9 federal lawmakers wrote a letter to United States Division of Agriculture (USDA) officers, searching for explanations about an obvious lack of oversight regarding the demise of Pure Prairie Poultry (PPP), an organization for which the company offered funding.
PPP filed for chapter in September, then went on to stop operations at its plant in Charles Metropolis, Iowa. In the end, the corporate said that it now not had the sources to feed the greater than 2 million chickens that about 50 contract growers in Iowa, Minnesota and Wisconsin have been elevating for PPP.
About 1.3 million of these chickens have been being raised in Iowa, and the Iowa Division of Agriculture and Land Stewardship (IDALS) issued a press launch on October 25 that said these birds needed to be depopulated, regardless of efforts on behalf of the state company to seek out consumers for the chickens or a facility to course of the birds.
The letter, dated October 25, was despatched to U.S. Secretary of Agriculture Tom Vilsack and USDA Inspector Normal Phyllis Fong. These signing the letter have been all Republicans, and all both had constituents within the states the place the chickens have been grown or held management positions on congressional agriculture committees. These included Iowa’s Sen. Chuck Grassley, Sen. Joni Ernst, Rep. Ashley Hinson and Rep. Randy Feenstra; Minnesota’s Rep. Brad Finstad and Rep. Michelle Fischbach; Wisconsin’s Rep. Derrick Van Orden; Home Agriculture Committee Chairman Glenn “GT” Thompson and Senate Agriculture Committee Rating Member John Boozman.
“In 2022, Pure Prairie Poultry was awarded a assured mortgage of $38.7 million from USDA Rural Growth’s Meals Provide Chain Assured Mortgage Program (FSCGLP) and a grant of $6.9 million from USDA Rural Growth’s Meat and Poultry Processing Enlargement Program (MPPEP). Based on Pure Prairie Poultry’s chapter court docket filings from the week of September 22, the firm reported liabilities between $100 million and $500 million, with $50 million to $100 million in belongings. Moreover, the corporate projected a damaging money movement of $1.8 million per week over the next six weeks. Additional, it’s our understanding that growers and feed mills affiliated with Pure Prairie Poultry haven’t been paid for months. Given this truth sample, we stay deeply involved in regards to the lack of oversight USDA has offered on this case,” the lawmakers wrote.
“Over the previous two years, USDA has offered $223 million in mortgage ensures and grants to 30 meat and poultry processing corporations. A press launch from the USDA celebrated this funding as a part of the Biden-Harris Administration’s “dedication to strengthen important meals provide chain infrastructure to create extra thriving communities for the American folks.” Sadly, the funding on this case as an alternative ended within the lack of revenue, jobs, and poultry throughout three states.”
The letter included ten particular questions associated to the company’s oversight or lack of oversight regarding the Pure Prairie Poultry scenario.
Elected officers remark
A number of of these to signal the letter supplied feedback on the scenario. These embrace:
“A lot of our poultry farmers in Wisconsin, Minnesota, and Iowa have been left within the lurch by the USDA’s absence of oversight and accountability of Pure Prairie Poultry,” stated Van Orden. “The USDA will reply for the $45.6 million in loans and grants given to Pure Prairie Poultry, and PPP will reply for what they did with that cash earlier than they stiffed our farmers.”
“USDA is accountable for maintaining tabs on the taxpayer-funded grants it administers, however it clearly dropped the ball with Pure Prairie. Iowans and others throughout America’s Heartland have misplaced their jobs and their poultry market because of Pure Prairie’s closure. USDA should clarify to Congress and the general public what went fallacious to assist forestall a repeat state of affairs,” Grassley stated.
“USDA has offered tens of millions of {dollars} in taxpayer-funded loans and grants to meat and poultry processors throughout the nation, which is why my colleagues and I are calling on USDA to offer solutions,” stated Finstad. “Whereas increasing livestock markets and processing capability is important for farm nation, the dearth of oversight of those {dollars} by USDA harmed producers and precipitated a major disruption to our nation’s meals provide chain.”
“Iowa taxpayers should know the complete story behind the Pure Prairie Poultry chapter and the way the USDA accepted practically $46 million in taxpayer {dollars} for a corporation that left tens of millions of chickens neglected. This critical lack of oversight is extraordinarily regarding and has precipitated huge uncertainty for our growers who’re already going through a harsh farm economic system,” stated Feenstra. “Our letter to USDA will assist us get solutions for our growers and handle the federal authorities’s carelessness with taxpayer {dollars}. I commend Secretary Naig for responding rapidly and professionally to this disaster.”
