The Butcher Block Act won bipartisan support during a US House Ag panel last week (May 18, 2022).
Butcher Block would set up a USDA grant program for the expansion or construction of small, regional and independent meat facilities. It would also establish grants for increasing hiring and capacity at meatpacking and processing plants.
Butcher Block co-author Republican Representative Dusty Johnson of South Dakota reflected the view of both parties when he said US meat production is out of “equilibrium.”
“We are about 6,000 head a day short of production capacity in this country for us to reach that equilibrium. And I think a lot of us feel, frankly, that having 85 percent of the market in control of four large packers is also suboptimal.”
Democrat Abigail Spanberger of Virginia worked with Johnson on the Butcher Block Act to spur new plants outside the ‘big four.’
“It is a critical step toward increasing competition and helps provide upfront capital. I was pleased that USDA recognized the importance of setting up a program like this and chose to use funds from the American Rescue Plan to establish a similar program.”
The bill would ensure the program continues, which is something Representative Glenn ‘GT’ Thompson agrees with.
“We all have seen with the recent markets disruption, including the Holcomb Plant fire, cyberattacks, covid-19 pandemic, and so many other ‘black swan’ events, have highlighted the importance of diversity and access to process capacity.”
In March, USDA made grant funding of $150 million available for increasing packing capacity, with individual grants of up to $25 million. Another $225 million will be available this summer, along with $275 million in lending capital.
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