Nebraska's small and medium-sized meat processors may be improving and/or expanding their businesses thanks to a new lower-interest loan program designed specifically for them.
The Center for Rural Affairs has added a Meat and Poultry Processing Loan program to its current loan offerings.
The program is made possible with the U.S. Department of Agriculture Rural Development Meat and Poultry Intermediary Lending Program grant.
Independent meat processors now have access to $15 million in loan capital through the program's loan fund.
Meg Jackson - a local foods associate with the Center - said it's an "exciting time" for the local meat industry, since the USDA announced its initiative to help smaller, independent processors.
She said the fact that the four largest meat packers have come to dominate nearly 85 percent of the industry has had an impact at every level.
"The consolidation of the meat industry has totally disrupted the pricing, choice and supply chain," said Jackson. "It's impacted negatively the pricing for farmers and what they're able to get for their livestock, and the price at the meat counter for consumers.
Jackson said the Center's Meat and Poultry Processing Loans are designed to help both existing USDA-inspected processors and startups planning to become USDA-inspected.
She said the Center is aware that some small-town lockers have struggled to stay competitive against the larger processors while also dealing with aging equipment, owners reaching retirement age and a changing workforce.
For those who've faced lack of access to capital, the Center's new loan program may be the resource they need.
The Center is accepting applications now, and Jackson explained that the funding can be used for a wide variety of purposes.
"These loans can be used for expansion of existing processors," said Jackson, "start-up of new processors, real estate and equipment, facilities updates, and working capital."
She described the ideal applicants as the rural meat lockers who are serving their regional farmers, grocery stores, and consumers.
The general manager of McClean Beef in York, Brian Kurth, said a loan program like this is really needed. He said when they're busy, they're "lined up and backed up," fueled in part by changing concerns of consumers.
"It's needed because we're trying to expand and meet the market," said Kurth. "Consumers are wanting to know where their food comes from, and that is why this has picked up so much."
Kurth said most of the beef they process comes from within an hour or so of York, but they've gotten it from as far away as Wyoming and Minnesota.
He said there's more than one reason this loan program appeals to them.
"It's an opportunity for us to get lower interest rates, for one," said Kurth. "It's a breath of fresh air to talk to their staff that understand ag and understand our complexities and differences."
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From declining commodity prices to unpredictable weather, American farmers are at a crossroads - especially smaller operations.
And they're wondering what things will be like after President-elect Donald Trump takes office.
As it did in Trump's first term, the incoming administration is poised to revive trade disputes by implementing tariffs.
Analysts say the first go-round had a negative effect on farmers, with agricultural exports suffering $27 billion in losses.
Emergency aid was approved, but observers say larger agri-businesses were prioritized too much.
Ben Lilliston - the director of rural strategies and climate change at the Minnesota-based Institute for Agriculture and Trade Policy - said he wonders if similar patterns will emerge.
"That definitely is a concern because we've seen consolidation in farmland," said Lilliston. "We're losing farmers - particularly losing small, mid-sized farmers - and this would be just another advantage for the largest operators."
Those larger sites, namely concentrated animal feeding operations or CAFOs, are growing in number, creating environmental impacts.
That's on top of talk from Trump and his aides about mass deportations of undocumented individuals, potentially disrupting the farm labor force.
However, Lilliston said Trump has raised legitimate questions about the need for trade reforms.
The Biden administration has been aggressive in addressing market fairness for farmers and improving their climate outlook, but also has been criticized for certain moves.
One is funding bio-digesters, which opponents say helps expand CAFOs.
Lilliston said they're unsure what Trump will do on that front, but conservation funding through the Inflation Reduction Act could take a hit.
"It's given a huge boost and made more money available, close to $20 billion," said Lilliston. "So, the question is, as the Trump administration comes in, how are they going to use that Inflation Reduction Act money?"
He pointed to rumblings that the incoming administration wants to roll back unspent IRA funds. But it could be a thorny issue with Republican lawmakers who tout these investments for their districts.
Those conservation dollars are viewed as ways for smaller farms to make their land more resilient and competitive in the face of climate change.
Lilliston said there are other uncertainties, such as the person chosen for Ag Secretary. She has little policy background, leaving farmers guessing.
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Rural communities across Massachusetts are benefiting from state grants aimed at strengthening the local food supply and building climate resilience.
State officials have awarded nearly $4 million to help farmers improve soil health, upgrade irrigation systems and prepare for extreme weather events, including the current critical drought conditions.
Ashley Randle, commissioner of the Massachusetts Department of Agricultural Resources, said farms are helping the state meet its ambitious climate goals.
"They're a mitigation and resilience strategy so that farms can be best positioned to withstand the changing weather conditions that they are facing," Randle explained.
Randle pointed out grants will help farms improve efficiency and environmental controls and reduce greenhouse gases. Massachusetts has set a goal of reaching net-zero emissions by 2050.
From cranberries to oysters, the majority of farms in Massachusetts are smaller, family-owned operations. Randle noted grants will help farmers purchase high tunnels and other equipment needed to extend their production season. She emphasized it helps secure jobs and provides income to local economies during the winter months.
"All of these grants are really helping to ensure that we have a stable food supply," Randle stressed. "And to continue to grow and adapt should there be climate change impacts like we saw last year that devastated the sector."
Last year, a deep freeze in February spoiled the peach crop while a late frost in May damaged most tree fruits. Significant flooding last summer severely damaged 13,000 acres, resulting in more than $65 million in losses. Randle added farms often face unpredictable factors but grant programs can help them adapt and thrive in the face of uncertainty.
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A Missouri-based farm group is fighting to keep the proposed "FARM Act" from becoming law, warning it would benefit large corporate farms at the expense of smaller ones.
The Farm Action Fund, a nonpartisan advocacy group, contended the proposed legislation in Congress, which is an extension of the five-year Farm Bill, would funnel more money to big corporate farms, giving them an unfair advantage and making it harder for small and mid-sized farms to survive.
Joe Maxwell, president of the Farm Action Fund, believes the legislation is making history but not in a good way.
"As far as I know, and I've been doing this for about 40 years, it's the first time there's been policy that would discriminate among the commodity crop growers in the United States, saying that the largest ones get more money," Maxwell explained. "Oftentimes, they're the ones that need the least money."
The National Farm Coalition reported 20% of farms control nearly 70% of U.S. farmland, which it said shows significant consolidation. If passed, The FARM Act would allocate around $21 billion in aid.
Nearly 90% of Missouri farms are smaller, family-owned operations. According to the U.S. Department of Agriculture, small farms are the backbone of U.S. agriculture. They make up 88% of all farms, controlling nearly half of the nation's farmland. Maxwell pointed out his organization is urging them to take a stand on the FARM Act, because the competition is formidable.
"I think it's the power of the dollar expressing itself in the halls of our United States Capitol," Maxwell contended. "The largest farmers have brought in the lobbyists and the trade organizations, to give them an upper hand."
Rep. Mark Alford, R-Mo., and Rep. Sam Graves, R-Mo., are cosponsors of the FARM Act.
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