I attended the press conference for the Producer Retirement Program at the world pork expo and I wanted to report some of what I learned in a special report today. Below, I've copied the brochure they handed out at their booth at the trade show. Additional information will be available at www.producerretirementprogram.org in the future.
WHAT IS PRP?
The Producer Retirement Program (PRP) is a new initiative sponsored by, controlled by, and paid for by the U.S. pork producers. PRP is designed to assist PRP members to retire their entire farrowing operation or a portion of their operation via individual sow units. The program is designed to supplement the cull price that the members would otherwise receive for their sows as they exit all or a portion of their production.
"The Producer Retirement Program is committed to assisting those American pork producers who wish to voluntarily reach an equitable retirement from a portion, or more, of its swine farrowing activities. This will be accomplished by, establishing a producer-controlled and producer-funded program, to allow participating pork producers to bid on sow retirement on a facility-by-facility basis."
A FEW KEY ELEMENTS OF PRP.
- A new Iowa non-profit corporation called "Producer Retirement Plan, Inc." has been formed as the vehicle by which the PRP will be carried out. PRP will be operated for the mutual self help and benefit of its voting members.
- To be eligible to be a voting member of PRP, a producer must own sows in the United States. All U.S. producers owning sows will be invited to join PRP.
- At the time a producer joins PRP, they agree to pay a $20 per sow in their herd to PRP. PRP expects many of its members will pay the full $20 up front to facilitate timely implementation of the program.
- Persons other than sow owners (i.e., feeder pig purchasers and allied industry) are encouraged to support PRP financially, but will not be voting members.
- PRP intends to use the membership payments, together with a loan against payments to be made, to fund its program. PRP intends to have financial commitments of at least $50 million before initiating the program. If financial commitments sufficient to initiate the program are not received, all contributed funds, less start-up expenses, will be returned to the contributors.
- The PRP board of directors plans to have a bidding process completed and to have the program operational by mid-summer 2009
- Final terms and conditions of Program participation shall be as stated in the contracts and other agreements among the Producers and PRP.
BOARD OF DIRECTORS
PRP has a seven person board of directors, all of whom are voting members.
Chuck Wirtz (Chair - IA)
Art Lehmann (IL)
Dave Hardin (IN)
Greg Boerboom (MN)
Brad Freking (MN)
John Howard (NC)
Scott Burroughs (NE)
PRP has contracted with Insight Enterprise Consulting of New Ulm, Minnesota for general management and policy services and with Value Added Science & Technologies of Mason City, Iowa, for administrative and management services.
Questions about PRP should be directed to our program director, Brian Foster at Insight Enterprise Consulting.
Telephone - 507-766-1930
Email - email@example.com
website - www.producerretirementprogram.org
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