Statewide Iowa — The USDA will spend half a billion dollars to help establish smaller scale meat processing plants to compete with the four major corporations that dominate the industry.
U-S Agriculture Secretary Tom Vilsack made the announcement in Council Bluffs.
Vilsack says spurring development of more meat processing facilities addresses some of the supply chain issues that cropped up as large pork, beef and poultry processing plants shut down early in the pandemic. In addition, Vilsack says smaller plants, closer to where animals are raised, give farmers more options for selling their livestock.
The 500 million will be distributed as grants, loans and technical assistance.
Vilsack is also committing 100 million dollars in USDA funds for meat processing facilities with fewer than 500 employees, to reduce the meat inspection fees. In addition, President Biden has signed an executive order calling for action on consolidation that not only limits where farmers can sell commodities, but has shrunk the number of companies selling things like seed and fertilizer.
Vilsack says the goal is to draw a bright line and define what constitutes unfair competition in the agricultural sector.
Republican Senator Chuck Grassley says he’s glad the Biden Administration is beefing up enforcement of the Packers and Stockyards Act and he applauds Vilsack’s effort to make markets competitive for all Americans. Iowa Agriculture Secretary Mike Naig says while much remains unclear, he’s optimistic about the Biden Administration’s efforts to address anti-competitive practices in agriculture.
