(Charles City, IA) — The bankruptcy of a Minnesota poultry company is creating headaches for some poultry farmers across Iowa, Minnesota and Wisconsin.
Pure Prairie Poultry closed its processing plant in Charles City, IA last week 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.
The Minnesota Department of Agriculture has been trying to help farmers stuck with the company’s chickens by providing feed or locating potential new homes. Minnesota Ag Commissioner Thom Petersen told Minnesota Public Radio on Wednesday that “I want to be really clear that this is not a neglect case on the part of the farmers. The farmers are trying to do what’s right for the birds before it becomes a neglect-type situation.”
Now, according to the Des Moines Register, the Iowa Department of Agriculture has taken over the care of 1.3 million chickens owned by Pure Prairie Poultry after receiving an emergency court order. State officials say they are now working with farmers to feed and care for the birds. There is still concern and worry that the situation could lead to the birds being culled if a new processor can’t be found in a timely manner.
The news of 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.
In comments this week, Wisconsin Third District Congressman Derrick Van Orden also called for an investigation into the Pure Prairie Poultry bankruptcy saying in part “so USDA gave this company like 46 million and I have no idea where that went. So we need to start looking at this because if they’re getting that much money, that means the USDA is screwing up. This is the second time this company’s gone under. So we have to make sure that these farmers are compensated.”
Congressman Van Orden also highlighted how, unlike with dairy or grain farmers, there is nothing in terms of indemnity payments available for U.S. poultry farms in a situation like this one. “There’s absolutely a black hole in policy when it comes to poultry farming,” says Congressman Van Orden. “And I’m really glad that this was brought to my attention so that we can try to fix it.”
Wisconsin Farm Bureau Vice President Joe Bragger shared perspective from the farmer side as well saying in part that “These farmers are left in an impossible situation. They’ve got birds that they don’t necessarily own because I’m not sure if everybody understands the contract situation, yet they’re stuck taking care of them. And they’re going to do that till the last bird safely leaves. And so those resources are coming right out of their family budgets, coming out of their extended family stepping up to help them out. And there’s a desperate situation here. We just can’t let something like this happen.”
Read more from the Des Moines Register: https://www.desmoinesregister.com/story/money/agriculture/2024/10/08/iowa-to-feed-1-3m-chickens-after-pure-prairie-poultry-minnesota-files-for-bankruptcy/75568730007/
Read more from Minnesota Public Radio: https://www.mprnews.org/story/2024/10/09/thousands-of-chickens-to-be-culled-after-minnesota-poultry-company-faces-financial-problems
*Special thanks to Brian Winnekins at affiliate station WRDN-Durand, WI for his contributions to this developing story as well.
