USDA concludes final round of funding to boost farmer support, lower grocery prices

By Deniz Ataman

- Last updated on GMT

Source: Getty/	pixdeluxe
Source: Getty/ pixdeluxe
The final installment of funding from the Meat and Poultry Processing Expansion Program (MPPEP) is expected to give independent US farmers and ranchers in rural communities a competitive advantage and lower grocery costs, according to USDA.

More than $35 million in grants from MPPEP were awarded to 15 independent meat processors in 12 states to expand processing capacity and foster competition for US farmers, announced USDA Secretary Tom Vilsack last week​. States include: Arkansas, Colorado, Hawaii, Idaho, Indiana, Michigan, Minnesota, Missouri, Montana, Nebraska, New York and Pennsylvania. 

The funding will create “hundreds of new jobs,” support the development of new processing plants, establish stronger business opportunities for local producers and entrepreneurs and provide consumers with more options at grocery stores, according to USDA.  

According to USDA, several of MPPEP’s ongoing projects are increasing processing capacity by more than 800,000 cattle, 14,000 hogs, 23 million chickens and 5 million turkeys annually. MPPEP’s projects are also “serving almost 900 additional meat and poultry producers,” along with the creation of more than 1,200 new jobs. 

The investments are the final installment of MPPEP funding, totaling more than $325 million for 74 independent meat and poultry processing initiatives. The program is funded by President Biden’s 2022 American Rescue Plan. 

Funding for these programs will provide “farmers and ranchers a fair chance to compete in the marketplace, which will increase local food options and lower grocery costs for American families,” according to USDA. 

MPPEP funding to improve transparency for regulated meat and poultry products 

The agency's transparency initiatives within the meat industry are reflected in its finalized ruling last February, which only permits the voluntary “Product of USA” or “Made in the USA” claims to be applied to FSIS-regulated meat and poultry products that are derived from animals born, raised, slaughtered and processed in the US. 

USDA's previous rule​ allowed the label of “Product of USA” on food products made from animals born, raised and slaughtered in foreign countries if these products were processed in the US. 

Additionally, USDA's Food Safety and Inspection Service (FSIS) has assisted small businesses in navigating federal regulations through roundtables. Between 2023 and 2024, 11 roundtables were held to foster communication and support the success of small plant owners and operators. 

The agency also implemented “a suite of critical new rules” to revitalize stipulations set forth in the Packers and Stockyards Act of 1921 to “empower producers and growers,” according to USDA. These include rules that promote transparency and payment disclosures for broiler productions and increased clarity around biased practices, with more rules on the way.  

Related news

Related product

Related suppliers

Follow us

Products

View more

Webinars