Today, at the National Farmers Union Annual Convention, U.S. Department of Agriculture Secretary Tom Vilsack announced the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means.
Vilsack also announced that the USDA is awarding $9.5 million to 42 projects through the Local Meat Capacity grant program to expand processing options for the meat and poultry industry and to take new actions to ensure transparency and a fair and competitive market in the U.S. seed industry.
“Today’s announcement is a vital step toward consumer protection and builds on the Biden-Harris Administration’s work to bolster trust and fairness in the marketplace where smaller processors can compete,” Vilsack said. “This final rule will ensure that when consumers see ‘Product of USA, ’ they can trust the label’s authenticity and know that every step involved, from birth to processing, was done here in America.”
“In addition, the Local Meat Capacity grants are addressing critical processing infrastructure needs for local and regional livestock and poultry producers, ensuring their products get to market efficiently and cost-effectively, which supports local economies, new jobs, and more choices for consumers,” Vilsack added. “USDA is also committed to boosting the farmer’s voice in our seed patent system and enforcing the disclosure laws on the books as we deliver more and better choices for farmers.”
What does the final rule do?
USDA’s final “Product of USA” rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry, and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market and help ensure that the information consumers receive about where their food comes from is truthful.
There is broad support for the USDA’s final “Product of USA” rule, including thousands of stakeholder comments and data from a nationwide consumer survey.
“The latest Census of Agriculture confirmed that our country is losing an alarming number of farmers and ranchers — the ‘Product of U.S.A.’ labeling rule is a critical step for supporting those we still have and creating opportunities for a new generation,” said Farm Action co-founder, president, and farmer Angela Huffman.
Under the final rule, the “Product of USA” or “Made in the USA” label claim will continue to be voluntary. It will also remain eligible for generic label approval, meaning it would not need to be pre-approved by the USDA’s Food Safety and Inspection Service before it can be used on regulated products. Still, it would require the establishment to maintain documentation on file to support the claim.
The final rule also allows using other voluntary claims of U.S. origin on meat, poultry, and egg products sold in the marketplace. These claims will need to include a description of the package of the preparation and processing steps that occurred in the United States upon which the claim was made.
The USDA has also published updated labeling guidance on voluntary U.S.-origin label claims, which provides examples of claims and the types of documentation that establishments may maintain to support their use. The guidance will be open for public comment 60 days after it is published in the Federal Register. Public comments can be submitted here.
Establishments voluntarily using a claim subject to the final rule must comply with the new regulatory requirements by January 1, 2026, and are encouraged to do so as soon as practicable after publishing this final rule.
Meat Capacity Grant Programs
The USDA also awarded $9.5 million to 42 projects through the Local Meat Capacity grant program. This initial set of awards through Local MCap is for Simplified Equipment Only projects.
In April 2023, USDA announced up to $75 million available for Local MCap to fund innovative projects to build resilience in the meat and poultry supply chain by providing producers with more local processing options and strengthening their market potential.
This is part of a larger $1 billion commitment to expand independent meat and poultry processing capacity, give farmers additional, local options to obtain fairer prices for the animals they raise and give consumers more options in the marketplace. The Local MCap grant program is targeted to support meat and poultry processors with smaller-scale projects, to increase processing availability and variety for local and regional livestock producers. The Agricultural Marketing Service administers the program with funding from President Joe Biden’s American Rescue Plan.
AMS has cooperated with the New Hampshire Community Loan Fund to execute and administer Local MCap awards. NHCLF is responsible for awarding grants and administering grant funds.
The USDA will announce additional awards for Equipment and Processing Expansion Local MCap grants later.
