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The Farmer's Exchange Online New Legislation Would Help Expand Processing - Farmer's Exchange

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New Legislation Would Help Expand Processing


by Stan Maddux

Published: Friday, October 23, 2020

Federal legislation has been introduced to relieve major bottlenecks in the supply chain between small-scale ranchers and consumers.

The Strengthening Local Process Act would provide fund-ing to expand capacity at small and mid-sized meat processing companies and build new similar sized plants.

Many small and mid-sized processors, including some in northern Indiana, have real-ized a dramatic increase in business from people fearing meat shortages in the grocery stores caused by larger plants temporarily closing because of COVID-19 outbreaks.

Many of the smaller-scale processors, though, lack the resources needed to expand their operations.

The result has been longer waits for consumers wanting sides and quarters of meat processed, and farms with a backlog of animals waiting to be accepted at plants without adequate capacity.

"It's been crazy," said Leonard Miller, owner of Homestyle Butchering at 59989 E. County Line Rd. be-tween Shipshewana and Middlebury.

Joe Moore, executive vice-president of the Indiana Beef Cattle Assn,, said small processors, because of the rising popularity of locally grown foods, were already dealing with considerable bottlenecks made worse by the pandemic.

"Most lo-cal processors, if you called one today and said I have a steer I would like to bring in, he would tell you about next August you might be able to get one in," Moore said.

The legislation was presented by U.S. Reps. Chellie Pingree (D-Maine) and Jeff Fortenberry (R-Neb.).

The meas-ure also includes funding to increase the number of inspectors that would be needed from having more beef processed at small and mid-sized operations.

The legislation calls for the federal share of costs for state inspection to increase from 50 percent to 65 percent to encourage more states to operate state inspection programs.

"It doesn't really do any good to build plants and increase our capacity if we don't have inspectors to inspect the product to make it available to the consumer," Moore said.

The legislation would also direct funds to small plants, universities and technical colleges to train additional workers that would be needed at the larger and new meat

processing operations.

Resources would also be provided to help small and very small plants obtain necessary certification.

"New markets are new opportuni-ties," said Johnathan Hladik, policy director for the Center for Rural Affairs. "Small meat lockers are catalysts for economic activity. The Strengthening Local Processing Act will make it possible for these businesses to grow and expand."

Hladik also said the bill invests in the next generation of small meat processors by offering grants to train small-plant operators and employ-ees.

"This legislation reflects the priorities of farmers and business owners from across the nation," he said.

Miller said he's booked until April for processing hogs and at least until the end of the year for beef.

He's been seeing more customers because of the locally grown foods movement, but with COVID "everything went by leaps and bounds," he added.

Miller said he's also seen an increase in business from people who used to be customers at a couple of butcher shops in southern Michigan that closed in the past 18 months and one processor deciding to offer product strictly through retail sales.

Miller, who began cutting meat in 2007, said he has a need to expand but is undecided whether to apply for some of the grant money.

He's also processing fewer deer to minimize the wait for his regular beef customers.

The beef industry in Indiana consists primarily of calves being sent to states with more wide-open spaces out West for finishing.

Moore said there are enough small ranchers serving customers wanting to fill up their freezers, though, for the legislation to have a meas-urable positive impact here.

"These guys would love to sell more freezer beef. Problem is we just can't get them in for processing," he said.

Moore said his organization just received $4 million in federal Cares Act money to help create more small meat processing plant capacity in the state.

He said the cost of a typical new moderately sized operation is about $2 million.

"We need bigger facilities and we need a trained workforce. That's going to be difficult. The money is wonderful but there are still some obstacles to overcome," Moore said.

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