The National Cattlemen’s Beef Association is awaiting USDA’s decision on funding plans for new packing-plant capacity.
NCBA Vice President of Government Relations Ethan Lane says while USDA has not detailed its plans for the $500 million, the agency has been directing its focus on more regional processors.
He says NCBA continues to have really robust dialogue with the Biden administration, and they’ve stressed to USDA they don’t want the new packing capacity to go to the major packers.
U.S. Agriculture Secretary Tom Vilsack first announced the funding for packers in late July, but then asked for recommendations from stakeholders. Lane says USDA had planned to make some funding announcements “at the end of the year.” So, the wait continues.
Even without federal funds in hand, at least four medium-sized independent packing plants have been announced in Idaho, Iowa, Missouri and Nebraska with plans for construction throughout the next year.
USDA earlier this month announced $100 million under the Food Supply Chain Guaranteed Loan Program to make available nearly $1 billion in loan guarantees for food processing and other essential infrastructure for the food supply chain. The program allows guaranteed loans with lenders for up to $40 million for businesses to expand facilities or add new equipment.
