Source:  Press Release, 7/9/09

U.S. Rep. Bob Etheridge (D-Lillington), the only N.C. member of the House Ways and Means Committee, introduced legislation today to provide temporary compensation to N.C. poultry producers who lost contracts when their processing plant declared bankruptcy.

“I introduced this legislation because these farmers should immediately be eligible for disaster assistance from the U.S. Department of Agriculture,” said Etheridge. “I will not stand by as rural America’s poultry producers are left abandoned by this economic downturn.  We have a tool to help them and this legislation would give them a strong chance to get back on their feet.”

The legislation would provide emergency funds through the Department of Agriculture to help farmers who lost their poultry contracts through no fault of their own survive the current economic downturn until market conditions improve.  The Secretary of Agriculture uses Section 32 funding to support the farm sector through a variety of activities, including producer payments or other means of economic assistance.  There are approximately 46 effected poultry farmers in North Carolina’s Second Congressional District concentrated in Chatham, Lee, Cumberland and Harnett Counties.

The nation’s broad financial downturn has led to an unprecedented decline in sales of value-added, exported, and raw poultry products, and led to the termination of poultry contracts to growers in several states across the Southeastern region.  The steep decline in sales has forced one of the nation’s largest poultry companies, Pilgrim’s Pride, to declare bankruptcy, and has put the remaining U.S. poultry companies at risk of failure.  The loss of contracts puts farmers at risk of losing their livelihoods, their farms and their homes, while emergency funding can provide a bridge to allow them to keep their homes and farm equipment ready for the next flock

“Congress has worked with the past and current Administration to ensure a financial bridge for Wall Street, we now need to ensure a bridge for those on Main Street and our Nation’s farms,” said Etheridge. “We have an opportunity to provide temporary support to an industry that is vital to America’s economy and food network and we should take advantage of the opportunity.”