STORY CITY, Iowa - The supply chain for meat processing still is dealing with issues caused by the pandemic, and smaller operations have been picking up the slack. A proposal in the Iowa Legislature would create a grant program to help with the surge in demand.

Supporters of House File 857 have said that when COVID outbreaks forced larger meat-packing plants to pause operations, producers looked elsewhere. At the same time, consumer preferences shifted to buying local meat.

Johnathan Hladik, policy director at the Center for Rural Affairs, said this created a logjam at local meat lockers that would like to scale up their operations, but can't. Today, he said, they're still in a holding pattern, asking the same questions: "How I can manage my business, how I can manage my product, and how I can serve my clients."

He said the bill would provide financial assistance to boost capacity at a time when some of the smaller meat-packers are booked into 2023. He added that the unpredictable nature of the business makes it hard to get bank loans. HF 857 cleared the Iowa House this week with no opposing votes, but it's unclear if it will advance in the Senate.

Ty Gustafson owns Story City Locker in central Iowa, where he estimated they've processed about 20% more product over the last 12 months. Gustafson was able to take advantage of some COVID relief funding for an initial expansion, but said more is needed to meet the demand that isn't going away.

"It would be beneficial to be able to do that without having to pause," he said, "or raise prices to make that happen."

Gustafson said he fears a price hike would prompt producers to look for other processers. According to the Center for Rural Affairs, maintaining new clients is crucial in the growing direct-sales industry for meat processing.

Ballots are due for Oregon's primary election on Tuesday, and one key issue for voters is the rights of workers who grow the state's food. Farmworkers were considered essential during the pandemic, but still are fighting for better conditions.

Aldo Solano, strategic partnerships manager for Oregon Food Bank, said farmworkers already were more likely to experience hunger, and the pandemic made it worse.

"Farmworkers are some of the lowest-paid workers in Oregon, earning less than $20,000 a year on average," Solano observed. "We understand at Oregon Food Bank that, in order to be able to really eliminate hunger at its root causes, we need to be fighting and working to improve the different systems that perpetuate poverty and that create conditions for folks to be food insecure."

Solano pointed out Oregon's food system is anchored by nearly 175,000 migrant and seasonal farmworkers.

Although pay is low for Oregon farmworkers, they achieved a victory in this year's legislative session. Lawmakers passed a bill securing overtime pay for those who work more than 40 hours a week.

Solano noted it was a major focus for Oregon Food Bank during the session.

"When we asked the question of how do we eliminate hunger, the root causes of hunger, this was one of the priority pieces of legislation that some of our partners were working on that we were able to get behind and support in different ways," Solano recalled.

He added organizations like the farmworkers' rights group Pineros y Campesinos Unidos del Noroeste (PCUN) were instrumental in getting the bill passed.

Oregon Food Bank, a nonpartisan nonprofit, surveyed candidates for governor about food
insecurity. The responses are posted on its website and include a question about conditions for farmworkers.

Solano emphasized it will say a lot about the candidates.

"It's important to take a hard look at how elected officials or the folks who are running for office are speaking about, I think, a community that's so vital to the state and our communities who are at the beginning of our food chain," Solano contended.

The deadline to vote is Tuesday. Drop sites for ballots will be open until 8 p.m.

Small Montana meat processors are on the front lines against the large companies that control the industry. Funding from the American Rescue Plan is helping these processors compete.

$7.8 million were secured for 30 Montana businesses from the COVID relief legislation. That includes $450,000 for Hamilton Packing Company in the Bitterroot Valley.

Jason Schlange is owner of the business, which has been around since 1969.

"All of our stuff here," said Schlange, "it's a little bit older so we're going to be to get it up to snuff and do a little bit of expanding in the process so we have a little bit more room for cooler and freezer storage, which is important. And we'll be able to upgrade our retail facility, so have a little bit more to offer."

Sen. Jon Tester - D-MT - led efforts to secure funds for small meat processors in Montana.

He says consolidation among the country's four big meat processors - which own the vast majority of the market - is driving meat processors, ranchers and other small businesses to close.

Schlange said the big four - Cargill, Tyson Foods, JBS and National Beef Packing - can have an outsized impact on the market when they choose to.

"So if they kind of try and put their thumb on something," said Schlange, "I think these funds are going to help a lot of smaller meat processors like myself to be able to take care of their local communities better."

Schlange said supply-chain issues from the pandemic have highlighted the importance of local meat processors to be able to continue serving communities, even as meat was in short supply at larger stores.




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North Dakota ranchers are still assessing their losses from the spring snowstorms. They are being urged to tap into federal relief, and some are calling for better payouts.

Pat Becker, a rancher from Sioux County, said lost at least 50 calves and expects the number to increase. Becker pointed out he and his workers did their best to protect the herds, but the wind and snow proved to be overwhelming.

"That big group of cows, you know, you can't put 'em inside; we don't have facilities," Becker explained. "We got them bedded down, and then the wind switches, then they want to drift away. And that's when we lost quite a few calves."

The federal government's Livestock Indemnity Program can help recover some losses. Payments are equal to 75% of the average fair market value for the animals.

Becker noted while it softens the blow, a new payment structure means he's getting $175 for smaller calves, far below the going rate. Sen. Kevin Cramer, R-N.D., has requested an adjustment in payment levels.

The pain felt from a wet and snowy spring follows last year's severe drought. Becker, a member of the North Dakota Farmers Union, acknowledged the precipitation has helped, but the magnitude of events makes it harder to keep moving forward.

"Your plan is to build a ranch for your children," Becker remarked. "And it's just tough because, you know, since 2015, we've been lucky just to break even, you know, and it's really a struggle."

He suggested proper support for weather disasters would create more stability for independent producers. In turn, Becker added it can make farming more attractive to younger generations.

In the meantime, affected producers can connect with their Farm Service Agency office to see if their losses meet the aid threshold. Documentation must be reported within 30 days of a livestock loss.