JEFFERSON CITY — A beef processing facility planned for a site in Warren County could receive more than $36 million in state and local subsidies.
According to the Missouri Department of Economic Development, Wisconsin-based American Foods Group could receive up to $20.4 million in state incentives over five years through the Missouri Works Program.
In addition, the company also will get $2 million in training assistance from Missouri One Start, a division of the department.
“Missouri One Start assists eligible businesses of all sizes with their recruitment and training needs,” said agency spokeswoman Peggy Smith.
The Missouri Development Finance Board also has signed off on a plan to issue $14.6 million in bonds to assist the project.
People are also reading…
Details of the financial agreement between AFG and the state were not released when Gov. Mike Parson, a cattle farmer, announced Tuesday that Missouri had been selected as the company’s latest factory after a multi-state search.
The subsidies come as the plant is expected to employ more than 1,300 people on a site between Foristell and Wright City, located south of Interstate 70. The economic impact is projected to be $1 billion.
The company, which has animal processing facilities in seven states, is expected to invest $450 million in the plant.
Warren County also is working on a package that includes an expansion of the wastewater processing system, said county economic development director Steve Etcher.
Other local infrastructure needs are still being developed.
“Some of that still needs to be designed yet,” Etcher said.
Among the potential projects is a rebuilt railroad crossing near the planned facility, as well as additional lanes on nearby local roads to accommodate an increase in traffic.
The subsidies are the second major infusion of public funds into a private business in the immediate area in recent years.
In 2019, the state agreed to provide up to $5 million per year in tax credits over a 10-year period to General Motors for an expansion of its truck and van assembly plant in Wentzville, which is about 10 miles away from the proposed beef facility.
The $50 million in aid will be paid if GM invests at least $750 million in the factory.
, the Missouri Cattlemen’s Association said the AFG beef operation will process 2,400 cattle per day once fully operational by the end of 2024.
MCA Executive Vice President Mike Deering said the 70-plus-year-old, family-owned company has a long history in the beef business and is very familiar with Missouri’s livestock industry.
“This family knows the quality of cattle produced in this state by more than 50,000 farm and ranch families,” Deering said. “AFG has long purchased cattle in this state for their other processing plants, and having a company like this in Missouri will undoubtedly help producers here and in surrounding states.”
The push to bring AFG to Missouri began earlier this year with the Greater Warren County Economic Development Council, the Missouri Partnership, Greater ѿý Inc. and Warren County working together to create the incentive package for the company.
