USDA has announced over $35 million in grants to 15 independent meat processors across 12 states as part of its final investment in the Meat and Poultry Processing Expansion Program. This initiative, funded by the American Rescue Plan Act and launched in 2022, aims to increase processing capacity, create jobs in rural areas and expand market opportunities for U.S. farmers. The program is part of the Biden administration’s broader plan to promote what it considers a fairer and more competitive meat supply chain.

“For the past four years, the Biden-Harris Administration has advanced a sustainable vision of agriculture that prioritizes the needs of the hardworking producers and small business owners who keep rural communities strong,” Agriculture Secretary Tom Vilsack said. “Through investments like these, USDA is working to give farmers and ranchers a fair chance to compete in the marketplace, which will increase local food options and lower grocery costs for American families.”

Since its inception, MPPEP has provided 74 awards totaling over $325 million, which has increased the capacity of facilities to process over 800,000 cattle, 14,000 hogs, 23 million chickens, and 5 million turkeys annually. The program has also created more than 1,200 jobs and supported nearly 900 additional meat and poultry producers. 

Since the start of the Biden administration, USDA has spent over $1.4 billion to support small and medium-sized processing facilities. As part of its efforts to increase competition, it has also introduced new rules aimed at promoting transparency and fairness in agricultural markets. Additionally, the USDA’s Food Safety and Inspection Service has updated labeling standards with the intent of ensuring products align with consumer expectations.

Endangered Species Act reform bill

Last week, Congressional Western Caucus Chairman Dan Newhouse (R-Wash.) and House Natural Resources Committee Chairman Bruce Westerman (R-Ark.) introduced the Endangered Species Act Amendments Act. The bill is designed to modernize the ESA by enhancing species recovery while also addressing concerns from rural communities about overreach by environmental activists.

The ESA Amendments Act seeks to empower states to develop their own species recovery strategies. The sponsors argue that local officials are better equipped than the federal government to manage species populations without harming local economies. The legislation also focuses on transparency, requiring that all data used for listing decisions be publicly accessible and reviewed. It would prevent private land from being designated as critical habitat and incentivize conservation efforts on private property. Additionally, the bill would limit judicial review of species delisting decisions to streamline the process.

Critics of the current ESA framework say it has been exploited by environmental groups and attorneys for financial gain through lawsuits, which they claim stall economic development. The reform bill would cap attorney fees and increase transparency in government spending related to ESA litigation. Proponents of the bill argue that these reforms will benefit both species recovery and rural economic growth. 

The ESA Amendments Act has garnered support from a range of organizations, including the American Farm Bureau Federation and the National Cattleman’s Beef Association. These groups emphasize the need for state-led recovery plans and greater flexibility in managing endangered species while protecting landowner rights. 

Mexico’s meat consumption expected to rise significantly by 2033

A new study by USDA’s Economic Research Service projects that meat consumption in Mexico will increase over the next decade, reaching 82.5 kilograms per capita by 2033. This projection includes poultry, pork and beef. If the growth materializes as predicted, Mexican meat consumption will amount to about two-thirds of projected U.S. levels. Poultry consumption is expected to see the highest growth, rising from 38.3 kilograms per person last year to 43.8 kilograms in 2033. Pork and beef consumption are also projected to increase, albeit more modestly.

This growth in meat consumption continues a trend that began with the implementation of the North American Free Trade Agreement in 1994, which created a more integrated market for agricultural goods between the U.S., Mexico and Canada. NAFTA’s trade liberalization led to a surge in Mexico’s imports of meat and feedstuffs from the U.S. and Canada. Since NAFTA’s implementation, Mexico’s corn, soybean and soybean meal imports have also risen substantially, driving significant growth in its domestic poultry, pork and beef production.

Mexico’s meat production has experienced major increases over the past three decades, with chicken production growing by 183%, pork by 80% and beef by 26%. These trends are expected to continue under the United States-Mexico-Canada Agreement, which replaced NAFTA in 2020 and maintains similar provisions for agricultural trade. The ERS report projects further increases in Mexico’s chicken and pork imports, although beef imports are expected to decrease slightly. Overall, Mexico’s meat production is expected to grow by 22% for chicken, 24% for pork and 25% for beef between 2023 and 2033.