USDA announced $195.9 million in a mix of loans and value-added grants on Monday pegged to improve the supply chain for food and agriculture.
The funding announcement was tied to the first meeting of the White House Council on Supply Chain Resilience as the Biden administration seeks to highlight programs meant to “strengthen supply chains critical to America’s economic and national security.” The administration also looks to change Americans’ perceptions of inflation and the strength of the economy.
USDA rolled out loans and grants for 185 projects across 37 states.
INDUSTRY LOANS
The bulk of the funding, $164.2 million, is tied to seven industry loans, including a couple of loans for $40 million each for separate projects in Florida and Texas.
— Lone Star Bakery, a third-generation family business in Texas, plans to expand its operation with land purchases, property improvements and equipment to modernize the bakery.
— A $29.5 million loan will go to California Custom Processing LLC to help a $33-million facility expansion of almond and nut processing near Madera, Calif. The project will increase processing by 30% to more than 100 million pounds of almonds annually.
VALUE-ADDED PRODUCER GRANTS
Another $31.7 million is going to 178 projects that will receive USDA Value-Added Producer Grant funds. The grants range from $5,200 to $250,000. Among the projects:
— Montana Premium Beef in Ashland will use funds to expand their customer base and enhance profitability. This start-up family farm and ranch operation raises grass fed beef cattle. The grant will provide working capital for processing costs, cold storage, marketing efforts, and transportation. The business is projected to gain 117 new customers and increase revenue by
$56,000 through the grant period
— Montana Branded in Westby is a woman-owned rural small business that raises single-sourced, grass fed, grain finished beef cattle. The family-owned ranch started operations in 2018 and will use funds to provide working capital for processing costs, transportation, packaging, and marketing. The business is projected to gain 80 new customers and increase revenue by $68,000 through the grant period
— Crooked Creek Farms LLC, in Sidney, Montana produces all-natural butter and cream made from locally raised dairy cows. The farm is solely owned by Hayley Darnielle who started the operation in 2019. The grant will provide working capital for marketing, supplies, and transportation costs. The business is projected to gain 20 new customers and increase revenues by $12,000 through the grant period.
— Bootheel 7 Ranch, LLC near Lusk, Wyoming will expand its customer base through strategic marketing and advertising for local pasture-raised cattle value-added products to reach consumers through local vendors. Grant funds will be used to market, process, and package beef jerky, beef sticks, and summer sausage throughout Wyoming and Colorado. Bootheel 7 Ranch, LLC is a cattle ranch that has been owned and operated by the Wasserburger family for over 100 years.
SUPPLY CHAIN RESILIENCY
The White House said the focus on supply chain resiliency is part of President Joe Biden’s “Bidenomics agenda to lower cost for American families.”
Along with USDA’s award announcements, the president will issue an order for the Department of Health and Human Services to boost investment in domestic manufacturing of essential medicines.
The Department of Transportation also launched an effort to improve maintenance along the country’s “freight network and supply chains.” The object is to get American businesses’ products “to shelves faster” and ideally lower costs for consumers as well.
The White House highlighted that inflation has come down after peaking at 9.1% in June 2022 to 3.2% reported in October.
The full list of loan and grant awards can be found at https://www.rd.usda.gov/….
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DTN/USDA
