# The Butcher Block Act: What It Does

This bill creates a new government lending and grant program designed to help build more meat and poultry processing facilities across the country. Right now, a handful of large companies control most of the meat processing industry in America, which means farmers and ranchers have limited options for where they can sell their animals. This bill aims to break up that concentration by making it easier and cheaper for new processing plants to get built, especially in rural areas.

The bill does two main things. First, it allows the U.S. Department of Agriculture to make loans and loan guarantees up to $50 million (or $100 million for farmer cooperatives) to help people start new processing businesses or expand existing ones. These loans can pay for building facilities, buying equipment, hiring workers, or meeting health and safety regulations. The government is essentially saying "we'll back your loan" so banks are more willing to lend money to processing startups that might otherwise seem too risky. Second, the bill provides direct grants of up to $20 million per year to help with planning, training, and technical support—things like feasibility studies to figure out if a processing plant makes business sense, or training programs to teach people how to run these facilities.

Who benefits? Farmers and ranchers would gain more options for selling their livestock instead of being forced to work with the few giant processors that currently dominate the market. New entrepreneurs and existing small processors could access government-backed financing to grow their businesses. Rural communities could see new jobs and economic development. However, the bill specifically blocks large foreign companies and the biggest existing processors (those handling over 5 percent of daily meat production) from getting these loans, ensuring the money goes toward creating real competition rather than helping already-dominant players get bigger.

The bill authorizes $100 million per year for loans and $20 million per year for grants from 2024 through 2026, making this a meaningful but not enormous investment in reshaping the meat processing industry.

Butcher Block Act

Rep. Johnson, Dusty [R-SD-At Large]

Butcher Block Act This bill authorizes the Department of Agriculture (USDA) to make (or guarantee) loans and award grants for establishing, expanding, and otherwise supporting livestock and poultry processing and related activities. In awarding grants and making or guaranteeing loans, USDA shall prioritize applicants that have experience in livestock and poultry processing and can quickly scale-up to increase overall processing capacity in the region involved.