Funding fuels growth in ND meat industry

By Scout Nelson

In North Dakota, a focused effort is underway to strengthen the local meat processing industry, crucial for rural communities' economic resilience. Ellen Huber, the rural development services director for the North Dakota Association of Rural Electric Cooperatives (NDAREC), emphasizes the importance of incremental steps in development rather than solely aiming for large-scale achievements.

The initiative gained significant momentum thanks to a substantial grant from the U.S. Department of Agriculture’s Meat and Poultry Intermediary Lending Program (MPILP).

This $10 million grant established a revolving loan fund managed by the Rural Development Finance Corporation (RDFC), which includes member-owners like North Dakota’s electric and telecommunications cooperatives and the Broadband Association of North Dakota.

This fund is earmarked specifically for local meat and poultry businesses that are starting up, seeking expansion, or aiming to enhance their operations. By offering loans at low interest rates, the program not only supports the immediate needs of these businesses but also plans for the long-term sustainability of the food chain system in North Dakota.

As the initial loans are repaid, the funds will "revolve," allowing continuous reinvestment in various projects beyond meat processing. This could include food processing, storage, distribution, and transportation projects, broadening the scope of the fund’s impact.

Furthermore, having a dedicated fund for food-related initiatives allows RDFC’s existing $9 million revolving fund to extend its support to other crucial rural services such as ambulance services, fire safety, and small businesses, according to Huber.

The impact of this funding is already visible. For instance, Kramlich-Deede Meats in Medina utilized a RDFC MPILP loan to refinance a prior loan and upgrade its facilities, allowing it to meet state inspection standards.

Similarly, the new owners of Yellowstone River Beef in Williston have leveraged a nearly $2 million loan to transform their business model to focus on custom slaughter and direct beef sales, significantly enhancing their operational capabilities.

This targeted financial support not only fortifies the meat processing industry in North Dakota but also ensures that the state remains a key player in the national agricultural sector by fostering sustainable practices and supporting local economies.

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