What is the Meat and Poultry Processing Expansion Program?

The MPPEP provides grants to help eligible meat processors expand their capacity. USDA Rural Development designed this program to encourage competition and sustainable growth in the U.S. meat processing sector, and to help improve supply chain resiliency. For MPPEP, USDA Rural Development is particularly interested in supporting projects that are:

  • In the late stage of development
  • Technically feasible
  • Financially viable
  • Have already identified other sources of funding from federal, state, Tribal, local, or private sources

How much funding has been available?

The Biden Administration dedicated $1 billion in American Rescue Plan funds for the expansion and diversification of independent processing capacity. USDA announced a host of Meat and Poultry Supply Chain programs and initiatives to meet this objective. The maximum award amount is $25 million, or 20 percent of total project costs, whichever is less. There is no minimum award amount.

How can the funds be used?

MPPEP grant funds must be used to expand capacity by accommodating additional species or increasing production volume. As part of an expansion project, eligible activities include:

  • Building new- or modernizing or expanding existing- facilities, which can include the purchase of land, or buying an existing idle facility as part of an effort to expand that facility’s processing capacity.
  • Developing, installing, or modernizing equipment and technology
  • Ensuring compliance with packaging and labeling requirements
  • Financially viable
  • Have already identified other sources of funding from federal, state, Tribal, local, or private sources
  • Upholding occupational and other safety requirements
  • Modifying facilities or equipment to protect food safety
  • Paying for voluntary grading services on value-added processed products
  • Offsetting cost associated with becoming an inspected facility
  • Supporting workforce recruitment, training, and retention
  • Developing and installing climate-smart equipment that reduces greenhouse gas emissions, increases efficiency in water use, improves air quality, or meets one or more of USDA’s climate action goals

Who Can Apply?

Entities (regardless of legal structure) that engage – or want to engage – in expanding meat and poultry processing capacity are eligible to apply for MPPEP. Examples include Tribes and Tribal entities, for- and nonprofit entities, corporations, producer-owned cooperatives and corporations, certified benefit corporations, and state or local government entities. Private entities must be independently owned and operated. U.S. citizens must own a majority of the entity applying for support. Meat and poultry processing facilities (existing or planned) must be physically located and operated within the U.S. or its territories.

Eligible applicants must complete the following:

  • Form SF 424: Application for Federal Assistance (You will find the family of SF-424 forms on
    grants.gov at this link: https://www.grants.gov/forms/sf-424-family.html)
  • Form SF 424-C: Budget Information for Construction Programs (see above for link to SF-424
    forms)
  • Form SF 424-D: Assurances-Construction Programs (see above for link to SF-424 forms)
  • Form AD-2106: Form to Assist in Assessment of USDA Compliance with Civil Rights Laws(available at this link: https://go.usa.gov/xzqvK)
  • Form SF-LLL: Disclosure of Lobbying Activities (available as a downloadable PDF at this link:
    https://go.usa.gov/xzqvQ)

    • Application Template
    Ensure:

  • All template sections are completed with supporting documentation, as applicable
  • Certification page signed
  • Supporting Materials
  • Environmental information
  • Letter of community support if you wish to receive points for the Community Support section
  • Resolution of Support, if your proposed project is on Tribal lands and the applicant is not the Tribe, or an entity owned by the Tribe
  • Source documentation (including resumes) to support key personnel, construction labor, and operational workforce

    • Financial Viability Package
    Include:

  • A business plan
  • Three years of historical balance sheet and income statements
  • Current balance sheet and income statements (within 90 days)
  • Two years of proforma and projected financial analysis including balance sheet, income statement, and cash flow analysis.
  • Feasibility study completed by a qualified consultant*
  • Inspection Grant. Existing facilities must provide evidence that they have a Federal Grant of Inspection through USDA’s Food Safety and Inspection Service (https://go.usa.gov/xzqyA), grant of inspection under a Cooperative Interstate Shipment Program (https://go.usa.gov/xtzhG), or a Tribal or state meat and poultry inspection program with standards at least equal to federal inspection (https://go.usa.gov/xtzht).
  • Design and construction documents. For projects involving construction, include your design and construction documents.
    • If selected for funding, Rural Development will follow the construction planning and performing development regulation at 7 CFR. 4280.125 (https://go.usa.gov/xzqVK).

    Those eligible and interested in applying:

    *Reference our Feasibility Study Outline here bearing in mind feasibility studies can take 2+ months to complete depending on the amount of information available.

    Check the Request for Applications (RFA) at https://www.grants.gov/.

    More information on technical assistance resources can be found on the AMS site through the USDA.