USDA Issues Grant and Loan Awards

OMAHA (DTN) -- USDA announced $195.9 million in a mix of loans and value-added grants on Monday pegged to improve the supply chain for food and agriculture.

The funding announcement was tied to the first meeting of the White House Council on Supply Chain Resilience as the Biden administration seeks to highlight programs meant to "strengthen supply chains critical to America's economic and national security." The administration also looks to change Americans' perceptions of inflation and the strength of the economy.

USDA rolled out loans and grants for 185 projects across 37 states.

INDUSTRY LOANS

The bulk of the funding, $164.2 million, is tied to seven industry loans, including a couple of loans for $40 million each for separate projects in Florida and Texas.

-- Lactologics in Lucie, Florida, will develop a "donor-based non-perishable breast milk" facility that will expand breast milk storage and stability. "This process significantly improves industry capacity, especially for premature infants."

-- Lone Star Bakery, a third-generation family business in Texas, plans to expand its operation with land purchases, property improvements and equipment to modernize the bakery.

-- A $29.5 million loan will go to California Custom Processing LLC to help a $33-million facility expansion of almond and nut processing near Madera, Calif. The project will increase processing by 30% to more than 100 million pounds of almonds annually.

VALUE-ADDED PRODUCER GRANTS

Another $31.7 million is going to 178 projects that will receive USDA Value-Added Producer Grant funds. The grants range from $5,200 to $250,000. Among the projects:

-- Ledgerock Distillery LLC in Wisconsin received $250,000 to increase marketing for the distiller's bourbon, whiskey, vodka and gin. It's estimated the funding will increase the distiller's customer base by more than 6,200 buyers.

-- MTX Beef LLC in Texas received $250,000 to help with working capital for MTX Beef to offset processing and packaging expenses for marketing vertically integrated beef into the South Texas market.

-- Merchant's Garden LLC, a hydroponic and aquaponic farm in Tucson, Arizona, received $250,000 to expand marketing and sales of prepackaged salad mixes to help them become a local supplier of organic leafy greens for southern Arizona.

-- Lot 279 LLC in Norfolk, Nebraska, received a $250,000 grant process, market, distribute and advertise its direct-to-consumer beef cattle cuts and shares. The project is expected to increase revenue for the company by almost $600,000 a year and increase its customer base by 4,800 people.

SUPPLY CHAIN RESILIENCY

The White House said the focus on supply chain resiliency is part of President Joe Biden's "Bidenomics agenda to lower cost for American families."

Along with USDA's award announcements, the president will issue an order for the Department of Health and Human Services to boost investment in domestic manufacturing of essential medicines.

The Department of Transportation also launched an effort to improve maintenance along the country's "freight network and supply chains." The object is to get American businesses' products "to shelves faster" and ideally lower costs for consumers as well.

The White House highlighted that inflation has come down after peaking at 9.1% in June 2022 to 3.2% reported in October.

The full list of loan and grant awards can be found at https://www.rd.usda.gov/….

Chris Clayton can be reached at Chris.Clayton@dtn.com.

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