HURON, S.D., Nov. 3, 2022 – U.S. Department of Agriculture (USDA) Rural Development South Dakota State Director Nikki Gronli today announced that the Department is investing $2.2 million in grants through the first round of the Meat and Poultry Processing Expansion Program (MPPEP), and $10.5 million through the Meat and Poultry Intermediary Lending Program (MPILP.) Today’s announcement of $12.7 million for meat and processing programs in South Dakota delivers on USDA’s commitment 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.
“Rural Development is working to help farmers and ranchers have a fair chance to compete and a fair chance to make a living,” said Gronli. “This investment puts money back in pockets of those who provide the food for South Dakotans and when we support producer income, we are helping rural communities prosper.”
Today’s announcement provides funding for:
- GROW South Dakota will receive $8.125 million to assist approximately 16 meat and/or poultry processors at an average loan of $500,000 per business and will inject needed capital into the processing industry and advance economic opportunities. The funds will improve the livelihoods of community residents through job creation and access to fresher meat and poultry products while meeting pollution mitigation by reducing food miles for transportation from local growers initially and ultimately to local markets.
- The Planning and Development District III will receive $2.375 million to establish a financial resource that builds District III's lending capacity while focusing on a chronic economic challenge, namely creating value added agricultural alternatives. The fund will give local processing facilities a tool to improve access to markets; enhance operational efficiencies; retain and attract employees; and remain competitive in a challenging business environment.
- North Prairie Butchery LLC will receive $2.2 million to build a small beef and pork combination plant with the capacity to process more than 100 animals per week. They currently ranch near Faulkton, South Dakota. This modern, federally inspected facility will offer livestock producers the ability for custom harvest, packaging, and labeling. In addition, the business will offer to purchase locally raised, market-ready cattle and hogs to supply retail and wholesale business. The plant is expected to be fully operational by early 2024.
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.
The Meat and Poultry Intermediary Lending Program (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.
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.
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 https://www.rd.usda.gov/sd.
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