The Nebraska Department of Agriculture is accepting applications for grants through the Independent Processor Assistance Program.

Johnathan Hladik, policy director at the Center for Rural Affairs, said the agency is expected to distribute nearly $10 million from the American Rescue Plan Act to Nebraskans, in an effort to improve and expand the state's meat-processing capabilities.

"The program is designed to help our small and mid-sized meat lockers expand in the state," Hladik explained. "These are lockers that are typically located in the small towns, serving farmers in the area, and providing a product that consumers otherwise wouldn't be able to access."

Hladik pointed out the program will help family-scale meat processors play a significant role in increasing supply, severely limited during the pandemic, and should bring down prices for consumers.

Grants are available to hire and train staff, modify or expand facilities, purchase equipment and upgrade technology to improve logistics and e-commerce. More information about how to apply can be found online at CFRA.org. The deadline is August 12.

Ryan Drevo, owner of Blue River Meats in Crete, has already filed his application. With consumers increasingly curious about where the meat they serve to their families comes from, Drevo said smaller lockers are uniquely positioned to help local farmers get a better price for livestock, and boost rural economies.

"Right now we have five employees," Drevo stated. "With this grant money, we will be able to produce another five to 10 more full-time positions. And these are good, high-paying, quality jobs, which is going to directly stimulate the economy."

Some industry groups have criticized the program as big government picking winners and losers, but Hladik noted grant money can only be spent in response to the COVID public health emergency. He added to qualify, processors must operate as either a USDA-Food Safety and Inspection Service facility or a federally regulated custom-exempt slaughter and processing facility, while also complying with federal regulations.

"And we know our big processors got millions and millions and millions of federal dollars designed to help respond to that same emergency," Hladik recounted. "This is an opportunity for the small processors that have been overlooked, that play an essential role in our food chain, and could play an even bigger role in our food chain."

By Claire Carlson for The Daily Yonder.
Broadcast version by Eric Tegethoff for Washington News Service for the Public News Service/Daily Yonder Collaboration

The Lower Yakima Valley in Washington state has been home to large-scale animal agriculture for decades, but in 2008 when one dairy operation tried moving onto the Yakama Indian Reservation, the community balked at the proposition.

“The dairies at that time were very bad neighbors,” said Jean Mendoza, a resident of the Yakama Reservation. The community wanted to avoid the issues they’d heard about in Sunnyside, a small town about 50 miles east of the Yakama Reservation. “There was one [Sunnyside] family that had built an outdoor swimming pool for their grandchildren to enjoy, and one of the dairies came in and built a manure lagoon right next to the swimming pool,” she said. The smell from the lagoon made it impossible to enjoy their backyard.

The lagoons, huge pits of animal waste mixed with water, were one of the reasons Mendoza started organizing against the establishment of concentrated animal feedlots (CAFOs) near her home. She later became the executive director of the nonprofit Friends of Toppenish Creek, which advocates for improved oversight of industrial agriculture. 

Discharge from these lagoons into groundwater caused nitrate levels to skyrocket in the drinking water of small towns in the Lower Yakima Valley, where many residents get their water from private wells. Serious health effects like cancer and blue baby syndrome – a life-threatening condition that causes low oxygen levels in infants’ blood – can occur when nitrate levels exceed 10 milligrams per liter, the maximum contaminant level set by the U.S. Environmental Protection Agency (EPA).

Despite the health risks, regulating this pollution isn’t easy. Loopholes within drinking water laws and the agriculture lobby’s influence in Congress have prevented substantive policy reform to address the issue, according to food safety experts. 

“That lobby has consistently asked for and gotten policies that favor the large and the higher tech and the consolidation – and therefore corporate control – of agriculture,” said Amy van Saun, a senior attorney for the Center for Food Safety. A 2024 report from the Union for Concerned Scientists showed big agribusiness and other food interest groups spent $523 million on farm bill lobbying between 2019 and 2023 – more than what the lobbies for the oil and gas industry and defense sector spent during that time. 

Agriculture has become one of the most consolidated industries in the country. Across the board, farms have been merged into just a few big companies that control most food sectors.

The dairy industry is no stranger to this: Between 2002 and 2019 the number of licensed dairy herds in the U.S. dropped by half, but milk production increased, according to USDA data. This suggests that small farms are disappearing in place of concentrated animal feedlots operated by large corporations like Land o’ Lakes and Dairy Farmers of America. 

As the number of animals stuffed onto corporate farms increases, so has the amount of waste. And that waste is kept in manure lagoons that are built to leak, according to Adam Voskuil, a staff attorney for Midwest Environmental Advocates. 

“Regardless of whether a manure lagoon is earthen-lined or clay-lined or concrete-lined, there is some acceptable amount of discharge directly to the groundwater, to the aquifer,” Voskuil said. 

As dairy operations have become more consolidated in the Lower Yakima Valley, it’s made it harder for grassroots organizers like Mendoza to advocate for drinking water regulation. “It removes decision-making from the ground level and sends it up the corporate ladder and makes it harder for neighbors, makes it harder for Friends of Toppenish Creek [to demand change],” she said. 

While Mendoza’s organization successfully stopped the 2008 dairy operation from moving onto the Yakama Reservation, they’ve had their work cut out for them because of seepage from other manure lagoons. In June of 2024, the EPA sued three of the area’s dairy operations for failing to comply with a 2013 legal agreement that they reduce nitrate leakage and protect the drinking water of nearby residents.

But it’s difficult to implement effective regulation because water pollution is technically legal under two major laws: the Clean Water Act and the Safe Drinking Water Act.

The Clean Water Act is the main apparatus used to protect the United States’ surface water. While its purpose is to prohibit the discharge of pollutants, the EPA’s National Pollutant Discharge Elimination System issues permits that allow exceptions to this rule. Most activities associated with farming, ranching, and forestry can be exempted from the Clean Water Act if the operator obtains a permit to pollute. 

The law directly regulates “point sources” of pollution, which is when there is a clear source of waste discharge like from a pipe, well, or even a manure lagoon from a concentrated animal feeding operation.

But for “nonpoint sources” of pollution, the law relies on voluntary efforts to control pollutants from various sources that accumulate through runoff. A primary cause of these nonpoint sources is runoff from nitrogen fertilizer on cropland. 

This voluntary approach means the EPA and states don’t have the authority to require that landowners reduce runoff, according to a report from the Environmental Integrity Project. This leaves the work to advocacy organizations. 

“It seems like it has fallen to environmental and clean water and agricultural advocacy organizations to raise awareness and make sure people are protected,” said Leigh Currie, the chief legal officer for the Minnesota Center for Environmental Advocacy. 

The Well Issue

In eastern Oregon’s Morrow and Umatilla counties, more than 400 households have nitrate levels higher than 10 milligrams per liter, the maximum amount deemed safe by the EPA. All of these houses rely on well water, which is one of the least regulated sources of drinking water in the country. 

The counties’ pollution comes from food processing companies in the Port of Morrow. The companies produce nitrate-rich wastewater and funnel it into open-air irrigation ditches that water the area’s farmland. The water is overapplied on these farms and the excess leaches into the groundwater, which is what many local residents rely on for drinking. 

Over the 30 years the state of Oregon has known about this problem, very little has been done to address it. That’s because no one wants to “own the issue,” according to Nella Mae Parks, a farmer and organizer for the nonprofit Oregon Rural Action. 

“The state doesn’t want it, the [Port of Morrow] doesn’t want it, and the county doesn’t want it, because it’s gonna be really expensive,” she said in a 2023 interview with the Daily Yonder. 

The Clean Drinking Water Act regulates “navigable waters,” which does not include groundwater. This leaves groundwater regulation to the Safe Drinking Water Act, which guarantees protections for municipalities that are on public drinking water systems. 

But the law leaves out protections for private wells that support fewer than 25 individuals. About 15% of the U.S. population relies on well water, and the vast majority of them live in rural areas. 

This means the well owner has to take on the cost of monitoring and treating their water if they find it’s being polluted, a cost that many people can’t afford. A nitrate test costs between $35 and $60, and treating the water requires a reverse osmosis system, which is a filtration device that forces water through a membrane that removes nitrate. Depending on the system, the price can range from a few hundred dollars to a few thousand. 

Some counties will pay for these tests and filters, but this isn’t the case in every affected community. 

For example, in Wisconsin – the dairy capital of the U.S. – rural well owners often choose not to test their wells for nitrate. “That’s because if it comes back that it’s testing high for nitrates, it may not be financially feasible for them to rehabilitate or remediate or dig a new well,” said Voskuil from Midwest Environmental Advocates. 

The state’s well compensation grant program will only provide financial assistance to well owners whose water tests at or more than 40 parts per million of nitrate. That’s four times the amount the EPA says is safe to drink.

A Need for Stronger Regulation

Food safety experts say solving America’s nitrate pollution problem will require stronger regulation of the biggest players in the agriculture industry. 

“This industry has been able to externalize so much of their costs… so that it’s an artificially cheap product for the consumer,” van Saun from the Center for Food Safety said. 

The federal government provides farmers subsidies to protect them from fluctuating revenue year-by-year, but data from the nonpartisan Environmental Working Group shows that 78% of subsidies were given to the largest 10% of farm operations between 1995 and 2021. This means small and mid-size farmers received the fewest benefits, making it harder to stay afloat.

Some bills have been proposed to address the squeeze of big agriculture, but there hasn’t been substantial progress made on the issue. New Jersey Senator Cory Booker’s Farm System Reform Act of 2023 proposed a moratorium on CAFOs, expanded country-of-origin labeling, and increased competition and transparency in livestock, poultry, and meat markets. The bill was first introduced in 2019 and reintroduced in 2021 and 2023, but all three times, it languished in committee. 

Most of the current reform is coming from more local efforts, like the community organizing in the Lower Yakima Valley that led to the 2024 lawsuit against three dairy farms. 

While these local efforts are important, van Saun said they have to occur in combination with federal regulations to effectively address drinking water contamination. “It’s the people who are the least well off in rural areas, and especially communities of color in rural areas, who are the ones paying the biggest price for this [pollution],” van Saun said.


Claire Carlson wrote this article for The Daily Yonder.


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October is National Farm to School Month, and New York schools are using grant funding to participate.

School districts statewide have received funding from the U.S. Department of Agriculture's Local Food for Schools program. These grants allow schools to buy food directly from local or regional farmers, so kids have nutritious meals.

Jenny Lester Moffitt, undersecretary for marketing and regulatory programs at the USDA, said this program allows farmers to get more of the "food dollar" back by selling their wares directly.

"So traditionally, a farmer gives about 14 cents of every food dollar back to their farming operation," she said. "But when farmers can sell locally, direct to their community, selling direct to their schools, more of the food dollar comes back to their farm."

She said it also provides them with a reliable and stable place to sell their products.

This year, New York school districts received more than $700,000 in grant funding from the Patrick Leahy Farm to School program. Lester Moffitt noted that a future goal is to expand the program.

This week, the USDA announced an additional $500 million for the grants, with another $200 million for child-care facilities to purchase directly from farms.

Feedback about the program has been positive from farmers and schools. From speaking with food producers, Lester Moffitt said it's been a safety net for them, especially those who have lost other local or international markets. Despite its benefits, she said, there are some challenges for farmers.

"There are barriers, especially if you're a small producer; if you're a producer that has one product to be able to sell directly to schools in the neighborhood and into the region," she said. "Farmers are often very busy farming and harvesting, and don't have a lot of time to be able to make all those different phone calls and deliver products."

Funds are also provided for farmers and schools to overcome these barriers. One solution is an aggregation system, where farmers can bring their products to one location to be distributed to different schools.

A new report looking at agribusiness consolidation found decades of mergers have reduced competition, leading to higher costs for farmers and consumers in Maryland and nationwide.

The report, titled "Kings Over the Necessaries of Life," showed a smaller number of large companies are using their market power to dominate nearly all sectors of the food system from inputs such as seeds and pesticides all the way to grocers.

Basel Musharbash, principal attorney for the Antimonopoly Counsel and the report's author, said the nonenforcement of the nation's antimonopoly laws since the 1980s has taken a toll.

"We found that either a single firm or a small, tightly coordinated group of firms have amassed monopoly power," Musharbash explained. "The power to control prices or exclude competitors from a given market, in nearly every major industry that manufactures and sells farm inputs, that buys or processes farm crops, or that distributes food to the public."

Among other abuses, the report found companies have engineered shortages to keep prices high, as in the egg and fertilizer sectors. Despite rising prices for beef, consolidation has reduced the share of the consumer's dollar going to cattle farmers, which fell from 70% in the 1970s to 30% today.

The fertilizer sector has been gradually consolidated over decades, and the report showed three large firms are now in control. With one dominating the market for each of the three primary components of fertilizer: nitrogen, phosphate and potassium. The so-called Big Three are able to control prices in their respective markets but are also keeping competition out by controlling access to both the raw materials supply and the specialized distributors that sell fertilizer around the country.

The report found since the 1990s, the Big Three have raised fertilizer prices, cut output and reduced the quality and selection of fertilizer available in the U.S. Fertilizer prices increased 60% in 2021 and 132% the next year. Companies attributed the increases to supply-chain problems, but Musharbash found their own financial reports proved otherwise. He argued it amounts to extraction from farmers and ultimately, consumers.

"Because of their power, they've been able to reap Apple-style profits on products that haven't been improved materially since the 1960s," Musharbash asserted. "It's that sort of extraction that has been facilitated by the monopolization that we've seen across the agriculture sector."

The report includes an Agriculture Consolidation Data Hub where different sectors are outlined. Consolidation and its effects are tracked in agricultural finance, crop insurance, farm machinery, the grain and oilseed sector, along with fruits, vegetables, livestock, poultry, seed and fertilizer. The seed industry is now dominated by four large firms and has seen prices rise faster over the past 20 years than any other farm input.

Musharbash argued the nation needs to continue to expand recent efforts to enforce antitrust laws.

"It doesn't have to be this way," Musharbash contended. "These firms are smart and powerful. They've executed strategies over decades, the U.S. government allowed it because we made policy decisions not to enforce the antitrust laws to the fullest extent. We can take action to fix that."

He added after a period of neglect, the agriculture sector was also highly concentrated by the 1930s. But the report outlined how over a decade the Antitrust Division of the Justice Department and the Federal Trade Commission brought thousands of cases against cartel actors in the agricultural economy, eventually restoring competitive markets.


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