During a visit to Dramm Corp. on Oct. 30, USDA Deputy Secretary Xochitl Torres Small announced that the Biden-Harris Administration is making investments that will strengthen American farms and businesses. Torres Small says the funding will expand innovative domestic fertilizer production and increase independent meat and poultry processing capacity, which will in turn increase competition and lower fertilizer costs for farmers and food costs for consumers.
USDA announced $20.2 million in awards to 26 projects through the Local Meat Capacity (Local MCap) grant program to expand processing capacity within the meat and poultry industry. This will add new jobs to their local communities and provides producers more options to ensure their products get to market, USDA noted.
USDA is also awarding $120 million to fund six fertilizer production projects in Arkansas, California, Illinois, South Dakota, Washington and Wisconsin through the Fertilizer Production Expansion Program (FPEP), which is funded by the Commodity Credit Corporation and provides funding to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more, the release said.
“When we invest in domestic supply chains, we drive down input costs and increase options for farmers,” Torres Small said in a release. “Through today’s investments to make more fertilizer and process meat locally, the Biden-Harris Administration is bringing jobs back to the United States, lowering costs for families, and supporting farmer income.”
Local Meat Capacity Grants
This final set of awards through Local MCap is for both Simplified Equipment Only and Processing Expansion project types. Two additional projects (totaling $7.8 million), which have been selected to move forward, are in final review with USDA, the release said.
This final set of awards for simplified equipment and processing expansion covers projects in 21 states for processing equipment such as meat grinders, stuffers and smokers. Processing Expansion projects increase processing or rendering capacity through activities including facility upgrades, equipment purchases and training.
Here are some examples of funded projects:
- Haen Meats in northeastern Wisconsin, will use funding to purchase new equipment, including stuffers, hanging lines, three truck smokehouses, automatic grinders, and energy-saving cooling mixers. These upgrades will boost their processing capacity, engage an additional 121 local producers, and create 12 new jobs, further supporting the local community.
- Granite State Packing, Inc., located in the Connecticut River Valley, N.H., is receiving a Local MCap grant to purchase new slaughter, cutting, and packaging equipment. This will increase the business’ pork slaughter and processing capacity, benefitting 100 local producers and increase the availability of local pork products. Additionally, 15 new jobs will be created.
- Montana Premium Processing Cooperative in Hill County, Mont., provides critical tribal slaughter support and regional employment opportunities. Using Local MCap funding, the cooperative will boost production capacity by 225% and invest in new equipment including hoists, vacuum sealers, a bandsaw, and steel containers which will enhance both production efficiency and quality control.
The first round of funding was announced in March 2024, and a second round of funding was announced in July 2024. With today’s announcement, USDA has funded a total of 97 projects for $55.8 million through Local MCap. The program is administered by the Agricultural Marketing Service (AMS) and is authorized by the American Rescue Plan.
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