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Biden-Harris Administration Announces $70 Million through the American Rescue Plan to Increase and Expand Meat and Poultry Processing Capacity in Carroll, Cherokee, Floyd and Howard Counties

Name
Cecilia Lynch
Release Date
Nov 02, 2022

Part of More Than $223 Million in Grants and Loans Nationwide to Support 32 Independent Processing Projects to Build Capacity and Increase Economic Opportunities for Meat and Poultry Processors and Producers around the Country

DES MOINES, Iowa, November 2, 2022 – U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield today announced that the Department is investing $16,377,590 in three grant projects in Iowa through the first round of the Meat and Poultry Processing Expansion Program (MPPEP) and $15,000,000 through the Meat and Poultry Intermediary Lending Program (MPILP). The Department is also making a $38,720,000 loan through the Food Supply Chain Guaranteed Loan Program (FSCGLP). Today’s announcement of $223 million for meat and processing programs nationwide delivers on President Biden‘s commitments through the American Rescue Plan to expand meat and poultry processing capacity, which in turn increases competition, supports producer income, strengthens the food supply chain and creates jobs and economic opportunities in rural areas.  These announcements support the Biden-Harris Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain.

“Since President Biden laid out a commitment at the start of this year, USDA has worked tirelessly to give farmers and ranchers a fair chance to compete in the marketplace,” said Secretary of Agriculture Tom Vilsack. “By jumpstarting independent processing projects and increasing processing capacity, these investments create more opportunities for farmers and ranchers to get a fair price, while strengthening supply chains, delivering more food produced closer to home for families, expanding economic opportunity and creating jobs in rural America.”

“Iowans need access to an equitable, stable food supply chain and opportunities to maintain jobs and businesses in rural communities,” said Director Greenfield. “The Biden-Harris Administration has sought out every opportunity to expand meat and poultry processing and to deliver funding opportunities to food production projects in the middle of the supply chain. These investments announced today place Iowa center stage in the effort to create resilience in food manufacturing, to promote employment, and to strengthen Iowa’s rural communities.”

Iowa projects announced today:

Region XII Council of Governments Inc., an association for cooperative planning, based in Carroll County, will use a $15,000,000 grant from MPILP to increase the number of meat and poultry producers in the state, provide capital for investment, and promote employment in the processing sector.

Cherokee Locker Investment Inc. in Cherokee County is receiving a $542,425 MPPEP grant to build a new mixed species processing facility to increase capacity. The new facility will make Federal inspections possible to enable producers to sell meat in local retail markets and online.  

Upper Iowa Beef LLC, an independently owned beef harvest and processing facility in Lime Springs, will use a $8,871,440 MPPEP grant to expand the facility in Howard County and increase capacity to accommodate  independent livestock producers.

Pure Prairie Farms Inc. in Charles City is receiving a $6,963,725 MPPEP grant and a $38,720,000 loan from the FSCGLP. The funding will help the poultry processor in Floyd County expand and renovate a shuttered processing plant.

MPPEP was designed to support capacity expansion projects in concert with other private and public finance tools. Today’s announcement is the first round of funding made available through Phase I of MPEPP. Additional announcements are expected in the coming weeks. USDA will also soon begin taking applications for a new phase to deploy an additional $225 million, for a total of up to $375 million, to provide gap financing for independent processing plant projects that fill a demonstrated need for more diversified processing capacity. For more information about MPPEP, click here.

MPILP provides grant funding to nonprofit intermediary lenders who finance – or plan to finance – the start-up, expansion, or operation of slaughter, or other processing of meat and poultry. The objective of the MPILP is to strengthen the financing system for independent meat processors, and to create a more resilient, diverse, and secure U.S. food supply chain. In the first round of MPILP $75 million was awarded to eight lenders in seven states. Applications for second cycle ($125 million) are currently being accepted and are due December 31, 2022.

Through FSCGLP, USDA partners with lenders to guarantee loans to help eligible entities expand meat and poultry processing capacity and strengthen the U.S. food supply chain. Lenders provide the loans to eligible cooperatives, corporations, for profits, nonprofits, Tribal communities, public bodies and people in rural and urban areas. Since the FSCGLP was launched in December 2021, more than $250 million in loans have been guaranteed for projects in the middle of the food supply chain. Four of these, announced today and totaling more than $75 million, are for meat and poultry processing businesses.

For a full list of awards under these programs, visit: www.rd.usda.gov/sites/default/files/11-02-2022-Food-Systems-Transformation-Chart-OSEC.pdf (PDF, 211 KB)

Today’s announcement is one of many actions that USDA is taking to expand processing capacity and increase competition in meat and poultry processing to make agricultural markets more accessible, fair, competitive, and resilient for American farmers and ranchers, and builds upon the Department’s efforts to transform the nation’s food system. Additional information on all these programs is available at usda.gov/meat.

Contact USDA Rural Development

USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton, and Waverly.

To learn more about investment resources for rural areas in Iowa, call (515) 284-4663 or visit www.rd.usda.gov/ia. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, promoting competition and fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.

 

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