The U.S. Department of Agriculture’s (USDA’s) distribution and oversight of grants and loans intended to help meat and poultry processors start or expand processing capacity has raised the ire of U.S. Rep. Randy Feenstra (R-IA) and several other Republicans.
Specifically, the lawmakers are concerned about the lack of oversight USDA has provided in the case of Pure Prairie Poultry, a Minnesota-based company that filed for Chapter 11 bankruptcy on Sept. 20 and ceased operations at its plant in Charles City, Iowa, on Oct. 2.
Dozens of employees were laid off, resulting in up to 50 farmers being left without any processing option and more than two million chickens throughout Minnesota, Iowa, and Wisconsin without feed, according to an Oct. 25 letter the members sent to USDA Secretary Tom Vilsack.
In Iowa, the bankruptcy left roughly 1.3 million broiler chickens in Iowa without feed, which caused Iowa Agriculture Secretary Mike Naig and the Iowa Department of Agriculture and Land Stewardship to take over care, custody, and control. After several alternative efforts were made to sell the broilers, depopulation of the birds in Iowa concluded last Friday, according to Rep. Feenstra.
“Iowa taxpayers deserve to know the full story behind the Pure Prairie Poultry bankruptcy and how the USDA approved nearly $46 million in taxpayer dollars for a company that left millions of chickens uncared for,” Rep. Feenstra said. “This serious lack of oversight is extremely concerning and has caused massive uncertainty for our growers who are already facing a harsh farm economy.”
The congressman joined eight other lawmakers, including U.S. Sen. Joni Ernst (R-IA) and U.S. Reps. Glenn “GT” Thompson (R-PA) and Ashley Hinson (R-IA), in demanding answers about the situation from Vilsack by Nov. 8.
“USDA has provided millions of dollars in taxpayer-funded loans and grants to meat and poultry processors across the country, which is why my colleagues and I are calling on USDA to provide answers,” said Rep. Finstad. “While expanding livestock markets and processing capacity is critical for farm country, the lack of oversight of these dollars by USDA harmed producers and caused a significant disruption to our nation’s food supply chain.”
Rep. Feenstra noted that the lawmakers’ letter will help get answers for America’s growers and address the federal government’s “carelessness” with taxpayer dollars.