A group of nine members of Congress has raised concerns about USDA’s oversight and distribution of $45.6 million in loans and grants to Pure Prairie Poultry, a Minnesota-based processor that recently filed for Chapter 11 bankruptcy. In a letter to Agriculture Secretary Tom Vilsack, the Republican lawmakers highlight the impact of Pure Prairie’s shutdown, which left about 50 farmers and over 2 million chickens in Minnesota, Iowa and Wisconsin without processing options.

Pure Prairie Poultry received a $38.7 million guaranteed loan from USDA’s Food Supply Chain Guaranteed Loan Program and an additional $6.9 million grant from the agency’s Meat and Poultry Processing Expansion Program in 2022. The bankruptcy has led to significant financial and operational challenges for farmers, including the culling of 1.3 million chickens due to lack of care.

The letter, led by Congressman Brad Finstad (R-Iowa) and Senator Chuck Grassley (R-Iowa), requests information on USDA’s oversight measures, criteria used to approve the funding, and whether USDA was aware of Pure Prairie’s prior financial struggles. Lawmakers are seeking responses to ten specific questions by Nov. 8, along with clarification on how USDA plans to prevent similar situations from occurring. 

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EU rejects Hungary’s proposed ban on fake meat

The European Commission recently deemed Hungary's proposed ban on cultivated meat “unjustified” and potentially disruptive to the EU single market, according to documents released by the commission. While no cultured meat products are currently approved for sale in the EU, the commission emphasized that a preemptive ban could undermine the EU-wide approval process for novel foods, which requires a scientific evaluation by the European Food Safety Authority.

The Hungarian proposal, submitted for review in July, has faced opposition from Sweden, Lithuania, the Netherlands and the Czech Republic. These countries argue that a ban would be premature given that the novel foods process has yet to conclude and could hinder the free movement of goods if cultured meat gains approval.

The Netherlands further supported opposition to the ban by highlighting the potential benefits of cultivated meat for traditional farmers. “Production of laboratory-grown meat can also provide an additional business case for farmers,” noted the Dutch response, adding that such innovation could help sustain conventional agriculture by offering new income streams and supporting sustainable practices.

Hungary introduced its intentions to restrict cultivated meat in early 2024 and still has the option to adjust its draft ban in response to the Commission's findings.

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New institution launched to support farmers’ access to capital

The USDA has announced the creation of the Southern Farmers Financial Association, a new institution aimed at expanding capital access for farmers in the Southeastern U.S., particularly those from underserved communities. Backed by $20 million from the Inflation Reduction Act, SFFA will offer low-interest loans and technical assistance to support new and existing small-scale farming operations across 12 states in the region.

The association, led by interim executives Cornelius Blanding, Shirley Sherrod and Calvin King, will address longstanding financial challenges for small farmers who may lack traditional capital or USDA resources to sustain their operations. Acting as a cooperative, the SFFA will enable farmers to access the resources needed to maintain their businesses amid economic and environmental pressures.

House Agriculture Committee Ranking Member David Scott (D-Ga.) praised the launch. Scott said, “The new SFFA will empower producers so that they can continue to benefit their communities, grow their businesses, and succeed in agriculture for generations to come.” Scott emphasized that expanded financial services for underserved farmers reflect the intent behind the Inflation Reduction Act, which allocated funds to create initiatives like the SFFA.

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In addition to loan access, SFFA will work with partners to gain certifications and leverage additional capital sources, positioning it as a critical resource for farmers aiming to overcome capital barriers and secure their agricultural futures.