What is the Small Processors Action Plan?

USDA launched the Small Processors Action Plan, a set of reforms to reduce regulatory burdens, improve customer service and support small and very small federally inspected meat and poultry processing plants — while maintaining existing food safety standards.

USDA is also accepting applications for $60 million in new funding through the fourth round of the Meat and Poultry Processing Expansion Program (MPPEP).

The plan announced by Secretary of Agriculture Brooke L. Rollins targets small and very small meat and poultry processing plants, which make up the majority of federally inspected establishments in the U.S.

“The actions contained in the new Small Processors Action Plan modernize USDA’s approach to the people and small businesses who process American locally grown beef and protein,” Rollins explains. “We are removing overly burdensome red tape, improving service and giving small plants the clarity and support these business need to operate safely, grow and compete. By expanding local processing capabilities, we’re continuing to bolster our domestic producers, which are central to the President’s Make America Healthy Again agenda.”

The plan focuses on three areas:

1. Improved Customer Service

• Clearer ways to submit and track appeals and requests
• Dedicated support for small businesses navigating agency processes
• Expanded assistance for plants with limited technology or connectivity

2. Clearer Requirements

• Plain-language guidance from FSIS tailored to small and very small plants
• Better visibility into available support, escalation paths and contacts
• Simpler tools for engaging with USDA systems

3. Reduced Regulatory Burden

• Streamlined processes for FSIS inspection staffing concerns and appeals
• Improved consistency across field offices through targeted training
• Stronger coordination with the Small Business Administration (SBA)

Who Qualifies for MPPEP Funding?

The $60 million MPPEP Round 4 funding is split equally between two competitions:

• Small and Very Small Processors
• Intermediate Processors

Eligible applicants include:

• For-profit and nonprofit organizations
• Producer-owned cooperatives
• Tribes and tribal entities

Key requirements:

• Must be independently owned, operated and domestically owned
• Processing facility must be physically located in the U.S. or its territories
• Facility must primarily process cattle to qualify (though funds may also support poultry processing)

Applications must be submitted through Grants.gov.

Why Is This Happening?

USDA states these actions build on its broader Plan to Fortify the American Beef Industry, aimed at expanding domestic processing capacity, increasing competition and strengthening supply chain resilience.

Meat Institute Applauds USDA for Reducing Regulatory Burden

“We appreciate the Food Safety and Inspection Service’s (FSIS) work to streamline and improve its communication and operations within small processing facilities,” says Meat Institute President and CEO Julie Anna Potts. “Small and very small processors provide jobs and invest in rural communities. They face unique challenges, with employees taking on many roles within a facility. These improvements should create real opportunities for growth and will improve daily operations.”

The Meat Institute says the plan will be especially beneficial to small beef processors who have been losing money due to the record-high cost of cattle and other economic factors.

“The Meat Institute will continue to work with FSIS as it implements these changes to ensure they are effective and beneficial to our small and very small members,” Potts explains.