Blog

The U.S. Department of Agriculture (USDA), Rural Development (RD) Rural Business‐Cooperative Service requests applications for the Meat and Poultry Processing Expansion Program – Phase 4 (MPPEP-4). USDA is making $60 million in grant funding available to meat and poultry processors to maximize the value and utilization of their existing capacity, with a focus on promoting local supply chains. Applications are due August 7, 2026.

What is the purpose of MPPEP-4?

The primary purpose of MPPEP‐4 is to support the American Beef Industry by increasing processing capacity and promoting more competition in the sector, which is particularly vulnerable to disruption, consolidation and concentration. MPPEP-4 is targeted to support very small processors (less than 10 employees), small processors (10-499 employees), and intermediate processors (between 500-3,000 employees) engaged in the primary processing of cattle, with a focus on promoting local supply chains.

What is the available funding and award size?

Approximately $60 million is available to fund projects. Award amounts and cost share requirements vary by project type:

1. Processing Expansion Projects: Awards will range from $50,000 to $2 million to support a range of activities to increase and diversify processing capacity of American meat and poultry, including Equipment-only purchases over $250,000, and necessary improvements, upgrades, renovations or retrofits to an existing facility needed to install the equipment. A match requirement of 50 percent of the project cost is required for Processing Expansion Projects. 
2. Simplified Equipment-Only Projects: Awards will range from $10,000 to $250,000 for projects that only request the cost of equipment and do not include renovation, labor, installation, or certification costs.  A match requirement of 25 percent of the project cost is required for Simplified Equipment-Only Projects. 

Who is eligible to apply?

Eligible applicants include For‐Profit Organizations, Nonprofit Organizations, Producer‐owned cooperatives, Tribes, and Tribal Entities. Privately‐owned entities must be Independently Owned and Operated, and all applicants must be Domestically Owned.

Eligible applicants also must:

• Be currently engaged in the primary processing of cattle for commercial markets or toll process and been in operation for at least one year (as of the date of the application);
• Meet the definition of Very Small Processor, Small Processor, or Intermediate Processor in Section 1.3 of the MPPEP Phase 4 Notice of Funding Opportunity (linked below);
• Currently operate under a Food Safety and Inspection Service (FSIS) grant of inspection, grant of inspection under a Cooperative Interstate Shipment Program, or a state meat and poultry inspection program with standards at least equal to Federal inspection;
• Be Independently Owned and Operated;
• Be Domestically Owned; and
• Operate their processing facility in any of the 50 states of the United States, the Commonwealth of Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, or the Republic of the Marshall Islands.

What activities are eligible for funding and what is the grant’s period of performance?

MPPEP grant funds may only support costs incurred during the period of performance of the award, which is 36 months for Processing Expansion Projects and 24 months for Simplified Equipment-Only Projects.

The period of performance starts when a Financial Assistance Agreement between the applicant and RBCS is executed, estimated to begin after the anticipated award selection date of October 22, 2026.  

Eligible activities are separated by project type and outlined below:

1. Processing Expansion Projects:

• Purchasing or upgrading old or outdated processing equipment, including refrigeration, cold storage expansion, packaging and labeling equipment, smokers, vacuum tumblers, mixers, grinders, slicers and other further processing and value‐added equipment. Funds or equipment may be used for processing meat and poultry at the proposed facility.
• Purchasing and installing virtual grading equipment, special‐purpose inventory management and traceability software, x‐rays, and other equipment designed to improve processing capacity across multiple product lines
• Purchasing or upgrading composting and other solid or liquid waste treatment equipment 
• Upgrading equipment to ensure food safety
• Purchasing or updating equipment to increase byproduct and other types of carcass utilization;
• Developing, customizing, and installing equipment, devices, and technology that automates processing functions to improve worker conditions and safety
• Purchasing new or retrofitting existing mobile or modular processing units
• Developing, customizing, and installing equipment that reduces greenhouse gas emissions, and/or increases efficient water use
• Making internal or minimal external improvements, upgrades, renovations or retrofits (modifications) to an existing facility needed/necessary to install the new equipment; allowable construction activities include necessary electrical upgrades, HVAC‐related improvements, and room reconfigurations (usually involves more than a room), and all expenses must be allocable/necessary to the equipment installation
• Marketing costs targeted specifically towards 1) local producers to increase the supply of livestock or poultry or number of producers requesting toll processing services from the facility, 2) local consumers such as schools, restaurants, boutique stores, local grocery stores, etc., and 3) development of local markets for offal, hides, tallow, pet food, etc., to reduce operational expenses
• Training on the use of all equipment purchased under the grant and associated new processes
• Processor costs associated with obtaining certification under the USDA National Organic Program or Process Verified Program
• Ensuring compliance with occupational and other safety requirements under applicable law; including revising existing Hazard Analysis and Critical Control Points (HACCP) plans
• Personnel and fringe benefits costs directly related to the implementation of the project, to include financial and performance report development, award compliance, and other management costs associated with procurement for the project.  Costs must be reasonable and cannot include day‐to‐day operations expenses.

2. Simplified Equipment-Only Projects will fund equipment purchases to processors engaged in the primary processing of cattle. The equipment may be used for any meat or poultry processing performed at the facility. Grant funds used to fund Simplified Equipment‐Only Projects can only be used to fund equipment purchases, but not associated renovation, labor, installation, or certification costs.   

How can eligible applicants apply?

Applications are due through Grants.gov no later than August 7, 2026 at 11:59 p.m. Eastern Time. The full Notice of Funding Opportunity can be found here.

Morrison has extensive experience writing successful applications for clients for USDA programs. For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.