MFU loan boosts meat market

By Scout Nelson

Last month marked a milestone for the Minnesota Farmers Union (MFU) Foundation with the completion of its first Meat and Poultry Intermediary Lending Program (MPILP) loan. The beneficiary, Morgan’s Meat Market in Waseca, is set to enhance its processing capabilities thanks to this financial support.

Owners Dean and Barb Morgan expressed their gratitude, noting, “We thank Farmers Union Foundation for the loan, which will assist us as we expand our production area, upgrade to more efficient equipment and develop a new product line where there is growing demand.”

The Morgans aim to increase their production significantly, targeting 2,000 to 3,000 pounds of snack sticks daily by summer’s end.

The MPILP aims to bolster small to medium-sized meat and poultry processors by providing low-interest loans. This initiative helps these businesses start, expand, or improve their operations, contributing to the state's processing capacity.

Dave Endicott, MFU Special Projects Coordinator, explains, "The MPILP program provides low-interest loans to help new and expanding meat processing businesses."

With approximately $900,000 in revolving funds, the MFU Foundation is prepared to support numerous projects. To date, the foundation has received five full applications and eight inquiries, demonstrating significant interest in this financial aid.

Loans offered under the MPILP are substantial, allowing up to $100,000 at a fixed interest rate of 4 percent for up to ten years. These funds can be applied towards various business needs, including land purchases, equipment, and start-up costs.

MFU President Gary Wertish, who also leads the MFU Foundation, emphasized the broader impact of such initiatives, stating, “An independent, diverse meat processing industry is essential to a diverse, independent livestock production industry and a cornerstone of rural economic development.”

This program is made possible through a grant from the USDA Rural Development, reflecting the combined commitment of federal and state entities to enhance rural economies by supporting agriculture.

The partnership between the MFU and local processors promises to foster growth and sustainability in the meat processing sector, benefiting the entire agricultural ecosystem in Minnesota.

Photo Credit -minnesota-farmers-union