Cattle Producers Wrangle Multimillion-Dollar Incentive Package To Build $670 Million Texas Facility

A massive $670 million beef production plant tied to a stampede of economic benefits in the Texas Panhandle, and expected to be the nation's only facility of its kind owned by cattle producers, is closer to becoming a reality with a construction start on the horizon.

Amarillo, Texas-based Producer Owned Beef expects to begin the project spanning 1,108 acres on Jack Rabbit Road between Interstate 40 and State Highway 287 in Amarillo at the end of September, according to a work permit filed with the state. Amarillo is about five and a half hours northwest of Dallas.

The project is getting started months after it was originally expected to get underway earlier this year. The delay in the start of construction also pushed the project's completion date to the end of 2026 from its prior completion expected in 2025. 

The state permit shows that the work expected to start next month includes a 750,000-square-foot beef processing plant designed by Steele Architecture, estimated to cost at least $338.5 million.

Upon the facility's completion, it is expected to employ nearly 1,600 workers and slaughter at least 3,000 head of cattle a day in Amarillo, which is expected to bring more competition to U.S. beef production. Once operations begin, the plant's annual payroll is estimated to be $121 million.

The beef production plant is expected to have a significant economic impact in the Panhandle region, prompting state and local government entities to offer the company millions of dollars in incentives for the project. The plant is expected to have tax receipts from its first year of operation estimated at $75.5 million to the state and $53.3 million to the local economy, according to an economic impact report by the Perryman Group.

The tract for the new beef production plant is located along State Highway 287 in Amarillo, Texas. (Producer Owned Beef)

As part of its economic incentive offer, the Amarillo Economic Development Corp. gifted the company 610 acres to develop the facility. The economic development group also offered $11.1 million in incentives for the project. Meanwhile, the Texas Enterprise Fund, known as the state's deal-closing fund, offered Producer Owned Beef a grant totaling $12.2 million for the planned facility.

Texas, which ranks No. 1 in U.S. cattle feeding but No. 3 in U.S. cattle production, is well-suited for the new production site in the Panhandle, close to where the cattle are raised, executives at Producer Owned Beef said when the plant was announced last year.

The beef production facility is touted as helping to shore up the supply chain, protecting the nation's food security and increasing competition in a move that will ultimately benefit independent cattle producers. They are expected to receive a percentage of the wholesale beef prices for the cattle they supply and share in the plant's profits.