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USDA Adds Support for Farmers, Ranchers, Producers

At the Jan. 9 American Farm Bureau Federation annual convention, Agriculture Secretary Tom Vilsack announced several major developments at the U.S. Department of Agriculture that will benefit farmers, ranchers and producers across the nation.

“At USDA, our goal is to provide all farmers, including new and underserved producers, with the opportunity to receive the assistance they need to continue farming, to build and maintain their competitive-edge, and to access more, new, and better markets,” said Vilsack, who spoke at the American Farm Bureau Federation annual convention. “Working together we can ensure American agriculture is as resilient as ever and will do so by implementing a holistic approach to emergency assistance, by lowering input costs through investments in domestic fertilizer production, and by promoting competition in agricultural markets.”

Vilsack announced that USDA continues to make progress in the following areas by:

  • Assisting producers facing high input costs to access domestic, innovative fertilizer capacity.
  • Improving risk protection for underserved producers.
  • Investing in new choices and meat processing capacity for livestock producers.
  • Providing relief for producers impacted by disaster and the pandemic.

These programs and efforts are part of the Biden-Harris Administration’s commitment to lower costs for producers, increase competition and access to market opportunities, and ensure equity in designing and developing programs to help all producers. Additionally, the announcements are a continuation of the Biden-Harris Administration’s focus on targeting assistance based on need, reaching everyone who is eligible, and removing the bureaucratic burden on producers.

USDA will soon begin accepting public comments on environmental and related aspects of 21 potentially viable projects to increase fertilizer production across the United States totaling up to $88 million. These applicants have requested grant funding through the first round of the Department’s newly established Fertilizer Production Expansion Program. This program is one of many ways the Biden-Harris Administration invests in the agricultural supply chain right here at home. Investing in projects to increase fertilizer production will bring production and jobs back to the United States, promote competition and support American goods and services. Under the leadership of President Biden and Vice President Harris, USDA continues to create a competitive, resilient, secure and sustainable economy to support opportunities for local businesses and people across this nation. The Fertilizer Production Expansion Program is a critical part of that effort.

The Department is considering fertilizer production projects in Alabama, Arizona, Colorado, Florida, Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Ohio, Oregon, Texas, Washington, and Wisconsin. Additional information is available at www.rd.usda.gov/fpep-environmental-review-comments.

The Fertilizer Production Expansion Program is part of a whole-of-government effort to promote competition in agricultural markets. USDA has also released a summary of the comments (PDF, 953 KB) received through a Request For Information on Access to Fertilizer: Competition and Supply Chain Concerns, which highlights the variety of concerns about the limited competition and dependence of foreign sources for significant amounts of fertilizer.

The Noninsured Crop Disaster Assistance Program provides financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occur due to natural disasters. There is a Congressionally mandated fee waiver for basic coverage for underserved producers. However, a previous set of procedures and regulations created a paperwork burden that stood in the way of many producers taking advantage of the basic coverage option. The recent rule removes barriers and establishes procedures through which an underserved producer with a CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, on file prior to the applicable NAP application closing date will automatically receive basic coverage for any NAP-eligible crops they plant. Underserved producers on file for 2022 will also receive retroactive basic coverage. Like all other covered producers, underserved producers will still need to file a notice of loss and apply for benefits.

In addition to the basic catastrophic level coverage under NAP, producers can buy-up higher levels of coverage by paying a premium. Underserved producers receive a 50 percent discount on any premiums. Producers who are interested in obtaining NAP coverage for 2023 should also contact their local FSA county office for information on eligibility, coverage options and applying for coverage. FSA also plans to target outreach to previous producers of NAP-eligible crops to ensure these producers are aware of their options. For more information, reference our NAP fact sheet (PDF, 622 KB).

USDA is investing more than $12 million to expand independent meat and poultry processing capacity in Ohio, Michigan and Minnesota. Vilsack announced that Meat and Poultry Processing Expansion Program grants will help fund the following projects:

  • In Ohio, International Food Solutions Inc. is receiving $9,575,250 to help redevelop and expand a vacant building in Cleveland into a plant with the capacity to process 60 million pounds of poultry. The expansion will include cold and dry storage and two processing lines. The project will create 227 good-paying jobs. International Food Solutions is a woman- and minority-owned business that has produced thousands of prepared meals for K-12 students receiving free and reduced-price school meals.
  • In Michigan, grower-owned cooperative Michigan Turkey Producers is receiving $1,531,204 to help upgrade the hot water system, wastewater treatment facilities and refrigerated trailers to accommodate an expansion at its plant in Grand Rapids. With recent automation upgrades and the continuing expansion made possible by the grant, the plant will be able to add a shift and double its processing capacity to 10 million turkeys annually. The additional capacity also will allow the plant to provide back-up for other facilities of similar size in neighboring states.
  • In Minnesota, Benson + Turner Foods Inc. is receiving $962,954 to build a 6,788-square-foot cattle and hog processing plant on the White Earth Indian Reservation and storefront near Waubun. The grant will help the company achieve its goal of building a sustainable business that benefits the local economy by using locally grown livestock and providing new opportunities for producers to market their products by providing USDA-certified processing for them.

This is in addition to recent announcements of $74 million in 22 MPPEP projects, $75 million in grants through the Meat and Poultry Intermediary Lending Program, $3.9 million in Value Added Producer Grants, and $5.7 million in Food Supply Chain Loan Guarantees, all supporting meat and poultry processing. These programs are a few of the suite of programs facilitating investment in meat and poultry processing.

USDA is announcing two new programs that wrap-up and fill remaining gaps in previous natural disaster and pandemic assistance. To be eligible for ERP Phase Two, producers must have suffered a decrease in allowable gross revenue in 2020 or 2021 due to necessary expenses related to losses of eligible crops from a qualifying natural disaster event. Assistance will be primarily to producers of crops that were not covered by Federal Crop Insurance or NAP, since crops covered by Federal Crop Insurance and NAP were included in the assistance under ERP Phase One.

To be eligible for PARP, an agricultural producer must have been in the business of farming during at least part of the 2020 calendar year and had a 15% or greater decrease in allowable gross revenue for the 2020 calendar year, as compared to a baseline year.

The ERP Phase 2 and PARP application period is open from Jan. 23 through June 2. For more information, producers should contact their local USDA service center or reference the ERP Phase 2 fact sheet (PDF, 1.7 MB), PARP fact sheet (PDF, 540 KB) or the ERP Phase Two-PARP Comparison fact sheet (PDF, 2.5 MB).

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USDA, Oregon Sign Meat Inspection Agreement

The U.S. Department of Agriculture’s Food Safety and Inspection Service and the state of Oregon have finalized a cooperative agreement, under which the state inspection program may inspect meat products produced for shipment within the state.

The state inspection program must develop, administer, and enforce requirements “at least equal to” those imposed under the Federal Meat Inspection Act.

“Today’s announcement with Oregon will help strengthen our nation’s food system and help prevent supply chain bottlenecks,” said USDA’s Deputy Under Secretary Sandra Eskin. “This program is especially helpful to small meat and poultry processors in building their local and state marketplaces.”

With the addition of Oregon, 28 states have state inspection programs. In states with inspection programs, establishments have the option to apply for federal or state inspection, but product produced under state inspection is limited to intrastate commerce. FSIS provides up to 50 percent of the state’s operating funds, as well as training and other assistance.

States are key FSIS partners and formal working relationships are reflected in cooperative agreements between FSIS and affected state agencies. State Meat and Poultry Inspection programs are an integral part of the nation’s food safety system with about 1,900 small and very small meat and poultry establishments inspected under state MPI programs.

FSIS provides guidance to state MPI programs under these agreements, reviews each state MPI program and its requirements and activities at least annually, and provides approximately $60 million dollars annually to support the state MPI programs currently operating.

In addition to Oregon, FSIS has signed state inspection agreements with Alabama, Arizona, Delaware, Georgia, Indiana, Illinois, Iowa, Kansas, Louisiana, Maine, Minnesota, Mississippi, Missouri, Montana, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, and Wyoming.

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USDA Commits $215M to Enhance US Food Supply Chain

U.S. Department of Agriculture is making available up to $215 million in grants and other support to expand meat and poultry processing options, strengthen the food supply chain and create jobs and economic opportunities in rural areas. Announced on the one-year anniversary of President Biden’s Executive Order 14017 “America’s Supply Chains,” the funding 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.

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“For too long, ranchers and processors have seen the value and the opportunities they work so hard to create move away from the rural communities where they live and operate,” USDA Secretary Tom Vilsack said. “Under the leadership of President Biden and Vice President Harris, USDA is committed to making investments to support economic systems where the wealth created in rural areas stays in rural areas. The funding we’re announcing today ultimately will help us give farmers and ranchers a fair shake and strengthen supply chains while developing options to deliver food produced closer to home for families.”

USDA Rural Development will make $150 million available in grants to fund startup and expansion activities in the meat and poultry processing sector. USDA’s National Institute of Food and Agriculture will provide another $40 million for workforce development and training and the Agricultural Marketing Service will provide $25 million to offer technical assistance to grant applicants and others seeking resources related to meat and poultry processing.

These opportunities are part of the Biden-Harris Administration’s commitment to fight monopolization and promote competition across the economy. They are also aligned with USDA’s vision of a food system that supports health and ensures producers receive a fair share of the food dollar while advancing equity and combating the climate crisis.

USDA Rural Development is making $150 million of American Rescue Plan Act funding available through the Meat and Poultry Processing Expansion Program. USDA is offering grants of up to $25 million each to expand processing capacity through a variety of activities, including but not limited to construction, expansion of existing facilities and acquisition of equipment.

USDA encourages applications that benefit smaller farms and ranches, new and beginning farmers and ranchers, tribes and tribal producers, socially disadvantaged producers, military veteran producers and underserved communities.

USDA will host two informational webinars to provide information on MPPEP. The first, Feb. 28 at 2 p.m. Eastern Time, will provide an overview of the program. The second, March 7 at 2 p.m. Eastern Time, will cover application requirements. Registration information for the webinars is available on the MPPEP website.

For additional information, applicants and other interested parties are encouraged to visit the MPPEP website: www.rd.usda.gov/mppep. Questions may be submitted through the website or sent to MPPEP@usda.gov.

All application materials can be found at www.rd.usda.gov/mppep or at www.grants.gov. Applications must be received by 11:59 p.m. Eastern Time on April 11, 2022, through www.grants.gov.

USDA’s National Institute of Food and Agriculture will invest an additional $40 million through existing workforce development programs to provide a pipeline of well-trained workers to meet the demand for both current processors and increased independent processing capacity. The primary investment will be through competitive grants to support workforce training at community, junior and technical colleges with programs specifically for meat and poultry processing.

A Request for Applications will be published in April. Additional investments will leverage existing regional USDA education and Extension networks and establish new, or supplement select existing, Centers of Excellence at Minority-serving Institutions focused on meat and poultry research, education and training. Each of these investments is designed to deliver needed support more quickly.

Additional investments, either through the same or new programs and partnerships, are expected later this year. To sign up for notifications of these and other NIFA funding opportunities, visit the NIFA website.

USDA expects to continue working with the Department of Labor to support and encourage the development of good jobs in the agricultural sector, including jobs in meat and poultry processing.

USDA also is helping to ensure that entities proposing independent meat and poultry processing projects through the Meat and Poultry Processing Expansion Program have full service technical assistance support from application through post-award. USDA’s Agricultural Marketing Service (AMS) will provide approximately $25 million in American Rescue Plan funding to establish partnerships with organizations that will provide technical assistance to MPPEP applicants, recent recipients and future applicants of the Meat and Poultry Inspection Readiness Grant program and to entities who require general guidance and resources on meat and poultry processing.

Of the $25 million, AMS will utilize $10 million to implement the first phase of support by establishing an initial technical assistance network and lead coordinator. More information about the technical assistance is available at the Meat and Poultry Supply Chain website.

USDA’s one-year supply chain report assesses the opportunities, including today’s significant investment in the meat and poultry sector, that USDA, other federal agencies and Congress have made over the long term to infuse stability, improve equity, diversify and expand infrastructure and markets and transform the food system.

This funding announcement follows the Biden-Harris Administration’s September 2021 announcement about the steps it is taking to address concentration in the meat-processing industry and the January 2022 announcement about an Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain. It also follows USDA’s December 2021 announcement of $100 million for guaranteed loans on top of the previously announced $500 million investment to expand meat and poultry processing capacity. See all recent actions taken to support the American food supply chain on www.usda.gov/meat.

As co-chair of the Biden-Harris Administration’s Supply Chain Disruptions Task Force, Vilsack and USDA have brought together industry, labor and federal partners to address the short-term supply chain disruptions arising from the Administration’s strong economic recovery. This is one of several key steps that USDA is taking to build a more resilient supply chain and better food system and to increase competition in agricultural markets.

To learn more, visit www.usda.gov.

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