The USDA this week announced the launch of a loan guarantee initiative to create more market opportunities, promote competition and strengthen the country?s food supply chain.
U.S. Secretary of Agriculture Tom Vilsack on Monday said the USDA is planning for another $100 million in funding from the American Rescue Plan Act. Vilsack explained the funding would leverage hundreds of millions more in lending through community and private sector lenders to expand meat and poultry processing capacity and finance other food supply chain infrastructure.
?The pandemic exposed a number of weaknesses in our food supply chain and the need for more support for expanded processing,? said Vilsack. ?And, for helping to improve existing small and very small processing facilities.?
Vilsack says the department plans to publish specific details on the new program and how to apply as part of USDA?s Build Back Better Initiative, a comprehensive plan to invest $4 billion to strengthen the resiliency of America?s food supply chain while promoting competition.
USDA?s announcement follows the administration?s announcement earlier this month of steps it is taking to address concentration in the meat-processing industry, adding a new commitment of $100 million for loan guarantees on top of the previously announced $500 million investment to expand meat and poultry processing capacity.
?I think all of what we are doing in providing small and very small facilities to remain in business, to assist them, to expand market opportunity, to potentially build new processing capacity over time, all of that is going to stabilize the market and make it a much more resilient supply chain,? said Vilsack.
For more information, visit usda.gov.
