WASHINGTON, D.C. – Small to mid-size independent beef processing establishments in the U.S. are about to receive a windfall.

The Strengthening Processing for U.S. Ranchers (SPUR) Program will 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 entities..

“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.”

These payments are authorized under the Commodity Credit Corporation Charter Act and are administered by the Farm Service Agency (FSA). According to USDA, payments are intended to provide financial support to eligible beef processors who have faced increased costs of acquiring cattle for processing due to the lowest cattle inventory on record in the U.S.

Additional information, including applications, will be provided to eligible entities using contact information that is currently on file with the USDA Food Safety and Inspection Service.

Entities eligible to receive funding under SPUR must be beef processing establishments under Federal inspection, as well as beef processing establishments inspected under the Talmadge-Aiken Cooperative Inspection Program and the Cooperative Interstate Shipment Program (CIS). Further, eligible entities must be U.S. owned and cannot be nationally dominant in beef processing (or owned by an entity that is). For purposes of SPUR, nationally dominant will be defined as an entity holding a market share greater than or equal to the entity holding the fourth-largest share of the beef processing market.

This new program also directly supports the USDA Plan to Fortify the American Beef Industry and the USDA Small Processors Action Plan that aims to ensure American ranchers have access to regional processing capacity they rely on to support branded and value-added beef programs such as the Product of USA label.

Under the Biden administration, the USDA tightened the “Product of USA” label in early 2024 so it now means exactly what it says. For meat, poultry, and eggs, companies can only use this voluntary label if the animal was born, raised, slaughtered, and processed entirely inside the United States.