Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 9/16/10

USDA will provide $60 million in the form of a grant to those states where poultry producers lost a contract due to the bankruptcy of an integrator in December of 2008, according to summary document of 2009 disaster assistance designations.

In December 2008 Pilgrim’s Pride declared bankruptcy and subsequently closed a number of poultry processing plants. The company emerged from bankruptcy a year later and subsequently was purchased by JBS USA.

Under the terms of the disaster assistance grant, poultry producers must have lost their contract with the bankrupt integrator between May 1, 2008, and July 1, 2010, and been unable to enter into a subsequent contract. A grant will be made to all states with impacted producers to help cover the needs of these producers.

Payments will be based upon a producer’s most recent 12 months' receipts multiplied by a payment factor to ensure that not over $60 million is spent and no producer’s payment is over 95 percent of their previous 12 months' receipts.

USDA noted that average adjusted gross income and payment limitations consistent with other disaster programs will apply.

Both Rep. Bob Etheridge (D-N.C.) and Sen. Blanche Lincoln (D-Ark.) were quick to take credit for their requests to USDA to make this disaster relief available to poultry farmers.

Both states were affected by Pilgrim’s Pride plant closures.

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