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Iowa Rep questions Vilsack about meat processor program

An Iowa Congresswoman has concerns about USDA’s 500-million dollar expanded meat and poultry processing grant program.  Cindy Axne told a House Ag Committee hearing Thursday more local processing is badly needed. “During the pandemic, cattle prices had declined by 18% while boxed beef prices went up by 80%, so what we’re seeing, of course, is producers being paid less, consumers are paying more, but the packers control over 80% of the market and are making significant profits.”

But, Axne says it is unclear what happens if a small processor utilizes the program, and that processor then sells the business. “I’m a bit concerned that these new resources could ultimately benefit the large packers if they’re allowed to purchase their competition and retain their market power.”

Ag Secretary Tom Vilsack says as a former Governor, he appreciates clawback provisions used by states when funding community development projects and says this program must be structured in a way that justifies to taxpayers their resources are used in a thoughtful and appropriate way.

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