USDA’s SPUR Looks To Strengthen Cattle Markets

On Tuesday, USDA announced it was launching a new program aimed at strengthening cattle markets by supporting independent and regional beef processors

Ag Secretary Brook Rollins said this week the new Strengthening Processing for U.S. Ranchers, or SPUR, program will provide up to $500 million to eligible U.S.-owned beef processing plants facing higher cattle costs during the nation's smallest cattle herd in 75 years.

Part Of USDA's Effort To Strengthen Capacity

“America’s ranchers deserve a strong, competitive marketplace that rewards their hard work and preserves opportunity for generations to come,” Rollins noted. “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," Rollins continued. "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.”

USDA says helping smaller processors stay in business will give ranchers more places to market their cattle, increase competition in the beef industry, and reduce reliance on the four companies that currently control nearly 85% of U.S. beef processing.

These payments are authorized under the Commodity Credit Corporation Charter Act and are administered by the FSA. 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.

“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.”

Helping Small Processors Helps Rural Communities

“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.”

Officials say preserving regional processing capacity will also support value-added beef programs, strengthen rural economies, and position the industry for growth as the nation's cattle herd begins to rebuild. USDA added maintaining this regional processing capacity is also a key part of the Make America Healthy Again movement by ensuring access to high-quality protein in alignment with the new Dietary Guidelines for Americans.

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