USDA invests to strengthen American farms, cusinesses, increase competition, lower costs

Press release

MANITOWOC, Wis. During a visit to Dramm Corp. today, U.S. Department of Agriculture Deputy Secretary Xochitl Torres Small announced Oct. 30 that the Biden-Harris administration is making investments that will strengthen American farms and businesses by expanding innovative domestic fertilizer production and increasing independent meat and poultry processing capacity, which will in turn increase competition and lower fertilizer costs for farmers and food costs for consumers.

The Department is awarding over $120 million today to fund six fertilizer production projects in Arkansas, California, Illinois, South Dakota, Washington and Wisconsin through the Fertilizer Production Expansion Program (FPEP), which is funded by the Commodity Credit Corporation and provides funding to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more.

In addition, USDA announced Oct. 30 $20.2 million in awards to 26 projects through the Local Meat Capacity (Local MCap) grant program to expand processing capacity within the meat and poultry industry, which adds new jobs to their local communities and provides producers more options to ensure their products get to market.

The investments advance President Joe Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up and to promote fair and competitive markets for American farmers and ranchers.

“When we invest in domestic supply chains, we drive down input costs and increase options for farmers,” Deputy Secretary Torres Small said. “Through today’s investments to make more fertilizer and process meat locally, the Biden-Harris Administration is bringing jobs back to the United States, lowering costs for families, and supporting farmer income.”

Local Meat Capacity Grants

USDA also announced Oct. 30 $20.2 million in awards to 26 projects through the Local Meat Capacity (Local MCap) grant program to expand processing capacity within the meat and poultry industry. This final set of awards through Local MCap is for both Simplified Equipment Only and Processing Expansion project types. Two additional projects (totaling $7.8 million), which have been selected to move forward, are in final review with USDA.

This final set of awards for simplified equipment and processing expansion covers projects in 21 states. Simplified Equipment Only awards fund projects to purchase processing equipment such as meat grinders, stuffers and smokers. Processing Expansion projects increase processing or rendering capacity through activities including facility upgrades, equipment purchases and training.

Examples of funded projects include Montana Premium Processing Cooperative in Hill County, Montana. It provides provides slaughter facilities, including ccritical tribal slaughter support ,and regional employment opportunities. Using Local MCap funding, the cooperative will boost production capacity by 225% and invest in new equipment including hoists, vacuum sealers, a bandsaw and steel containers which will enhance both production efficiency and quality control.

The Local MCap grant program supports meat and poultry processors with smaller-scale projects, with a goal to increase processing availability and choice for local and regional livestock producers. A first round of funding was announced in March 2024, and a second round of funding was announced in July 2024. With today’s announcement, USDA has funded a total of 97 projects for $55.8 million through Local MCap. The program is administered by the Agricultural Marketing Service (AMS) and is authorized by the American Rescue Plan.

For more information, on Local MCap and to view a complete list of the awarded projects visit the AMS Local MCap webpage at https://www.ams.usda.gov/services/grants/localmcap .

Fertilizer Production Expansion Program Grants

As part of the announcement, Torres Small visited Dramm Corp,, a previous FPEP recipient. Dramm Corp. is using a $776,000 grant to increase its production capacity and expand its network of customers and farmers while reducing their carbon footprint and increasing employee safety. Using fish offal collected from commercial and sport fishermen, Dramm produces a liquid fish fertilizer suitable for organic and traditional farming while keeping millions of pounds of waste out of landfills and fresh waterways.

In total, USDA was awarding more than $120 million Oct. 30 to fund six fertilizer production projects in Arkansas, California, Illinois, South Dakota, Washington and Wisconsin.

To date, USDA has invested over $368 million in 67 projects through FPEP, creating new jobs and increasing domestic fertilizer production across the country.

Biden and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors such as war in Ukraine and a lack of competition in the fertilizer industry.

The administration committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses and support climate-smart innovation.