Republican lawmakers have called on USDA to provide explanations regarding the oversight of Pure Prairie Poultry, Inc., which filed for bankruptcy shortly after receiving substantial USDA funding. The situation has raised concerns about the department’s management of grants and loans, as well as its impact on farmers and the poultry industry.
A group of Senators, including Sen. Jonie Ernst (R-Iowa), sent a letter to USDA this week.
As AgDay reported on Tuesday, the Iowa Department of Agriculture euthanized roughly 1.33 million chickens.
That’s after Pure Prairie Poultry said in late September that due to its bankruptcy, it could no longer afford to buy feed for its flock living on 14 Iowa farms. It’s estimated the process cost USDA $2 million.
The company also contracted with farmers in Wisconsin and Minnesota who were also affected.
Company Received $45 Million from USDA
Ernst says Pure Prairie Poultry was only in business for a few short years, and in that time, she says the company received $45 million dollars in grants and loans from USDA.
- Nearly $7 million of that was from USDA’s Meat and Poultry Processing Expansion program.
- The company also received a $38.7-million loan from USDA’s Food Supply Chain Guaranteed Loan Program, which is part of President Biden’s “Build Back Better” plan.
According to a White House Fact Sheet, this was tied to the Biden-Harris administration’s plan to promote competition in the American economy and “create a fairer, more resilient, and more dynamic economy.”
The $45 million was used by Pure Prairie Poultry to help expand and renovate a shuttered processing plant in Charles City, Iowa. USDA issued a press release in July of 2024 to celebrate the investments.
Lawmakers’ Demands
According to the lawmakers’ letter, which is demanding accountability and answers, close to 2-million chickens were “left without feed or any processing option.”
The letter requests explanations on several key points:
- The oversight process for loan and grant guarantees
- USDA’s awareness of Pure Prairie Poultry’s financial situation
- Steps taken to assist affected growers and state agriculture departments
- Efforts to salvage the Charles City plant
In the letter, lawmakers said, “Over the past two years, USDA has provided $223 million in loan guarantees and grants to 30 meat and poultry processing companies. A press release from the USDA celebrated this funding as part of the Biden-Harris Administration’s ‘commitment to strengthen critical food supply chain infrastructure to create more thriving communities for the American people.’ Unfortunately, this investment has instead resulted in the loss of income, jobs, and poultry across three states.”
“Pure Prairie Poultry’s abrupt closure shows the importance of proper vetting and oversight at USDA to ensure the agency’s multi-million dollar grants and loans are actually helping producers, rather than being flushed down the drain and harming entire rural communities in the process,” Ernst says. “Encouraging the growth of meat processing and strengthening our supply chain is a cause I can support, but this lack of accountable spending hurts our farmers, livestock, and taxpayers.”
USDA Defends Grants an Programs
A USDA spokesperson defended the department’s programs, saying they have worked to “rebuild and create new markets for U.S. farmers” after challenges posed by trade wars and the Covid-19 pandemic.
The spokesperson also urged lawmakers to focus on passing the overdue farm bill: “Rather than trying to score political points, those members of Congress should work with USDA to reopen the facility and pass a new Farm Bill, which is now two years late.”
More Background on Pure Prairie Poultry
- More than 1 million birds had to be culled in Iowa due to the company’s inability to care for them.
- Contracted farmers in Wisconsin and Minnesota were also affected.
- According to the lawmakers’ letter, approximately 2 million chickens were “left without feed or any processing option.”
The lawmakers have requested USDA respond to their questions by Nov. 8.
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