A group of Texas Panhandle cattle raisers is building its own beef processing plant in Dimmitt, Texas, with a loan guarantee from the US Department of Agriculture (USDA). Vice President J.D. Vance announced the support on 29 October through USDA Rural Development's Business and Industry Guaranteed Loan Program (B&I Program).
The plant will be locally owned and USDA-inspected. It is backed by a $24.6 million commercial loan, will process about 400 head of cattle a day and is expected to create 220 new jobs paying an average of $30 an hour, according to USDA.
The project was started by 36 local investors who raise cattle across the Texas Panhandle. USDA says their aim is to create an alternative to the major national meat-processing companies and to support more competitive beef prices for producers.
Secretary of Agriculture Brooke L. Rollins said the administration has supported ranchers and small businesses working to rebuild the US cattle herd, and that the new facility would process 400 head a day and create 220 jobs in Dimmitt.
Under the B&I Program, USDA guarantees loans that commercial lenders make to rural businesses, to support business development, job creation and economic growth in rural areas. The guarantees are open to eligible rural businesses, cooperatives and lenders across the country. The release does not say what share of the $24.6 million loan the guarantee covers.
For cattle producers in the region, the plant offers a place to have their animals processed close to home by a business owned by people in the trade, rather than by one of the large national packers.
Photo: Dawn Cattle Feeders feedlot in Canyon, Texas, Preston Keres, USDA / Wikimedia Commons (public domain)
Source: USDA
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