The U.S. Department of Agriculture is investing $500 million to strengthen the nation’s beef processing capacity through its Strengthening Processing for U.S. Ranchers, or SPUR, program. The funding is aimed at small and midsize meat processors, which USDA defines as facilities processing 2,000 head of cattle or fewer each day. Officials say the goal is to build a more resilient supply chain while preserving processing capacity for cattle producers across the country.
Under Secretary for Farm Production and Conservation Richard Fordyce says several USDA agencies will work together to determine eligibility and distribute the funding.
USDA has not yet notified eligible processors because officials are still compiling processing data and calculating payment amounts. Fordyce says the department will judge the program’s success by whether it helps maintain the processing infrastructure that connects farmers and ranchers with consumers.
Although the nation’s cattle inventory remains historically low, Fordyce says now is the time to protect processing capacity. He says rebuilding the beef herd without maintaining enough processors could create new challenges for producers in the years ahead.
The SPUR program is being administered differently from many traditional USDA assistance programs. Instead of local Farm Service Agency offices handling applications, eligibility will be determined using Food Safety Inspection Service records, with the Farm Service Agency administering the program from its headquarters in Washington. Fordyce says USDA is also working through how information about funding recipients will be made available to the public.
Fordyce says maintaining a healthy processing sector is essential to ensuring cattle producers continue to have reliable marketing opportunities as the industry works toward rebuilding the national herd. USDA says the SPUR program is intended to preserve that critical link in the supply chain while strengthening the nation’s long-term beef processing capacity.
