** Shares of packaged meat producers Tyson Foods TSN.N and Smithfield Foods SFD.O fall nearly 3% in afternoon trading

** The Wall Street Journal reports the Trump administration is prepping a financial lifeline for smaller meatpackers amid shrinking cattle supplies

** U.S. Agriculture Department plans to pledge up to $500 million in payments for small- and medium-sized meatpacking companies, the report says, citing people close to the discussions

** Funding excludes the four largest U.S. beef processors, including Tyson Foods, JBS, Cargill, according to the report

** Beef prices have remained at record high at U.S. grocery stores, with the cattle herd at a multi-decade low

** TSN stock down about 3% this year, including today's session, SFD up ~8%