July 3, 2023

USDA grants of US$115 million aim to boost small meat and poultry operators

The US Department of Agriculture (USDA) has announced grants worth US$115 million for smaller meat and poultry operators in 17 states, as part of ongoing efforts to counter the consolidation trend in food production, KFYR TV reported.

These grants, the latest in a series of awards by President Joe Biden's administration, are aimed at promoting meat and poultry processing, benefiting farmers, and creating job opportunities in rural areas.

US Agriculture Secretary Tom Vilsack, a former governor of Iowa, highlighted the fact that while 7.5% of farms account for 89% of all farming income, it is crucial to ensure that small farmers receive a larger share of the income to reverse the decline in population and wealth in rural communities.

Although Vilsack acknowledged that changing consolidation trends would take time, he emphasised the need for this transformation to prevent a decline in farm families, customers for small-town businesses, and rural school enrolment.

The funding announced includes 10 awards totalling US$77 million for recipients in 12 states through a program supporting the establishment or expansion of meat and poultry processing plants.

Among the recipients are Mountain West Economic Development in Montana, which will receive US$15 million to enhance slaughterhouse operations in the state's Flathead Valley, and the Farmers Union Foundation, which will receive US$800,000 to assist smaller processors in Minnesota, Montana, North Dakota, South Dakota, and Wisconsin.

Additionally, the USDA granted US$38 million to support the expansion of slaughterhouses for independent producers in five states, bringing the total number of awards to five.

The projects receiving funding span across Colorado, Connecticut, Georgia, Indiana, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Montana, New York, North Dakota, Ohio, South Dakota, Tennessee, Texas, and Wisconsin. These investments aim to bolster the operations of smaller meat and poultry operators, revitalise rural communities, and promote a more equitable distribution of income in the agricultural sector.

-      KFYR TV