USDA offers up to $500 million to support small, mid-size beef processors

(KVIA) -- Tuesday, the U.S. Department of Agriculture said it will provide up to $500 million in payments to temporarily support eligible small and mid-size beef processing establishments. It said the Strengthening Processing for U.S. Ranchers (SPUR) Program aims to support stable market opportunities for ranchers in the U.S.

U.S. Secretary of Agriculture Brooke L. Rollins said ranchers and independent and regional beef processors have been dealing with obstacles like tight cattle supplies and the New World screwworm.

As a solution, the USDA said its payments will support eligible beef processors who faced increased costs of acquiring cattle, which comes as the number of cattle being raised in the U.S. lowers.

The SPUR Program also aims to strengthen competition across the American beef supply chain and support rural communities, according to the USDA.

“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 in a statement. “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.”

The Commodity Credit Corporation Charter Act authorized the payments while the Farm Service Agency administered them, according to the USDA.

Eligible entities will get more information about applications based on information on file with the USDA Food Safety and Inspection Service, the USDA said.

Entities may be eligible for SPUR funding based on these conditions, the USDA said:

• Entities must be a beef processing establishment under federal inspection
• Beef processing establishments must be inspected under the Talmadge-Aiken Cooperative Inspection Program and the Cooperative Interstate Shipment Program (CIS)
• Entities must be U.S.-owned and cannot be nationally dominant in beef processing or owned by an entity that is

The USDA said nationally-dominant entities hold a market share greater than or equal to the entity holding the fourth-largest share of the beef processing market.

Four companies control nearly 85% of the country's beef processing industry, including two that are foreign-owned, according to the USDA.

"Ensuring domestic processors can continue operating during this period where the U.S. cattle herd is at a 75-year low is critical to national security and will ensure a strong supply chain once the herd is rebuilt," the USDA said in a news release.