Federal Assistance Now Available for Eligible Poultry Growers

Funds to be distributed to producers affected by 2008 dealer bankruptcy

NASHVILLE – Tennessee poultry growers who suffered losses due to the bankruptcy of dealers who trade in live poultry may be eligible for federal assistance. The Tennessee Department of Agriculture has begun mailing applications to poultry growers this week.

“Some Tennessee poultry producers may have suffered revenue losses in 2008 as a result of the unexpected bankruptcy of live poultry dealers,” said Commissioner Terry J. Oliver. “This assistance program will help producers who were most affected to recover some of their losses.”

2008 was a difficult year financially for live poultry dealers. A live poultry dealer is someone who obtains live poultry through a contract arrangement with a grower or who purchases live poultry for slaughter or resale. Excess supplies of chicken drove down prices while production expenses increased as corn prices were near an all-time high.

The USDA Poultry Loss Contract Grant Assistance Program will provide up to $60 million in assistance in nine states to growers whose arrangements were terminated due to the bankruptcy of live poultry dealers. Other states participating in the program include Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, Pennsylvania and Texas. Approximately 90 Tennessee poultry growers primarily located in the southeastern region of the state are potentially eligible for assistance.

To be eligible, producers must have had a poultry growing arrangement with a live poultry dealer that filed bankruptcy in December 2008 and the producer must have terminated the arrangement between May 1, 2008 and July 1, 2010. Eligible producers must not have entered into a growing arrangement with any live poultry dealer for one month after their original agreement with a bankrupt dealer was terminated.

Applications for assistance are due Nov. 30. For information about the assistance program or to receive an application, contact Ed Harlan of the Tennessee Department of Agriculture at 615-837-5299 or Ed.Harlan@TN.gov.