Wisconsin farmers regroup after massive 'chicken giveaway' on Facebook
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(Wisconsin News Connection) Some Wisconsin poultry farmers have been left in the lurch after a sudden bankruptcy shed light on a law that prevented state officials from coming to their aid.
The processor Prairie Farms worked with about 50 farms in Wisconsin, Minnesota and Iowa to raise broiler chickens.
Agriculture departments in the other two states stepped in to help farmers after Prairie Farms filed for bankruptcy last month. But in Wisconsin, farmers had to resort to giving away tens of thousands of chickens on Facebook.
Jason Mugnaini, executive director of government relations for the Wisconsin Farm Bureau, said the state just didn't have the structure to deal with such a situation.
"This very particular circumstance identified a gap in our state and federal laws," said Mugnaini. "That's really what it came down to, is that we didn't know that this was even a gap that existed in state statute."
He explained that in Wisconsin dairy, vegetable, and grain farmers have an indemnity fund available to make a claim in situations like this. Poultry farmers don't.
Reports from one farmer in western Wisconsin say Prairie Farms owes him nearly $100,000.
Mugnaini said the first part of the crisis was getting the chickens off the farms. Now, it's about keeping these farmers in business.
"The abrupt nature in which this really occurred left people in some really dire straits," said Mugnaini, "and that's really what the biggest challenge is right now, is how are we going to get these folks back up and running, continuing to produce agriculture, get them paid for what they're owed?"
On the federal level, poultry farmers have coverage under the Packers and Stockyards Act to make a claim and be compensated.
Mugnaini said it's just taking longer than they expected and there's no way to speed up the process.
"Working though trying to get those dollars out the door is going to be the most important piece of the next steps of this," said Mugnaini, "and then really trying to figure out how something like this happens, how we can prevent it from going forward."
The Wisconsin Farm Bureau says there are about 300 poultry farms like these in Wisconsin.