USDA secretary Tom Vilsack says small meat processor grants will add resiliency

Donnelle Eller
Des Moines Register

The U.S. Department of Agriculture announced Wednesday it's sending nearly $22 million to about 110 local and regional lockers and meatpacking facilities in 37 states to enable them to process more livestock and sell their products more widely.

Among them are 13 Iowa facilities that will receive a combined total of $2.6 million to buy equipment, add space and tackle other upgrades that will qualify them to be federally inspected or inspected through a special state program. That will enable them to sell their products across the country.

U.S. Agriculture Secretary Tom Vilsack in an interview with the Des Moines Register said the program is intended to bolster the nation's meat processing and distribution system. The need became apparent two years ago, when the COVID-19 pandemic led to temporary shutdowns at large meatpacking plants across Iowa and the nation.

U.S. Secretary of Agriculture Tom Vilsack speaks at the Farm Progress Show on Tuesday in Boone.

Local meat lockers found themselves slammed with producers looking for places to process their cattle, pigs and other livestock.

"We realized how efficient our food system was, but also that it lacked resilience," said Vilsack, a former Iowa governor. "When facilities shut down or were interrupted, it really created a lot of stress and difficulty for producers.

"At the end of the day, they had no place to market their product," Vilsack said.

In Iowa, some pig producers euthanized animals they were unable to process. Others donated pigs to programs tied to local processors that slaughtered the animals and gave the pork to food banks.

"What we at USDA are attempting to do is create greater resiliency in our food system, and greater opportunities for farmers to have more new and better markets," said Vilsack.

MORE: Ex-union leader acknowledges defending company as COVID-19 ravaged Iowa meatpacking plant workforce

In January, President Joe Biden announced $1 billion in federal spending to increase competition in the meatpacking industry, now dominated by four large meatpackers: Cargill Inc., Tyson Foods, JBS USA and National Beef Packing Co. 

U.S. Secretary of Agriculture Tom Vilsack speaks during a roundtable at the Spellman farm Aug. 18 in Woodward.

Vilsack said he expects the agriculture department will announce $150 million in grants to regional independent meatpackers in October, with a second $225 million round also to be awarded this fall.

The programs are designed to help expand existing plants start new ones. Among the Iowa companies seeking assistance: Cattlemen's Heritage Beef Co., a $450 million processing startup in western Iowa, and West Liberty Foods, a turkey processing cooperative in West Liberty that's owned by poultry producers.

More:Tyson, a leading producer of Iowa pork, sees sales slump amid increased costs, lower demand

Vilsack told farmers attending the Farm Progress Show near Boone on Tuesday that he expects a historic level of investment in rural America, with federal spending to improve roads, bridges and locks and dams, investments in rural high-speed internet, and spending to encourage farmers to adopt conservation practices that cut greenhouse gas emissions that contribute to climate change.

In his interview with the Register, he also pointed to new programs that help farmers transition to organic production and aid gas stations in adding pumps and other infrastructure to support higher ethanol and other biofuel blends. Iowa is the nation's largest producer of ethanol, an industry that uses half the state's annual corn crop.

MORE: Iowa ag initiative that pays farmers for conservation practices wins USDA climate-smart grant

The USDA announced its first round of grants to lockers and small meat processors in November, providing nearly $33 million to 167 U.S. facilities. Eighteen Iowa businesses received $3.6 million.

Those in Iowa receiving $200,000 grants Wednesday were:

  • Country Meats Inc. in Arcadia.
  • Bordenaro's Meat Market, Carroll.
  • Weaver Meats, Afton.
  • Edgewood Locker Inc., Edgewood.
  • Double A Enterprises, Long Grove.
  • Red Barn Meat Market, Lamoni.
  • West River Meats, Rutland.
  • Zanker Meats, Stanhope.
  • Bailey Beef Processing, Anita.
  • Food Locker Service Inc., Holstein.
  • Leighton Processed Meats, Leighton.
  • West Liberty Locker & Process/Suzette Vance, West Liberty.
  • Gilbertville Locker, Gilbertville.

Country Meats, Bordenaros Meat Market, Edgewood Locker and Weaver Meats also received grants in November.

The Iowa Legislature also has helped local lockers add processing capacity with initiatives that included appropriating $750,000 in 2021 for a fund to provide grants for small-scale meat processing businesses.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457.