Gov Jindal signs mega-fund bill
Gov. Bobby Jindal signed Senate Bill 283 at 2:30 p.m. on Tuesday, leading the way to the sale of Farmerville’s Pilgrim’s Pride poultry processing plant to Foster Farms of California.
The bill – authored by Sen. Mike Walsworth R-West Monroe -- passed the full House last Thursday. The bill amends the rules of the state’s $414 million economic development mega-fund to allow the state to use $50 million from the fund toward the sale and equipment upgrades.
Agriculture and Forestry Commissioner Mike Strain said the legislature lowered the amount a private enterprise would have to invest in a Louisiana business venture in order to qualify for mega-fund money.
“Governor Jindal, and Senators Mike Walsworth and Bob Kostelka and Representatives Hollis Downs and Jim Fannin worked tirelessly on this deal,’’ Strain said. “Louisiana agriculture is too important to not get this kind of governmental support.’’
Foster Farms will match the state’s $50 million investment.
Pilgrim’s, which declared bankruptcy in December, closed the facility last Friday, but has already placed eggs in area hatcheries in anticipation of Foster’s ownership.When hatched, these chicks will be placed in local farms owned by independent growers. Foster Farms’ operation will continue to utilize the established network of experienced local growers, both to grow chicks, as well as the pullets and breeders necessary for an ongoing supply of hatching eggs. In the upcoming weeks, company representatives will be in Northeast Louisiana to meet with local growers individually
Foster Farms said last week it plans to reopen the plant in mid-July.
“Foster Farms is looking forward to expanding our operations into the State of Louisiana,” said Foster Farms CEO Ron Foster. “Foster Farms anticipates upgrading and adding to the capabilities of the Farmerville complex. These enhancements, when operational and used in conjunction with the experienced local work force, will allow us to build a strong sales base, leading to a return to full double shift capacity, over time, after Foster Farms’ purchase.”
After Jindal’s signature, the bill still faces two more obstacles before the sale of the plant is completed.
First, the Joint Legislative Budget Committee must approve the expenditure. That’s expected to happen later this week. Then the bankruptcy court in Fort Worth, Texas, will be asked to approve the sale to Foster Farms on May 19.
According to the 2007 Louisiana Summary compiled by the LSU AgCenter, poultry production is the largest animal agricultural industry in the state and is second only to forestry in total income production for all agricultural commodities.
In 2007, 460 Louisiana growers produced 1.06 billion pounds of broiler meat with a gross value of $795 million. The gross value for all poultry production in Louisiana was $884.1 million in 2007. The total value of poultry production in the state was $1.733 billion.
The Legislature gave final approval today to Senate Bill 283, which allows Gov. Bobby Jindal to commit $50 million of state money to keep the Pilgrim’s Pride plant in Farmerville.
The House approved, 103-0, Senate Bill 283, which altered the criteria to tap the state’s mega-project recruitment fund to give the governor authority to use the money for the plant deal.
According to his aides, Jindal will sign the measure as soon as the bill’s final paperwork is done, which should happen in the next few days.
Pilgrim’s Pride announced it was idling the 1,300-employee Farmerville in February. The plant is set to close on Friday.
The state recruited Foster Farms of California to buy the facility.
Under the deal, which is still waiting on the signing of a purchase agreement between both parties, the state will pay $40 million to Foster Farms to assist in the purchase and contribute $10 million toward plant infrastructure and equipment improvements. Foster Farms will match those amounts, resulting in an $80 million plant purchase price for Pilgrim’s and $20 million in plant upgrades.
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