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USDA Invests $3.3 Million to Strengthen Food Supply Chain and Rural Economies

Michael Frye
Release Date

HURON, S.D., Feb. 22, 2023 – U.S. Department of Agriculture (USDA) Rural Development South Dakota State Director Nikki Gronli today announced that the Department is investing $3.3 million to increase independent meat and poultry processing capacity, expand market opportunities for farmers and create jobs in South Dakota.

“Through this investment, Rural Development will continue to work tirelessly to give farmers and ranchers a fair chance to compete in the marketplace,” Gronli said. “When we expand our economy in small towns and rural places we can reinvest in the communities that offer so much to our nation.” [Audio: MP3, 429KB, 18 seconds]

CNF Enterprises, Inc., will receive $3.3 million to help offset the costs associated with the construction of a new 30,000 square foot processing facility in New Underwood, South Dakota. The new facility will have the capacity to process 4,000 head per year including beef, pork, lamb, and buffalo. This operation will provide custom USDA inspected meat processing. CNF Enterprises is a new company that was formed to help meet the increasing demand for high quality locally sourced meat products.

“South Dakota farmers and ranchers have been asked to produce more to meet increasing demand across the country and around the world,” said Gronli. “A sustainable plan for producers that prioritizes the needs of our communities and small businesses will strengthen our food supply chain and brings value back to rural people and places.” [Audio: MP3, 537KB, 22 seconds]

USDA is providing $59 million in grants to five independent processors under the Meat and Poultry Processing Expansion Program (MPPEP). The funding will help build new processing plants, create hundreds of jobs, give local producers and entrepreneurs more options and business opportunities, and give consumers more options at the grocery store.

In November, USDA awarded $75 million to 22 projects under MPPEP. In January, USDA awarded an additional $12 million to three more MPPEP projects. The program is one of many actions that USDA is taking to expand processing capacity, create more revenue streams and market opportunities for producers, and transform the nation’s food system.

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.

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