Dozens of farmers in Iowa, Minnesota and Wisconsin are losing their flocks after a struggling organic broiler chicken producer suddenly went out of business a year after receiving a $39 million federal loan. They are scrambling to feed themselves.
Pure Prairie Poultry closed its Charles City, Iowa, factory after filing for bankruptcy last month. A Minnesota company provided farmers with chicks and feed to raise the birds until they were ready to be slaughtered and sold at a processing center in northeastern Iowa.
“We understand that our challenges are creating significant hardship for growers and other producers,” Pure Prairie spokesman John Austin said in an email. “For that, I apologize without reservation.”
In bankruptcy court documents, the company detailed its struggle to restart and turn a profit after acquiring the struggling Charles City factory in 2021.
US Department of Agriculture in 2022 Pure Prairie was awarded a $39 million guaranteed loan and a $7 million grant to expand its business. The company said the grant served as a stopgap until it could receive the loan in April 2023.
The company said in court records that its financial problems also stem from supply chain issues caused by the COVID-19 pandemic and low chicken prices.
Pure Prairie eventually emerged from bankruptcy, but Austin said the company’s funds were subsequently frozen by a third-party lender.
Austin said Pure Prairie is still trying to sell the business.
After Pure Prairie Poultry closed, bird farmers’ checks and chicken feed dried up, threatening an animal welfare crisis and straining farmers’ finances, Wisconsin Sen. Tammy Baldwin said in the article. I mentioned it inside. Wednesday’s letter Request assistance from the United States Department of Agriculture.
“This situation remains urgent as the lives of hundreds of thousands of animals are at risk and the farmers who contract with this processor are suffering an economic blow,” Baldwin wrote.
Iowa Department of Agriculture early this month The company has pledged to help feed and care for approximately 1.3 million chickens on 14 farms in Iowa. The agency took ownership of the birds through a court order and is currently trying to recover costs from Pure Prairie.
In Minnesota, an additional 300,000 chickens were “processed, removed from farms, or depopulated,” state Department of Agriculture spokesman Allen Sommerfeld said in a statement.
“MDA, farmers and partners were able to process some of the birds, but others were given away by farmers,” Sommerfeld said. “While the chickens do not pose a health or safety risk, MDA is using emergency resources to ensure that the remaining chickens are humanely depopulated in accordance with American Veterinary Pharmaceutical Association standards and approved by the Minnesota Board of Animal Health.” We confirmed that it was supervised by experts.
In a letter to the Department of Agriculture, Baldwin warned of the risk of spreading avian influenza in Wisconsin, saying, “Farmers have no choice but to distribute chickens by the tens of thousands to people who can afford to feed them. There is no other good option.”
A USDA spokesperson said the agency is in contact with the departments of agriculture in Iowa, Minnesota and Wisconsin to see what financial assistance it can provide to local farmers. Producers can: Submit a claim Contact USDA and get assistance from your local Natural Resources Conservation Service Center.
“At the same time, the number of producers who relied on this market highlights the need to consider how facilities can continue to return to profitability, and USDA continues to support them.” ” said the spokesperson.
