Cargill plans to keep the approximately 250 full-time ground beef production jobs at the facility and make further investments to boost the plant's competitiveness.
The USDA says that the vast majority of states participating in the National School Lunch Program are ordering ground beef that does not contain lean finely textured beef.
The investors behind the proposed beef plant in Tama, Iowa, are hoping to have the facility up and running by June, though the plant's owners say that renovations are still ongoing and that more startup capital is needed.