On July 20, U.S. Secretary of Agriculture Brooke Rollins announced the Strengthening Processing for U.S. Ranchers (SPUR) Program, designed to provide temporary support for beef processing establishments. Under SPUR, the U.S. Department of Agriculture (USDA) will provide up to $500 million in payments to eligible entities that aim to support stronger, more stable market opportunities for American ranchers.
“Small and mid-size beef processors are essential to maintain the diversity of America’s food system,” said Under Secretary for Food Safety Mindy Brashears. “Supporting this processing capacity helps preserve market options for our United States ranchers, strengthens regional supply chains and ensures American families continue to have access to safe, high-quality beef produced here at home.”
Today, just four companies control nearly 85% of the beef processing market, including two internationally owned companies, said USDA. The U.S. cattle herd is at a 75-year low.
SPUR payments, authorized under the Commodity Credit Corporation Charter Act and administered by the Farm Service Agency, are intended to provide financial support to eligible beef processors who have faced increased costs of acquiring cattle for processing due what USDA described as an “abnormally low number of cattle being raised in the U.S.,” as well as other conditions currently impacting the cattle market.
Information, including applications, will be provided to eligible entities using contact information that is currently on file with the USDA Food Safety and Inspection Service (FSIS), the agency said.
Entities eligible for funding must be U.S.-owned beef processing establishments under federal inspection, including establishments inspected through the Talmadge-Aiken Cooperative Inspection Program or the Cooperative Interstate Shipment Program. Eligible entities cannot be nationally dominant in beef processing or owned by an entity that is, said USDA. The agency defines nationally dominant as an entity holding a market share greater than or equal to the entity holding the fourth-largest share of the beef processing market.
“America’s ranchers deserve a strong, competitive marketplace that rewards their hard work and preserves opportunity for generations to come,” said Rollins. “Today, historically tight cattle supplies, the Biden administration’s anti-cattle focus, consolidation in and foreign ownership of meat packing and the reemergence of New World screwworm have created extraordinary market conditions that are placing significant pressure on our independent and regional beef processors. Through the Strengthening Processing for U.S. Ranchers (SPUR) Program, USDA is taking targeted action to preserve the independent processing capacity that ranchers rely on, strengthen competition across the American beef supply chain and support rural communities across the country. This is another important step in our plan to fortify the American beef industry by strengthening domestically owned processing capacity and ensuring America’s cattle producers continue to have strong market opportunities and meet America’s historically high beef demand. As we make America healthy again, we are working to ensure American families have continued access to nutritious, high-quality American beef while promoting greater competition, a more resilient food supply chain, and long-term affordability at the grocery store.”