WASHINGTON, D.C. (RFD News) — The U.S. Department of Agriculture (USDA) is offering temporary support for small- and mid-size beef processors as tight cattle supplies are pressuring processing margins and ranchers’ market options.
Agriculture Secretary Brooke Rollins announced the Strengthening Processing for U.S. Ranchers program (SPUR). USDA says the program will provide up to $500 million in payments to eligible beef processing establishments.
The Farm Service Agency will administer the payments through the Commodity Credit Corporation. USDA says the support is intended for processors facing higher cattle acquisition costs because of historically low cattle numbers and other market pressures.
Eligible processors must be federally inspected or operate under the Talmadge-Aiken Cooperative Inspection Program or Cooperative Interstate Shipment Program. They must be U.S.-owned and cannot be nationally dominant in beef processing.
USDA says four companies control nearly 85 percent of the U.S. beef processing market. The agency says maintaining regional processing capacity can preserve rancher access to markets, support branded beef programs, and strengthen rural supply chains.
