HomeAg NewsContinued Fallout in Upper Midwest from Poultry Company Bankruptcy

Continued Fallout in Upper Midwest from Poultry Company Bankruptcy

(Charles City, IA) — Farmers and thousands of animals are left in the dark still as the fallout continues from a closure of a Minnesota poultry company’s processing plant in Northern Iowa.

It was reported last week that Pure Prairie Poultry closed its processing plant in Charles City, IA and stopped paying for feed for more than a million chickens in the three states. According to court documents, the company filed for Chapter 11 bankruptcy back in September. A judge dismissed the company’s request which led to Pure Prairie deciding to stop paying for feed for the chickens it owned, being raised by farmers across the three states.

Both the Minnesota Department of Agriculture and the Iowa Department of Agriculture have been able to step in and provide feed and care for birds located in their respective states. The total was six farms in Minnesota and 14 farms in the state of Iowa. Both Minnesota and Iowa have state level procedures in place for the state government to step in during situations like this. However, Wisconsin does not have such protections.

According to the Wisconsin Department of Agriculture, Trade and Consumer Protection, animal welfare laws are enforced at the local level under Chapter 951 and by locally appointed humane officers under Chapter 173. The only time the state can step in is when it is related to an animal disease outbreak. With the timely nature of this situation and little direction on how to safely handle their animals, many growers in Wisconsin have been advertising on social media that they are giving away chickens for free.

Wisconsin Farmers Union, in a blog article, called for agencies such as DATCP and USDA to step in and help. “We encourage efforts to assist with the disposal of lost birds, provide processing assistance, and offer financial aid to these growers through these agencies. These agencies must step in and support Wisconsin poultry growers who have been left in a difficult position due to the mismanagement of the Pure Prairie. Local efforts by neighbors and community members are also underway to raise funds and connect these growers with local poultry processors.”

In a statement to our team, a USDA spokesperson issued the following:

“USDA has been made aware of an emerging situation involving a number of growers in Iowa, Minnesota, and Wisconsin under contract with Pure Prairie Poultry. We are in close contact with the departments of agriculture from each respective state to provide support for growers who relied on this market under state indemnity programs, or through USDA’s statutorily mandated poultry trust established by the Packers and Stockyards Act. We encourage producers to reach out to their respective state department of agriculture to make use of these resources, if available, or otherwise file a written notice of a claim through USDA’s Agricultural Marketing Service. At the same time, the number of producers who relied on this market underscores the need to explore how the facility might continue with a return to profitability, which USDA will continue to assist with in conjunction with the company and its state partners.”

Further information on how poultry growers can file a claim through AMS’ Statutory Trust can be found here: https://www.ams.usda.gov/services/enforcement/psd/poultry-trust

Pure Prairie Poultry’s bankruptcy comes less than two years after the company had received a $7 million grant and a $39 million loan from USDA to restart the Charles City poultry plant. According to MPR, MN Ag Commissioner Petersen says that after speaking with USDA officials, they will be investigating this situation.

Poultry Company Bankruptcy Causing Headaches for Farmers

- Advertisment -

Latest News