Pure Prairie Poultry’s abrupt closure has left its contract growers in a difficult situation. Minnesota and Iowa have stepped in to help manage millions of chickens. Wisconsin has provided minimal support. USDA is investigating after the company received government loans and grants in 2022.
In November 2022, Pure Prairie Poultry received substantial USDA funding:
- A $38,720,000 loan from the Food Supply Chain Guaranteed Loan Program.
- A $6,963,725 grant from the Meat and Poultry Processing Expansion Program.
The total funding of $45.6 million was intended to help the company expand and renovate a shuttered processing plant in Charles City, Iowa.
According to the company’s CFO, George Piechel, the $38.7 million loan “was delayed substantially, thereby exacerbating the company’s economic stress.” Multiple appraisals and re-underwriting were reportedly required. The $6.9 million grant was used to provide gap financing for the company when it was generating little revenue in early 2023.
Despite the significant investment, the company filed for Chapter 11 bankruptcy in September, less than two years after receiving the funding.
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