In an unexpected turn of events, the shuttering of Pure Prairie Poultry, Inc. has left 1.3 million chickens and hundreds of poultry workers across Iowa, Minnesota, and Wisconsin in the lurch. The Iowa Department of Agriculture and Land Stewardship (IDALS) stepped in to prevent a welfare crisis after Pure Prairie Poultry announced it could no longer feed its birds, leading to a multi-state ripple effect that impacted growers, suppliers, and processors in the region.

Credit: Google Maps Pure Prairie Poultry location, permanently closed in Charles City, IA
Credit: Google Maps
Pure Prairie Poultry location, permanently closed in Charles City, IA.
loading...

According to reports, on October 2nd, Pure Prairie Poultry halted operations at its Charles City, Iowa, processing plant, citing financial woes that prevented it from purchasing feed for its broiler chickens. The company then laid off its workforce and ceased production, sending a shockwave through the community. Contracted growers in Wisconsin and Minnesota, who relied on the Charles City facility as their primary processor, were left scrambling to find other outlets for their birds.

Credit: Canva
Credit: Canva
loading...

For the state, the timing couldn’t have been worse. In 2022, the USDA and Iowa's Rural Development office had celebrated a $45.6 million expansion of Pure Prairie Poultry’s plant in Charles City. The investment, meant to boost local agriculture and increase processing capacity, was part of a broader USDA effort to support rural economies and agricultural infrastructure. The recent bankruptcy filing, however, has raised serious questions about USDA oversight and taxpayer protections.

AM 1490 WDBQ logo
Get our free mobile app

Concerned for the welfare of the birds, IDALS took immediate custody of Pure Prairie’s 1.3 million broiler chickens, which were spread across 13 farms in Iowa. As the company’s financial troubles unfolded, the department began incurring significant costs to cover feed, care, and staffing, amounting to over $1 million by mid-October. These costs are expected to exceed $2 million once all bills are finalized. As of now, 1.3 million chickens have been culled in a bid to reduce taxpayer costs.

Initial efforts to sell the chickens or secure a buyer met resistance. IDALS negotiated with Tyson Foods to purchase the birds at 50 cents per chicken—half of Tyson's original offer. Tyson agreed to cover transportation and processing costs, while IDALS would manage the birds until they were ready for market. But some of Pure Prairie’s contracted growers expressed intentions to file lien claims on the chickens, citing their financial stake in the birds. Fearing future litigation, Tyson rescinded its offer.

Credit: Canva Chicken processing conveyor.
Credit: Canva
Chicken processing conveyor.
loading...

With no buyer in sight and mounting costs, IDALS turned to the courts for permission to depopulate the chickens—a decision that, according to department officials, was made only as a “last resort.” By October 17th, licensed veterinarians from IDALS began the difficult task of culling the birds, a process that concluded on October 25th. The department stated that depopulation was necessary to “limit costs to Iowa taxpayers” and resolve the welfare concerns associated with the abandoned chickens.

The collapse of Pure Prairie Poultry has drawn attention to the USDA’s $45.6 million investment in the Charles City plant. Iowa Secretary of Agriculture Mike Naig has even questioned the USDA’s decision-making and called for Congress to exercise its oversight authority, urging greater accountability to ensure taxpayer dollars aren’t misused.

Credit: Canva Chicken processing conveyor.
Credit: Canva
Chicken processing conveyor.
loading...

In response, a USDA spokesperson defended the agency’s role, noting that the funding was intended to support local farmers, workers, and the community. The USDA has since been working with IDALS, through federal indemnity and poultry trust programs, to explore options for re-establishing poultry processing in the area. The agency emphasized its ongoing efforts to collaborate with local and state partners to mitigate the impact on farmers affected by the plant’s sudden closure.

IDALS has already poured over $1 million into managing the birds' welfare and expects its final expenses to exceed $2 million, covering feed, personnel, transportation, and disposal. The agency is exploring legal avenues to recoup these costs and has indicated it will pursue reimbursement from any parties with ownership claims over the chickens. A court order from October 11th stipulates that any individuals or entities with ownership interest in the livestock must repay IDALS for expenses incurred. Additionally, the court instructed IDALS to file a final report with a detailed accounting of the costs and actions taken, which will provide greater transparency for the taxpayers who ultimately footed the bill for this unexpected crisis.

Credit: Google Maps Pure Prairie Poultry location, permanently closed in Charles City, IA
Credit: Google Maps
Pure Prairie Poultry location, permanently closed in Charles City, IA
loading...

The collapse of Pure Prairie Poultry and the ensuing animal welfare crisis underscore the vulnerability of local agriculture to financial mismanagement and highlight the importance of strategic planning and oversight in taxpayer-funded agricultural initiatives. While the USDA continues its efforts to restore processing capacity in the region, this event serves as a reminder of the risks involved in large-scale agricultural investments and the impact on communities and farmers when things go horribly wrong.

This incident has not only disrupted the lives of hundreds of workers and growers across the Midwest, but has raised challenging questions about financial accountability and sustainability in rural development projects. As state and federal agencies work to resolve the aftermath, the hope is that lessons learned here will lead to a more resilient and transparent system for local agricultural support.

LOOK: Fastest-growing jobs in Iowa

Stacker analyzed data from the Bureau of Labor Statistics to determine which jobs in Iowa grew the fastest between 2022 and 2023.

Gallery Credit: Stacker

LOOK: Counties with the highest unemployment in Iowa

Stacker compiled a list of the counties with the highest unemployment in Iowa using data from the Bureau of Labor Statistics. Counties are ranked by unemployment rate in November 2023.

Gallery Credit: Stacker

More From AM 1490 WDBQ