USDA launches SPUR Program with up to $500 million for beef processors
The U.S. Department of Agriculture announced the Strengthening Processing for U.S. Ranchers Program, which will provide up to $500 million in temporary payments to eligible beef processing establishments, to help maintain processing capacity during a period of historically low cattle supplies.
Secretary of Agriculture Brooke Rollins said the SPUR Program is intended to support independent and regional beef processors facing higher costs to acquire cattle for processing. USDA said the payments are designed to help preserve market opportunities for cattle producers and maintain competition within the beef supply chain.
The payments are authorized through the Commodity Credit Corporation Charter Act and will be administered by the Farm Service Agency.
“America’s ranchers deserve a strong, competitive marketplace that rewards their hard work and preserves opportunity for generations to come,” Rollins said.
USDA said eligible businesses include federally inspected beef processing establishments, as well as facilities operating under the Talmadge-Aiken Cooperative Inspection Program and the Cooperative Interstate Shipment Program.
To qualify, processors must be United States-owned and cannot be a nationally dominant processor defined as one with a market share greater than or equal to the company holding the fourth-largest share of the U.S. beef processing market.
According to USDA, the four largest beef processing companies control nearly 85% of the nation’s beef processing market, including two companies under foreign ownership. The department said maintaining regional processing capacity is especially important as the U.S. cattle herd has declined to its lowest level in 75 years.
USDA Undersecretary for Food Safety Mindy Brashears said smaller processing facilities play an important role in maintaining market diversity.
“Small- and mid-size beef processors are essential to maintain the diversity of America’s food system,” Brashears said. “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.”
USDA Undersecretary for Farm Production and Conservation Richard Fordyce said the program is also intended to improve market access for cattle producers.
“Competitive supply chains help ensure American ranchers have reliable markets for their cattle,” Fordyce said. “Through the SPUR Program, USDA is bolstering market opportunities for ranchers and supporting a resilient beef industry.”
USDA said additional information, including application materials, will be provided directly to eligible entities using contact information on file with the USDA Food Safety and Inspection Service.
The department said SPUR also supports its Plan to Fortify the American Beef Industry and the USDA Small Processors Action Plan by helping preserve regional processing capacity for branded and value-added beef programs, including products marketed under the Product of USA label.
Lacey Vilhauer can be reached at 620-227-1871 or [email protected].
