Will Idaho Packers, Livestock Sector Benefit From SPUR?

Earlier this summer, USDA announced a plan to help the struggling packer sector and ideally benefit producers and consumers as well.

The Strengthening Processing for U.S. Ranchers, or SPUR Program, looks to temporarily support eligible beef processing facilities with $500 million earmarked for small and medium sized processors. Idaho State Department of Agriculture Director Chanel Tewalt said processors in the Gem State have long advocated for a program like SPUR, but the devil is always in the details. Tewalt said if USDA is going to spend half a billion dollars, the Department must use decrement when it comes to those that receive funding.

"Making sure to invest in packers that are likely to succeed in the future, not just those who are going to go under or likely to be gobbled up by, again, the Big Four," Tewalt stressed. "And not to say the Big Four aren't important, obviously, in beef packing in America.”

Mid-size Packers Are Key For The West

Tewalt said in Idaho, and the Intermountain West for that matter, the local agriculture industry likes to see mid-sized processors that are dedicated to the producers, a place where they have a name and a relationship. She added sustainable, realistic packer investments are key to a successful mid-sized category.

“Which in a lot of ways has been a bit of a donut hole," said Tewalt. "There is investment with really big processors. There actually has been some investment with really small processors as well, and there was quite a few tranches of money that came through in the previous administration. Mid-size packers, again, this group that I've been talking about already is so pivotally important to Idaho because they're still processing big enough numbers to be very helpful to us as an industry, whether it's a cull plant for dairy, which we have and are so lucky to have, it's the premium products with AgriBeef, it's so many of these things that we benefit from as a state and makes for an excellent beef community at large.”

Smart Investments Will Benefit Everyone

Tewalt noted these SPUR investments, if done correctly, will benefit not just producers, not just packers, but foster an environment where everyone can be successful.

Click our podcast below for more of Tewalt’s thoughts on the SPUR program and all things Idaho Ag:

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