CHARLES CITY, Iowa — A sudden closure of an organic chicken producer has left numerous farmers in Iowa, Minnesota, and Wisconsin in a difficult position as they struggle to secure feed for their poultry.

The company, Pure Prairie Poultry, has ceased operations at its facility in Charles City, Iowa, following its bankruptcy filing last month. This Minnesota-based business had previously provided both chicks and feed to farmers, allowing them to raise the birds until they were ready for slaughter and processing at the northeastern Iowa plant.

No immediate response was received from Pure Prairie’s lawyers regarding inquiries made last Thursday. However, documents from the bankruptcy court outlined the company’s ongoing battle to regain financial stability and turn a profit after it took over the ailing Charles City facility in 2021.

In 2022, the U.S. Department of Agriculture awarded Pure Prairie a $39 million loan guarantee aimed at expanding its operations, along with a $7 million grant. The company described the grant as a crucial temporary support while it awaited access to the larger loan, which had been delayed.

According to court documents, the financial hardships the company faced were compounded by supply chain disruptions caused by the COVID-19 pandemic and the decline in chicken prices.

With Pure Prairie’s closure, many farmers report a sudden halt in their supplies of checks and feed, which has led to an impending animal welfare crisis and a financial strain on their operations. U.S. Senator Tammy Baldwin from Wisconsin highlighted these issues in a letter sent to the U.S. Department of Agriculture, stating, “This situation remains urgent due to the hundreds of thousands of animals’ lives at risk and the financial hit for the farmers that contracted with this processor.”

This month, the Iowa Department of Agriculture committed to assisting approximately 1.3 million chickens at 14 farms across the state. The agency assumed control of the birds through a court order and is now working to recover costs from Pure Prairie.

Additionally, about 300,000 chickens in Minnesota were either processed, relocated, or depopulated, according to a spokesperson for the state’s Agriculture Department, Allen Sommerfeld. He stated, “The MDA, farmers, and partners were able to process some birds, and others were given away by farmers. While the chickens do not pose a health or safety risk, the MDA utilized emergency resources to ensure the remaining chickens were humanely depopulated according to American Veterinary Medical Association standards and overseen by experts from the Minnesota Board of Animal Health.”

In her correspondence to the USDA, Baldwin expressed concern about the potential spread of bird flu in Wisconsin as farmers, faced with limited options, are forced to surrender chickens in large numbers to individuals who can afford to feed them.

A USDA spokesperson confirmed that the agency is communicating with the agriculture departments in Iowa, Minnesota, and Wisconsin to explore financial assistance options for affected local farmers. Additionally, growers are encouraged to file claims with the USDA to access support from local Natural Resources Conservation Service centers.

The spokesperson further noted that the situation reflects the significant number of producers reliant on this market, underscoring the necessity of investigating ways for the facility to regain profitability, which the USDA is committed to assisting with going forward.