In a move to shore up a thinning middle market for American cattle, Agriculture Secretary Brooke Rollins announced the Strengthening Processing for U.S. Ranchers (SPUR) Program Tuesday, June 30. The initiative will deploy up to $500 million in payments to eligible beef processing plants, aiming to protect the independent infrastructure ranchers rely on as the national cattle herd continues to hover at historic lows.
“America’s ranchers deserve a competitive marketplace that rewards their hard work,” Rollins says, noting tight cattle supplies, foreign ownership of major packers and the reemergence of the New World screwworm have created a “perfect storm” of market pressure.
The Bottom Line for Producers
The program specifically targets the independent and regional plants. By providing financial stability to these mid-sized entities, the USDA hopes to ensure that as the herd eventually enters a rebuilding phase, the processing capacity is still there to handle the volume.
“Beef packers from the very large to the very small, are losing millions of dollars a week due to the tight cattle supply while the industry struggles with the smallest US cattle herd in 75 years. Packers of all sizes are reducing shifts and some have been forced to close facilities. We simply need more cattle,” says Meat Institute President and CEO Julie Anna Potts. “The program USDA announced today will help some of the Meat Institute’s members, but it will not increase the cattle supply. Government policies intended to reduce the rising cost of beef for consumers should give cattle producers the certainty they need to retain heifers and grow the herd.”
The USDA release says the program also directly supports the department’s Plan to Fortify the American Beef Industry and the Small Processors Action Plan by ensuring American ranchers have access to regional processing capacity they rely on to support branded and value-added beef programs, such as the Product of USA label that USDA started promoting earlier this year. Maintaining regional processing capacity is also a key part of the Make America Healthy Again movement by ensuring access to high-quality protein in alignment with the new Dietary Guidelines for Americans.
Who Qualifies?
To be eligible for SPUR funding, processing establishments must meet the following criteria:
- Inspection Status: Must be under federal inspection or participating in the Talmadge-Aiken or Cooperative Interstate Shipment (CIS) programs.
- Ownership: Must be U.S.-owned.
- Market Share: Must not be “nationally dominant.” The USDA defines this as any entity with a market share smaller than the current fourth-largest beef processor.
How to Apply
The Farm Service Agency (FSA) will administer the payments. Rather than a general open call, the USDA is using existing data from the Food Safety and Inspection Service (FSIS) to contact eligible entities directly. According to the press release, if a facility is on file with FSIS and meets the criteria, it can expect outreach regarding the application process shortly.
