While dishing out more corporate welfare to friendly companies Wednesday, the South Dakota Economic Development Finance Authority delayed plans to help small meatpacking projects:
Additionally, the board decided it would pause plans to commission a feasibility study assessing the viability of small meatpacking projects in the state. The department planned to hire an independent consultant for the study, focusing on areas such as available cattle supply, sales and marketing, the economics of processing, and workforce availability. The reason for halting the study was that only one entity applied to conduct the study so far [Joshua Haiar, “State Board Approves $25 Million Bond for Large Dairy,” South Dakota Searchlight, 2023.10.11].
The state’s delay in studying the small-packer industry won’t leave those little guys out in the cold. Small packers are getting lots of cash from Uncle Sam:
In 2021, Gov. Kristi Noem announced $5 million in federal COVID-19 relief funds would be allocated to South Dakota meat processing. The state has paid $4.98 million in grants to 95 projects since the announcement. Grants ranged from about $9,500 to $200,000.
About $1.64 million went to 12 new facilities spread across the state.
The remaining $3.34 million went to 83 existing facilities, like Dakota Butcher, which received about $39,000 for a freezer expansion in Clark and about $43,000 for trucks and equipment in Watertown.
The federal government has also issued grants.
The American Rescue Plan Act of 2021 allocated $1 billion to help expand the capacity of small and mid-sized meat and poultry processors around the nation, through several programs. About $27 million has been awarded to South Dakota so far.
The bipartisan Butcher Block Act – which Rep. Dusty Johnson, R-South Dakota, sponsored – was implemented as part of the American Rescue Plan Act’s $1 billion allocation. The act proposed grants for new and expanding operations [Joshua Haiar, “Making Meat Local: $32 Million Flows to South Dakota Processors Since ’21,” South Dakota Searchlight, 2023.09.29].
Even ag lobbyist Troy Hadrick, who was a good God-fearing conservative last I checked, is willing to wade through all the federal strings to get those socialist federal grants:
Troy Hadrick is a Faulkton-area rancher who wants to open a small processing plant by 2025. He was awarded $2.2 million from the federal program.
Hadrick has found demand for his beef among the restaurant community in Sioux Falls and is already supplying some meat to Vanguard Hospitality.
“They were looking for a quality, local product,” Hadrick said.
His ranch paid for a feasibility study, which found that a $13.5 million, 25-cattle-per-day facility would be ideal. Then came the federal grant application process – which he said was over 400 pages.
“About 200 of which were to ensure minimal impact on the environment,” Hadrick said [Haiar, 2023.09.29].
If South Dakota can’t find enough bidders for a small-packer feasibility study, maybe they could convince Hadrick to lend them the feasibility study he did on his own dime… and which those good federal handouts have surely paid for in spades.
Bacon is good. It is very good.
A better idea would be for the rancher to start small with his and maybe others’ investment money, like how capitalism is supposed to work, instead of taking govt handouts. Bunch of crap.
Mr. sx123 is right about the ARP being a wasteful bunch of crap. BAH on the ARP.
Govt money for the sick, needy, and hungry? YES, and hopefully from private donations.
Free govt money to start a new businesses? NO, NO, NO. Unfair advantage and competition forceably paid for by tax payers.
Eminent domain for private companies is wrong for similar reasons. Yes, it’s morally wrong. It’s called ‘stealiing’, even if compensated for (i.e. At gunpoint I offer you $1 for your Rolex.)
The Other Side of the Biscuit:
Government money is well spent when it is used to fund new businesses that the USA desperately needs for several reasons:
1. Economic growth: Investing in new businesses stimulates economic growth by creating jobs, expanding industries, and fostering innovation. This leads to increased productivity and can contribute to the overall improvement of the economy.
2. Technological advancements: Government funding can support research and development in emerging technologies, promoting innovation and competitiveness. This helps the USA stay at the forefront of global advancements and strengthens its position in fast-growing sectors.
3. Addressing market failures: Sometimes, private investors may be hesitant to invest in certain sectors due to perceived risks or a lack of immediate profitability. Government funding can help bridge this gap by providing the necessary capital to stimulate investment in areas that are critical for national development and strategic growth.
4. Filling gaps in financing: New businesses often encounter difficulties in securing traditional financing, especially during their early stages. Government funding, such as grants, loans, or tax incentives, can provide much-needed support to promising ventures that may otherwise struggle to obtain capital.
5. Fostering inclusivity: Government funding can prioritize entrepreneurship in underserved communities or sectors, supporting the growth of diverse businesses and promoting social and economic equity. This can contribute to job creation, reduce inequality, and ensure that opportunities are accessible to a broader range of individuals.
6. Long-term benefits: Investments in new businesses can have long-term benefits, as successful ventures have the potential to generate continuous growth, create sustainable jobs, and contribute to tax revenues. Additionally, they can attract further private investment and contribute positively to the overall business ecosystem.
It is important, however, that government funding for new businesses is carried out effectively and efficiently, with proper due diligence, transparent processes, and ongoing evaluation to ensure that taxpayer money is used responsibly and that the intended benefits are realized.
AI GENERATED
PROMPT ENGINEERED BY P. AITCH
Do you ever notice when “steady Joe”has another war on his watch, CH posted articles nobody gives a crap about?
Lcj your right you just keep buying your meat from the store. Any idea where it came from no one cares right. I think it’s a great idea and I wish them the best. It will pay dividends to that community! A lot of small farmer feeders for a big area can benefit from this ! Remember ag dollars turn over seven times before they leave the community…
Small meat packers are (perhaps) as deserving of a taxpayer boost as any other legitimate enterprise. The hypocrisy lies at the crossroads of special interests and federal dollars. On a national scale, small “bootstrap” entrepreneurs need “big government” to jumpstart (facilitate) their schemes. Remember the Homestead Act? Or the Internet? No man/woman is an island, nobody does it alone. Yet the Governor’s Klan (and “free market” disciples) believe they do – because “free market” capitalists ALWAYS make sure they’re on the receiving end of taxpayer investments.
P., I am growing weary of these AI generated power point presentations.
I found your comments more interesting when you originated them yourself.
This is meant as more of a compliment than a criticism.
@Edwin – Thanks for the compliment. I think your curiosity is what’s weary. If you don’t like what I present then I’ll block you from seeing them.
Keep it fresh, Edwin.
Happy Bird Day, P!
Mr. Lansing may think he can block Mr. Arndt from seeing his weak generative AI designed to power a micro-targeted disinformation campaign using Mr. He’s blogging place, but he cannot keep grudznAIck out of his own brain. All his goats R belong to grudznick.
“Yes, it’s morally wrong. It’s called ‘stealiing’, even if compensated for (i.e. At gunpoint I offer you $1 for your Rolex.)”
It has to be ‘just compensation’ to be legal, so you probably need to promise not to pull the trigger and kill the only witness to the armed robbery.
The mistake in all this is not with trying to build back the small meatpackers. It is with allowing the big meatpackers to so dominate the market that it makes US food insecure.
Any government has to do what it can to provide a stable food supply. Without food security you get economic instability, health instability, civic instability and government instability. One only need to think about the last 2-3 years when various supply chain issues, human health (covid) shutdowns and animal health issues caused massive spikes in prices that put some meat products out of the economic reach of many folks.
The Smithfield shutdown in Sioux Falls put 5% of the US pork production out of business. With partial shutdowns elsewhere, there was a real problem with providing pork at a price that some folks could afford, and when people began shifting to chicken, that price went up, too. Of course, you heard the whining from Republicans who, of course, didn’t much care if the poor couldn’t eat, but thought it made a great political talking point. The thing is, food security and the instability it causes is a big motivator for immigration to our southern border, just as it was in the movement of Okies and others to California and other places in the Dust Bowl days.
Providing some help for the small meatpacker is a kind of socialism, and that’s good socialism. For the reasons stated above, food policy is key to a secure and stable society. It has to have some direction and subsidy from government. We can argue about that policy and how much direction and subsidy government should provide, but, given the top-heaviness of the meatpacking industry leading to proven instability in the last few years, we should be bringing along the small meatpackers.
Don’t look at the Sun, Lar! Don’t do it!
“Mama always told me not to look into the eyes of the sun, but Mama, that’s where the fun is.” Manfred Mann
New born eyes always cry with pain
At the first look at the mornin’ sun
Fool if you think it’s over
It’s just begun
fool (if you think its over) Chris Rea
Now the Governor hs another 5 million dollars she can squirrel away for another rainy day or whatever fantasy she is engaging in at the moment. The federal audit of South Dakota’s Covid 19 relief fund will be a scary document.
Agree with Donald and Arlo both. This is why we need to reinstate M cool now!!!!