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Meat and Poultry Industry NewsMeat and Poultry ProcessingRegulationsIndependent Processor

Commentary: NMPAN

Freezing grant funds puts a chill on rural America and the meat supply

Federal payments or reimbursements on millions of dollars of grants to meat processors have been frozen due to President Trump’s executive orders.

By Rebecca Thistlethwaite
Cash
Image by Brett Hondow from Pixabay

Image by Brett Hondow from Pixabay

February 20, 2025

The views expressed in this article are those of Rebecca Thistlethwaite’s and not those of Oregon State University where NMPAN is housed. Feel free to reach out to Rebecca if you have a different opinion or if you have a related story to share. She wants to hear from you! thistler@oregonstate.edu.

As you have probably seen on the national news, many federal grant programs have been frozen due to President Trump’s executive orders. This means they are not making payments or reimbursements on millions of dollars of grants.

Even though two judges have issued temporary restraining orders directing the federal government to continue funding their existing grant contracts, many government departments and agencies are still not processing payments after Jan. 19, 2025. The meat and poultry industry, unfortunately, is experiencing this as well. Hundreds of grants have been made to this sector over the last few years as a result of the Biden administration’s efforts to diversify the meat processing industry and make it more resilient to shocks, as well as provide more options to meat producers.

These grants include MPIRG (2 rounds), MPEPP (2 rounds), Local MCap, and the Indigenous Animals Harvesting and Meat Processing Grant Program (IAG) grants. Other related grants to meat producers and processors, such as the Value-Added Producer Grants, Local Food Promotion Program grants, Renewable Energy for America Grants, NRCS grants, and others have been effectively frozen, despite the judge’s orders.

NMPAN and partners such as American Association of Meat Processors, American Meat Science Association, Flower Hill Institute and others have worked hard to provide outreach and support over the years to help hundreds of small and mid-scale processors know about these grant opportunities and submit successful applications. We have celebrated many of the wins and are now deeply dismayed by those funds being held up. These are real American businesses and lives we are talking about that are being caught in the political crosshairs. At what cost?

Some of the stories we have been told include the following (names withheld to protect people from political retaliation):

  • $317,645 frozen for a vertically integrated pastured poultry operator for processing equipment, H2A program, and farm water system upgrades
  • $100,000 in refrigeration upgrades frozen for a small custom-exempt operator who was going to go under USDA inspection but now will not be able to
  • $120,000 for a new farmer-owned processing facility to upgrade their humane handling equipment
  • $50,000 to close out a MPIRG grant and finish paying their suppliers for new packaging equipment

 And many more ...

One person who served as a grant reviewer and read many of these applications had this to say, “As someone who served as a reviewer on these grant applications, I have a deep appreciation for the level of scrutiny and analysis that went into making the final determinations of approved grant recipients. The failure to reimburse grant recipients for previously authorized federal obligations is both illegal and severely wrongheaded.”

As AAMP wrote in their recent newsletter article on the same subject- “Furthermore, the money has already been awarded. Companies have poured concrete for new construction and ordered equipment for expanded processing. When the payment is frozen, or worse, canceled, the consequences could drive a small processor out of business.”

If you are struggling with frozen grant funds or if you believe this situation is unfair, we encourage you to reach out to your elected officials and let them know your opinions. Use this search page to find your US Representative or Senator’s contact information.

NMPAN will continue to provide technical assistance to small and mid-scale meat processors and producers despite the freeze. Although some of our funding is also unknown, we will continue to provide the highest level of service to the hundreds of stakeholders we help every year. We are more resolute than ever in our commitment to you and the niche meat industry.

KEYWORDS: grants NMPAN small processors

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Rebecca Thistlethwaite is director of Niche Meat Processor Assistance Network (NMPAN).




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