP), all of it aimed at increasing available financing for independent processors, alleviating bottlenecks and creating opportunities for small businesses and entrepreneurs in rural communities.
Last fall, the USDA awarded $75 million in grants to eight nonprofit lenders in seven states under the first round of MPILP.
The latest windfall is set to be distributed in seven states (Alabama, Georgia, Maine, Nebraska, North Dakota, Oklahoma and South Dakota.), all of which will establish revolving loan funds to support meat and poultry processors' startup, expansion, and operation.
As part of its efforts to enhance fair and competitive markets and in keeping with Biden’s executive order on “promoting competition in the American economy", USDA sought input from the public about the impacts of concentration, market power and intellectual property in the market for seeds and other agricultural inputs.
