By Scout Nelson
The Minnesota Farmers Union Foundation is launching a $900,000 loan program called the Meat and Poultry Intermediary Lending Program (MPILP) to support small and medium-sized meat and poultry processors, offering financial assistance for startups, expansions, and operational needs in the meat processing industry.
Eligible meat processors can access loans up to $100,000, featuring a 4 percent fixed interest rate and a repayment term of up to 10 years. The initiative allows for the purchase of land and equipment, covers startup expenses, and supports other business investments. As loans are repaid, the funds will circulate back into the program, providing ongoing support for new participants.
MFU President Gary Wertish, who also leads the MFU Foundation, highlighted the critical need for such a program. The initiative comes in response to longstanding concerns from family farmers about limited access to meat processing facilities and the exacerbated challenges brought about by the COVID-19 pandemic.
The consolidation within the food system has prompted efforts to diversify and strengthen meat and poultry processing infrastructure, an endeavor now supported by this federal loan program.
The program is underpinned by a grant from the United States Department of Agriculture Rural Development, marking a significant investment in the future of Minnesota's agricultural landscape.
By fostering an independent and varied meat processing industry, the MPILP contributes to the broader goal of enhancing rural economic development and ensuring a resilient food system. For more information Click Here.
Photo Credit - minnesota-farmers-union
Categories: Minnesota, Government & Policy, Livestock, Hogs, Beef Cattle, Poultry