Elizabeth Miglin | July 13, 2021
U.S. Agriculture Secretary and former Iowa Governor, Tom Vilsack announced plans to provide $500 million in loans and grants to increase competition in the meat processing industry, on Friday.
In his speech, Vilsack emphasized the negative effects of four major meatpacking companies dominating over 80% of the beef market. Noting, 89.6% of farms do not generate the majority of income for the families who own and operate them. The loans and grants are aimed to help small and medium sized packing operations expand over time.
The announcement occurred on the same day President Biden signed an executive order which requires the U.S. Department of Agriculture to add rules to the Packers and Stockyards Act in an effort to allow farmers more sway in determining prices for livestock.
Both Iowa Secretary of Agriculture Mike Naig and U.S. Senator Chuck Grassley, R-Iowa, voiced cautious optimism for the efforts to address the anticompetitive practices in the livestock markets. However the United Food and Commercial Workers International, a major union for meatpacking company employees say the aid is necessary. Adding, meatpacking workers were among the most negatively impacted by COVID-19.