We’ve had multiple instances where prospective clients ask us similar questions about the Meat and Poultry Processing Expansion Program (MPPEP). Ahead of its expected return, we’ve decided to make the MPPEP simpler to understand for all those interested in potentially applying to the program in the future.
The Meat and Poultry Processing Expansion Program (MPPEP) grants funds to expand meat and poultry processing businesses. MPPEP was created to encourage competition and sustainable growth in the U.S. meat processing industry through funding grants. The program grants funds for expanding and properly operating previously established slaughterhouses and other meat and poultry processing facilities.
For questions about MPPEP eligibility, how to apply, what makes it different from the Food Supply Chain Guaranteed Loan Program, continue reading below. Note that program details may slightly differ year to year.
About the MPPEP Opportunity
The U.S. meat processing sector has experienced significant consolidation in recent years. This consolidation has had several implications for the industry, including reduced competition, higher prices for consumers, and reduced resiliency in the event of a disruption in the supply chain. The MPPEP is intended to address these issues by encouraging the expansion of capacity among smaller processors.
The program provides grants of up to $25 million to eligible processors to help fund expansion projects. To be eligible, processors must be located in a rural area and are subject to the Federal Meat Inspection Act or the Poultry Product Inspection Act.
The MPPEP is a competitive program, and applications will be evaluated on many factors, including the projected impact of the expansion on competition, feasibility, prices, and resiliency in the supply chain. Preference will be given to projects that are likely to have the largest impact in these areas.
Eligibility:
What categories of processors are eligible to apply for this program?
- The Federal Meat Inspection Act or the Poultry Product Inspection Act must apply to anyone who processes or intends to process in the meat sector.
- Those who intend to obtain a Federal Grant of Inspection from the USDA Food Safety and Inspection Service.
- Those who abide by all applicable federal, state, local, and tribal laws, as well as the National Environmental Policy Act, Section 106 of the National Historic Preservation Act, and other laws.
How can funds be used?
Funds granted to meat sector businesses can be spent on expanding and operating capacity and assisting initiatives like:
- Providing for the construction, modernization, or expansion of processing facilities.
- Upgrading or installing modern equipment and technology.
- Ensuring adherence to the rules for packaging and labeling.
- Maintaining occupational and other safety standards.
- Modifying buildings or machinery to safeguard food safety.
- Compensating the costs of becoming an inspected facility.
- Supporting the hiring, training, and retention of workers.
What is the maximum grant amount?
Applicants can receive funds with a maximum of $25 million requested. Also, grants may range from 20% of your total project cost.
MPPEP vs. Food Supply Chain Loan Guarantee Program (FSC) comparison
MPPEP |
FSC |
For those who want to expand already established meat and poultry project | To expand access to and financing those who are into strengthening food system infrastructure |
Up to $25 million is available for borrowing | Loan guarantees up to $40 million |
For private, nonprofit organizations, public agencies, federally-recognized Tribes, and cooperative lenders. | For profit and nonprofit lenders, including chartered banks, credit unions, CDFIs, and Farm Credit Institutions. |
Those who are subject to the Federal Meat Inspection Act or the Poultry Product Inspection Act. | Borrowers must be companies or organizations supporting operations in the food supply chain (aggregation, processing, distribution, etc.). |
No specific fund cycle was mentioned. | Until funds run out, loan guarantees are given to lenders on a project-by-project basis. |
When is the MPPEP likely to return?
Currently, there is no confirmed timeline for the return of the MPPEP program. While there is no official or definitive timeline for the return of the MPPEP, it is expected that the government will prioritize its revival in the upcoming fiscal years, as it is crucial for the sustainable development of America. As we await further updates, it remains essential to recognize the vital role of the MPPEP in promoting sustainable economic growth and improving the quality of life for all businesses in the meat sector.
For now, businesses continue to receive their funding from last year’s program cycle:
- Riverbend Meats LLC: An Idaho beef processor received a $25 million grant for a new environmentally-friendly processing facility.
- Prestage Farms LLC: A South Carolina-based firm received a roughly $25 million grant to equip a new facility.
- CNF Enterprises: A South Dakota-based enterprise received a $3.3 million grant for building a facility in New Underwood, South Dakota.
- Holly Poultry, LLC: A Maryland-based firm received a roughly $2 million grant for modern equipment purchases.
How can August Brown help you with the MPPEP?
A feasibility study is required for any MPPEP application. August Brown’s team of experts will be glad to assist.
August Brown has successfully supported applications for the FSC Guaranteed Loan Program and the Meat and Poultry Processing Expansion Program. Our proficient professionals have the expertise and knowledge to help you navigate the complex process of evaluating your project’s technical, financial, environmental, market, and management feasibility.
Our team can help you assess your project’s potential risks and benefits, as well as identify potential challenges and barriers to success. We’ll work closely with you to ensure that your feasibility study is thorough, accurate, and tailored to your unique needs and objectives. With August Brown on your side, you can be confident that you’re making informed decisions and maximizing your chances for success.
Contact our experts to learn more about the MPPEP application process and how we can help!