Two Nebraska producers receive federal grants to support local meat processing

NORFOLK, Neb. -- Two projects in Nebraska are receiving millions of dollars in federal aid supporting the expansion of local meat processing.

USDA Secretary Tom Vilsack made the announcement Wednesday morning, noting that Lot 279 in Wisner and Norfolk will receive over $600,000 and the Greater Omaha Packing Plant in Omaha will get nearly $20 million.

Vilsack said the grants are part of the first round of the Meat and Poultry Processing Expansion Program (MPPEP). He said the aim of the program is to expand meat and poultry processing capacity, which he said in turn increases competition, supports producer income, strengthens the food supply chain, and creates jobs and economic opportunities in rural areas.

“Since President Biden laid out a commitment at the start of this year, USDA has worked tirelessly to give farmers and ranchers a fair chance to compete in the marketplace,” Vilsack said. “By jumpstarting independent processing projects and increasing processing capacity, these investments create more opportunities for farmers and ranchers to get a fair price, while strengthening supply chains, delivering more food produced closer to home for families, expanding economic opportunity and creating jobs in rural America.”

Lot 279, LLC, which is based in Wisner, is receiving $688,011 from MPPEP. Lot 279 has been selling beef products in direct-to-consumer retail since 2016.

In an effort to capitalize on the expanding interest in family farms building their own beef brands, Lot 279 said it intends to build a federal inspection portion cutting and further processing facility for use by at least three family-owned cattle producers who seek to create their own brands of value-added beef products.

The company will provide fee-based processing and other services, including portioning and grinding services, processing, and manufacturing of meats for sale to wholesale or retail customers. Lot 279 officials said they will ensure that small and mid-sized kill facilities are fully utilized.

The Greater Omaha Packing Company of Omaha, NE is receiving $19,982,400 from MPPEP. It is a privately owned company that procures cattle primarily from independent producers in Iowa and Nebraska. They process 2,400 heads of cattle daily for customers across the country and to 70 nations worldwide, company officials said.

The company is taking a phased approach to increase slaughter and processing throughput from 2,400 cattle per day to 3,100 head per day, which equates to an additional annual production of 195,000 cattle per year, involving equipment purchases, automation systems, and facility improvements. The expansion will create 275 jobs, company officials said.

An email sent by Rep. Don Bacon's office stated that Bacon wrote a letter supporting approval of the grant.

“The potential Investment in Greater Omaha Packing’s expansion could help diversify opportunities for meat production in the United States, create new jobs, and expand opportunities for independent livestock producers," Bacon said in his letter to the USDA.