By Andi Anderson
Iowa’s agriculture department is introducing legislation in response to a poultry plant bankruptcy that left the state responsible for over a million unsellable chickens. The issue arose when Pure Prairie Poultry closed its processing plant in Charles City, leaving farmers without a buyer for their contracted birds.
Last fall, the Iowa Department of Agriculture and Land Stewardship took custody of 1.3 million chickens. The state paid to feed and care for them while searching for another processor. However, a deal with a new processor failed because the company feared legal action from Pure Prairie Poultry’s creditors.
With no solution in place, Iowa had to depopulate the birds, leading to a total cost of $2.3 million for the state. Farmers received compensation for caring for the animals during the transition.
During an Iowa House appropriations subcommittee meeting, Agriculture Secretary Mike Naig emphasized the need for a legal framework to allow the state to sell or process livestock it takes into custody. The proposed legislation will be part of the department’s policy bill.
Naig believes this law is necessary to prevent similar situations in the future, ensuring that Iowa can manage abandoned livestock more effectively without facing legal barriers. The bill aims to protect farmers, processors, and the state from financial and logistical burdens in cases of livestock abandonment due to bankruptcy.
This proposed legislation could have significant implications for Iowa’s agriculture sector, particularly for poultry and livestock producers who rely on stable processing agreements. The outcome of this bill will be closely watched by industry stakeholders and lawmakers alike.
Photo Credit: gettyimages-wikoski
Categories: Iowa, Government & Policy