Grassley says getting federal grant money back after Pure Prairie Poultry bankruptcy not likely
CHARLES CITY — Iowa Senator Chuck Grassley says getting back federal grants and loans connected to the relaunching of the chicken processing plant in Charles City by Pure Prairie Poultry is not likely.
Pure Prairie Poultry received around $38 million to purchase new equipment, add a loading dock and expand their offices. The plant resumed operations in November 2022, but Pure Prairie Poultry shut down the facility in early October after filing for bankruptcy in September.
Grassley says he’s waiting for answers. “Last follow up I had was sending a letter to the USDA on getting an explanation on oversight of this money and what care was taken prior to the grant and the guaranteed loan being given out.”
Grassley says there’s probably not much that can be done to get back any of that USDA money now that Pure Prairie Poultry is in bankruptcy. “I think recapturing federal money is very doubtful. It’s just a sad situation number one that maybe an organization that wasn’t ready to process poultry was given this money. For those private investors, it didn’t work out well, and it surely hasn’t worked out well for the taxpayers obviously.”
In recently filed court documents, the Iowa Department of Agriculture and Land Stewardship says it cost the state over $2.3 million to care for and eventually euthanize some 1.3 million chickens from the closure of the plant. Grassley has previously said those impacted most by Pure Prairie Poultry’s closure are the some 140 employees it put out of work.
