The USDA recently announced the new Strengthening Processing for U.S. Ranchers (SPUR) Program to provide temporary support for eligible beef processing establishments. Under SPUR, the U.S. Department of Agriculture will provide up to $500 million in payments to eligible beef processors.

“These payments are authorized under the Commodity Credit Corporation Charter Act and are administered by the Farm Service Agency (FSA),” according to the USDA press release.

“Payments are intended to provide financial support to eligible beef processors who have faced increased costs of acquiring cattle for processing due to the abnormally low number of cattle being raised in the U.S at this time and other conditions currently impacting the cattle market.”

According to the press release, eligible processors who have contact information already on file with USDA’s Food Safety and Inspection Service (FSIS) will receive additional information, including applications, directly from that agency.

To be eligible for SPUR funding, beef processing establishments must be federally inspected and U.S. owned, and cannot be “nationally dominant in beef processing (or owned by an entity that is).”

The program spells out that “nationally dominant” criterion as meaning that it cannot hold “a market share greater than or equal to the entity holding the fourth-largest share of the beef processing market.”

“For decades, the beef processing industry in the U.S. has been heavily concentrated and today just four companies control nearly 85% of the beef processing market, including two foreign owned companies,” the release explains.

“Ensuring domestic processors can continue operating during this period where the U.S. cattle herd is at a 75-year low is critical to national security and will ensure a strong supply chain once the herd is rebuilt.”

In related news, August 7 is the deadline to apply for grants from USDA Rural Development’s Meat and Poultry Processing Expansion Program (MPPEP).