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Iowa meat processors think they'll be able to capitalize on federal grants

President Joe Biden and Ag Secretary Tom Vilsack met with farmers and ranchers at the White House this week to announce a meat and poultry supply chain action plan.

President Joe Biden and Ag Secretary Tom Vilsack met with farmers and ranchers at the White House this week to announce a meat and poultry supply chain action plan. Michelle Rook has more on AgweekTV.

THE PLAN INCLUDES FOUR STRATEGIES TO HELP CREATE A MORE COMPETITIVE, RESILIENT MARKET. THE ADMINISTRATION WILL USE 1-BILLION DOLLARS OF AMERICAN RESCUE PLAN FUNDS TO EXPAND INDEPENDENT MEAT PROCESSING. HOW FAR THOSE DOLLARS WILL GO AND DETAILS ON ELIGIBILITY, THOUGH, ARE STILL A QUESTION MARK.

Craig Andersen: We don't know whether that means going down to the local meat locker or what size that actually entails but like I say. Anytime that we can increase capacity its going to be a favorable thing for producers.

THE ORGANIZERS OF A NEW 1500 HEAD A DAY BEEF PROCESSING PLANT IN IOWA SAY THE PLAN WILL HELP THEIR PROJECT.

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Chad Tentinger: I think we will obviously qualify for some of this funding they're talking about that the barrier to entry to a plant like this is capital and anytime that the government is behind you and the people are behind you to help with that capital is a very good thing.

THE PLAN ALSO IMPROVES MARKET COMPETITION AND TRANSPARENCY IN THE MEAT AND POULTRY SECTOR, THROUGH STRICTER ENFORCEMENT OF EXISTING COMPETITION LAWS, AND BY ISSUING STRONGER RULES UNDER THE PACKERS AND STOCKYARDS ACT, PLUS NEW PRODUCT OF USA LABELING RULES.

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