News

Lawmakers question USDA on Pure Prairie Poultry oversight

A group of Republican lawmakers are questioning USDA’s oversight after Minnesota-based Pure Prairie Poultry filed for bankruptcy less than 2 years after receiving more than $45 million in loans and grants.

U.S. Senator from Iowa Chuck Grassley says companies don’t just fail out of the blue and the group wants answers.

“What did the USDA learn? When did they learn about Pure Prairie and how long it was struggling? Does the USDA have a process for vetting companies before it gives away taxpayer dollars?”

Pure Prairie Poultry filed for Chapter 11 bankruptcy in mid-September and the company’s plant in Iowa stopped operations in early October. The closure left contract growers in Minnesota, Iowa, and Wisconsin without feed or processing access for 2 million birds. 

U.S. Congressman from Minnesota Brad Finstad tells Brownfield farmers were caught off guard with the closure and awareness might have softened the blow.

“I met with a processor set up to run three to four pound stewing hens and they would have loved to have had a heads up to rework their line to support a six to eight pound chicken these farmers were producing, but there was no time.”

Finstad says supporting local meat processing is important, but so is providing more transparency and oversight for the use of taxpayer dollars.

“For us to understand the oversight, whether it’s the loan or grant programs and how we service those through USDA, I think there’s good information to be learned that will allow us to take a deep dive and rethink how this might be done differently in the future.”

The lawmakers sent a letter to Ag Secretary Tom Vilsack last week with a list of questions and have asked for a response by Friday, November 8.

In a statement, USDA tells Brownfield the agency has worked furiously to rebuild and create new markets following COVID. The agency says they’re working to help the facility reopen and rather than trying to score political points, USDA says those members of Congress should work with the agency to reopen the facility and pass a new farm bill, which is two years late.