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MISSOURI                                                                                      The Midwest Cattleman · April 1, 2021 · P12
      continued from page 11
                                         tion and cost them some busi-
      swer any questions custom- ness, Stubblefield has been
      ers have.  “We’re really good  pleased with the speed of in-
      about walking customers  ternal growth. “Things have
      through the cut sheet. I think  been better than I thought,
      we have a really strong team  aside from the inspection,”
      with  the way the investors  she said. “[The grant] helped
      are setup,” she said.              and we expanded in ways I
         When customers pickup,  didn’t expect yet.”
      they can back up to a building        Once approved, Oak Hill
      and have their beef loaded up  Meats will be the third USDA
      for them. “You don’t have to  plant in their area and fifth
      go into the processing facility  processor to offer custom ser-
      at all,” Stubblefield said. “You  vices.  “These facilities are
      pay there and everything, so  backed up until next year.
      you don’t have to wait in line  When  it’s all settled, there
      at the counter.  And on the  will probably be some compe-
      invoice you get back, it says  tition. But there’s a good dis-
      exactly how many packages  tance between each facility,”  likely to increase. Like Stub- just have not been able to tap
      of each cut you received and  she said.                               blefield, Hertzog agrees that  into it, because we've had no-
      the exact weight of the total         As more plants crop up  there  is  plenty  of  room  for  where  to  go. We're  trying  to
      amount.”                           across Missouri and nearby  individuals to market their  reduce that complexity.”
         While the delayed certifi- states, opportunities for pri- product. “The beef market is
      cation has brought frustra- vate farm labels are just as  so big,”  he said.  “Producers

                                    TRICKLE EFFECT FROM PACKING PLANT EXPANSIONS
                                                       Contributing writers Austin Black and Brenda Black
         The Missouri Meat and  2027. This will allow proces- Abundant feed supply, ample                        Other benefits would like-
      Poultry Processing Grant  sors the opportunity to con- water sources and local mar- ly trickle throughout various
      Program was created  in re- tinue construction and ex- kets provide an ideal envi- livestock segments. For ex-
      sponse to processing de- pansion, resulting in more  ronment for producers to  ample, should cow-calf pro-
      mands highlighted by the  jobs and increased beef pro- finish their own cattle or pro- ducers elect to retain calves
      COVID-19  pandemic. This  cessing in the state.                       vide the service as a separate  to feed and finish, then those
      program appropriates $20              Though the boon in pack- enterprise.                              producers can track finishing
      million from the CARES  ing plant development is                        Water alone is a critical  performance and be better
      Act to support new and ex- happening currently, results  and attractive component  informed on cow-calf man-
      isting  meat  and  processing  from a study conducted by  since the Ogallala aquifer  agement decisions. Knowing
      facilities for renovations, ex- the University of Missouri in  depletion continues to im- which genetics gain efficient-
      pansion and construction.  2016 may well have fanned  pact farmland in eight states  ly or grade and yield well can
      According to the Missouri  the flame before the pandem- located through the Great  play critical roles in future
      Department  of Agriculture  ic poured on added fuel. The  Plains.  According to a U.S.  breeding decisions.
      press  release,  “The  grant is  University of Missouri  Val- Geological Service (USGS)                    The UMC 2016 study adds
      based on a three-tiered sys- ue-Added Beef Study stated  report, within the next 50  a lengthy list of addition-
      tem intended to incentivize  that the Missouri meat pro- years, the Ogallala aquifer  al positives.  “If more calves
      facilities to increase livestock  cessing industry had become  is expected to be depleted by  were backgrounded and/or
      or poultry slaughter and pro- increasingly smaller, creat- nearly 70 percent. In the long  finished within Missouri, the
      cessing, and to become an in- ing challenges for livestock  term, it is reasonable to ex- Missouri economy would be
      spected or exempted facility  producers who need local  pect that cattle feeding will  affected. New industry sales
      in the near term.”                 processors to slaughter and  shift  to  areas  that  have  ad- would occur from retaining
         Grants were awarded last  further process animals that  equate water resources and  animal ownership past the
      year through an application  they raise. State-inspected  the infrastructure necessary  cow-calf stage. Local vendors
      process and eligible for reim- and custom-exempt slaugh- to support it. In Missouri, a  would provide goods and ser-
      bursing workforce assistance,  ter plants made up the ma- limited amount of groundwa- vices  to these cattle feeding
      equipment, capital improve- jority of Missouri slaughter  ter  is  used  by  the  livestock  operations. Missouri crop
      ments and qualified expens- plants.                                   sector, proving the state to be  farmers would have addition-
      es incurred from March 1 to           According to the Missouri  a viable alternative.                  al markets for selling feeds
      Nov 15, 2020. One of such ex- Association of Meat Proces-                    Given the variable cli- (corn, hay, etc.), and local
      penses was the cost of attain- sors, there are  more than  mate in the state, many pro- biofuel plants could provide
      ing USDA inspection approv- 115 meat packing plants  ducers may need to consider  co-products for feeding beef
      al or increasing inspections.  throughout the state. Most  covered  feeding  facilities  to  calves. Additionally, the beef
      Facilities employing over 200  of these are custom exempt  manage pen conditions and  industry would create jobs
      employees or receiving cur- or state inspected. Producers  cattle comfort. However, ac- and provide labor income to
      rent  funding  and  insurance  can visit fsis.usda.gov to find  cess to more local plants may  spend in local economies.”
      payments were not eligible.        a list of local plants.            counterbalance the risks and         Packing plants may just
         To further encourage plant         As this list continues to  costs for producers to feed in  be the beginning for beef pro-
      development, the Meat Pro- grow, there is increased op- Missouri, reducing shipping  ducer marketing opportuni-
      cessing Facility Investment  portunity not only for pro- overhead                  and     increasing ties in Missouri.
      Tax Credit was extended  cessing meat, but for fin- marketing channels for them
      from Dec 31, 2021 to Dec 31,  ishing cattle in Missouri.  to develop niche markets.
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