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USDA boosts state meat processing reimbursement

The USDA will increase its reimbursement for meat and poultry inspection programs this year and the CEO of the National Association of State Departments of Agriculture says it’s appreciated.

Ted McKinney tells Brownfield “what this provides is the funding that gets USDA’s Food Safety and Inspection Service up to the 50 percent level, that’s been the long-standing commitment.”

When the USDA started investing in the expansion of local meat processing during COVID, McKinney says the agency reimbursed states up to 50 percent of eligible inspection expenses. But funding for those investments haven’t stayed current.

“This was no one’s fault, it just happened that way,” he says. “That’s why we’ve been working on this issue for more than one year with both administrations. People are happy and they want to expand more, but clearly, there has to be an inspector on those lines.”

Missouri is one of several states whose meat and poultry processing industry has been at risk of becoming stagnant due to a lack of funding.

As Brownfield previously reported, the Missouri Ag Department had to find ways to offset unexpected inspection costs the USDA was reimbursing. The ag department went to the state legislature to get reimbursed, but has struggled to secure the funding it needs to invest in more state meat inspectors.

The USDA has increased funding for state meat inspections $14.5 million for the current fiscal year. McKinney says the additional increase in funding is for one year only, but Ag Secretary Brooke Rollins says there’s funding included in the 2026 Fiscal Year budget to reimburse states.

In a statement, Senate Ag Appropriations Subcommittee Chairman John Hoeven from North Dakota says he supports making sure that FSIS has the resources it needs to keep our meat and poultry supply safe and will continue working with USDA to analyze their budget needs as the FY26 process continues.