USDA Announces SPUR Program for Beef Processors

U.S. Secretary of Agriculture Brooke L. Rollins has announced the Strengthening Processing for U.S. Ranchers (SPUR) Program, a new initiative that will provide up to $500 million in payments to eligible beef processing establishments.

According to the United States Department of Agriculture (USDA), the program is intended to support stronger and more stable market opportunities for American ranchers by helping eligible processors manage higher cattle acquisition costs during a period of historically low U.S. cattle inventories.

What Farmers and Ranchers Need to Know

The SPUR Program will provide temporary financial assistance to eligible U.S.-owned beef processing establishments. USDA said the payments are designed to help processors continue operating during current market conditions, preserving regional processing capacity that many cattle producers rely on.

The program is administered by the Farm Service Agency (FSA) under the authority of the Commodity Credit Corporation Charter Act.

Eligible establishments include federally inspected beef processors, processors operating under the Talmadge-Aiken Cooperative Inspection Program and those participating in the Cooperative Interstate Shipment (CIS) Program.

To qualify, processors must be U.S.-owned and cannot be nationally dominant in beef processing or owned by a nationally dominant company. For SPUR, USDA defines nationally dominant as a company with a market share greater than or equal to that of the fourth-largest beef processor.

Additional program details and application materials will be provided directly to eligible entities using contact information already on file with USDA's Food Safety and Inspection Service.

Why USDA Says the Program Is Needed

USDA said the U.S. cattle herd is currently at a 75-year low, increasing cattle acquisition costs for processors. The department also noted that four companies control nearly 85% of the U.S. beef processing market, including two foreign-owned companies.

According to the USDA, maintaining independent and regional processing capacity is intended to help preserve market options for ranchers while supporting the long-term stability of the beef supply chain.

"America's ranchers deserve a strong, competitive marketplace that rewards their hard work and preserves opportunity for generations to come," said Secretary Brooke L. Rollins. "Today, historically tight cattle supplies, the Biden administration's anti-cattle focus, consolidation in and foreign ownership of meat packing and the reemergence of New World Screwworm have created extraordinary market conditions that are placing significant pressure on our independent and regional beef processors. Through the Strengthening Processing for U.S. Ranchers (SPUR) Program, USDA is taking targeted action to preserve the independent processing capacity that ranchers rely on, strengthen competition across the American beef supply chain and support rural communities across the country. This is another important step in our Plan to Fortify the American Beef Industry by strengthening domestically owned processing capacity and ensuring America's cattle producers continue to have strong market opportunities and meet America's historically high beef demand. As we Make America Healthy Again, we are working to ensure American families have continued access to nutritious, high-quality American beef while promoting greater competition, a more resilient food supply chain and long-term affordability at the grocery store."

"Small and mid-size beef processors are essential to maintain the diversity of America's food system," said Under Secretary for Food Safety Mindy Brashears. "Supporting this processing capacity helps preserve market options for our United States ranchers, strengthens regional supply chains and ensures American families continue to have access to safe, high-quality beef produced here at home."

"Competitive supply chains help ensure American ranchers have reliable markets for their cattle," said Under Secretary for Farm Production and Conservation Richard Fordyce. "Through the SPUR Program, USDA is bolstering market opportunities for ranchers and supporting a resilient beef industry."

USDA said the SPUR Program also supports its broader Plan to Fortify the American Beef Industry and the USDA Small Processors Action Plan by helping maintain regional processing capacity that supports branded and value-added beef programs, including products marketed under the Product of USA label. According to the department, maintaining processing capacity is also intended to support access to domestically produced beef as the U.S. cattle herd is rebuilt.