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Farmers/PPP Loan payback Won t Be Taxed
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March 31, 2021 a Minnesota Judge s order struck down a pilot project begun years ago that allowed faster line speeds at many hog processing plants. Two of those plants are in Minnesota. The result of this ruling is that pork processing capacity will decrease about 2.5 percent Nation Wide. That does not seem like a lot, but we are already at about 100 percent capacity or will be this fall when hog numbers tend to increase.
The USDA began a pilot program during the Clinton Administration allowing pork processing plants to increase line speed from 1,106 up to 1,450 hogs per hour. Under USDA rules USDA Inspectors had to inspect or observe every carcass so I believe that is why there were limits on line speed. However, pork processing plants in the pilot project developed more advanced testing methods that allowed for faster line speeds.