Lawmakers, USDA target food supply chain resilience

Efforts to strengthen America’s food supply chain and expand meat processing capacity gained momentum this month as federal lawmakers and the U.S. Department of Agriculture (USDA) unveiled separate initiatives designed to support independent processors, improve market access and enhance local and regional food systems.

Together, the proposals address concerns many producers have raised since the COVID-19 pandemic exposed vulnerabilities within the nation’s highly consolidated food supply chain, and industry leaders believe both could create new opportunities and improve supply chain resilience. 

American Food Supply Chain Resiliency Act

On June 18, Sens. Adam Schiff (D-CA), Amy Klobuchar (D-MN), Cindy Hyde-Smith (R-MS) and Jim Justice (R-WV) introduced the American Food Supply Chain Resiliency Act, which aims to build upon existing USDA investments designed to strengthen regional food systems and create new market opportunities for producers.

According to the corresponding press release, a key provision in the bill would make the USDA’s Resilient Food Systems Infrastructure Program (RFSI) permanent.

This program provides funding to states for projects which improve food supply chain infrastructure and market development and allows states to award grant money for equipment purchases, value-added processing projects and supply chain improvements.

The bill would also establish a Regional Food Systems Hubs Program within USDA which would be tasked with creating at least 10 regional hubs across the U.S. to expand producer assistance.

“Codifying these programs will benefit consumers, producers and rural communities by providing more options, increasing access and creating new and more markets for small and mid-sized producers,” the senators write. 

Small Processors Action Plan

Two weeks prior to the announcement of the American Food Supply Chain Resiliency Act, U.S. Secretary of Agriculture Brooke Rollins announced USDA’s new Small Processors Action Plan on June 3.

According to the department, small and very small meat and poultry processors account for more than 90 percent of federally-inspected establishments nationwide, yet many struggle with regulatory burdens, staffing challenges and limited access to capital needed for expansion.

The Small Processors Action Plan seeks to address these concerns and maintain existing food safety standards.

Under the initiative, USDA aims to improve customer service and responsiveness, create easier ways for small plants to submit and track appeals and requests, establish dedicated customer support to help small businesses navigate processes and get timely responses, expand access to assistance for plants with limited technology and make requirements clearer and easier to navigate.

Additionally, the plan looks to update and expand plain-language guidance provided by USDA’s Food Safety and Inspection Service; improve visibility of available support, escalation paths and points of contact; launch simpler tools to help plants utilize USDA systems; improve consistence through training and guidance and strengthen coordination with the Small Business Administration to ensure small plants are aware of all available resources.

“Today’s announcement marks another step toward rebuilding our domestic beef industry,” Rollins says. “The actions contained in the new Small Processors Action Plan modernize USDA’s approach to the people and small businesses who process locally-grown American beef and protein.”

“We are removing overly burdensome red tape, improving service and giving small plants the clarity and support they need to operate safely, grow and compete,” she adds. “By expanding local processing capabilities, we’re continuing to bolster our domestic producers, which are central to President Donald Trump’s Make America Healthy Again agenda.”

MPPEP funding

In addition to the Small Processors Action Plan, Rollins announced a fourth round of funding through the Meat and Poultry Processing Expansion Program (MPPEP).

With this, the department will make $60 million available to eligible meat and poultry processors who are seeking to expand capacity, improve efficiency and increase competition within the processing sector.

Funding will be split evenly between two categories – one for small and very small processors and another for intermediate-sized facilities.

Eligible applicants include for-profit businesses, nonprofit organizations, producer-owned cooperatives, Tribes and Tribal entities. Facilities must be independently owned, domestically owned and physically located within the U.S. or its territories.

According to USDA, the funding is intended to encourage competition, strengthen supply chain resilience and improve access to processing services for livestock producers.

Industry support

Multiple ag groups welcomed both announcements.

The National Association of State Departments of Agriculture (NASDA), American Farmland Trust (AFT), National Farmers Union and Farm Credit Council voiced support for the American Food Supply Chain Resiliency Act.

“NASDA applauds the introduction of the American Food Supply Chain Resiliency Act and supports its efforts to codify the RFSI and to establish the Resilient Food Systems Hubs Program,” states NASDA Chief Executive Officer Ted McKinney. “These investments will strengthen regional food systems by expanding and diversifying domestic market access for farmers, improving supply chain resilience, supporting farm viability and increasing procurement opportunities for institutions like schools and hospitals.”

AFT President John Piotti comments, “This important legislation will help farmers access new markets, keep working lands in production and create economic opportunities in communities across the country. AFT applauds Schiff, Hyde-Smith, Klobuchar and Justice for this practical, bipartisan approach to strengthening regional food systems and ensuring the long-term viability of American agriculture. When farms thrive, America thrives.”

The announcement of the Small Processors Action Plan and additional MPPEP funding also garnered praise from industry groups.

The U.S. Cattlemen’s Association (USCA) praised USDA’s efforts and emphasized the critical role local and regional processors play within rural communities.

“Providing cattle producers with more local and regional processing options is essential to restoring competition, strengthening the cattle marketplace and delivering affordable, high-quality protein to American families. For years, USCA has advocated for policies to expand local and regional processing capacity and reduce the choke points created by excessive consolidation in the packing sector,” says USCA President Justin Tupper. 

“Small and very small processors are the backbone of rural America,” Tupper continues. “When they have the tools and support they need to succeed, producers gain real market access; consumers gain access to local, reliable food options and our rural communities grow stronger.”

Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.