Gov. John Carney, along with Maryland Governor Larry Hogan, announced a new grant program to assist contract poultry growers impacted by the coronavirus pandemic.
“The poultry industry on Delmarva is second to none and it’s because of the long-standing working relationships that we have across state lines, especially when it comes to supporting our family farms,” stated Carney. “Covid-19 has impacted all of us, but for the poultry growers who take pride in putting safe, nutritious food on your table, many of the roadblocks that Covid-19 threw at them were out of their control. This grant program is an opportunity once again for both our states to show our support for our family farms.”
“I am pleased to announce that we are immediately launching a new relief program which will provide direct payments to thousands of Maryland farmers, growers, and producers who have been hurt by COVID-19,” stated Hogan. “Far too often our farmers don’t get the respect or the appreciation they deserve, but I want our entire ag community to know that your commitment to our state and to our ag industry does not go unnoticed.”
Growers are paid on their performance in raising the chickens on contract for our integrated poultry companies, but the actual ownership of the birds remains with the companies. Unfortunately, due to the rule, poultry growers are not eligible for USDA’s Coronavirus Food Assistance Program funds.
The Delaware Department of Agriculture is administering the program and will tgake applications until December 1.
“Because of the disruption of markets, labor availability for the companies to run at full capacity in the processing plants, and other Covid-19 related impacts, Delaware growers were faced with longer than normal layout times and saw a decrease in the number of birds placed,” said Secretary of Agriculture Michael T. Scuse. “In some cases, farms were required to depopulate birds because a company did not have the ability to process the birds. All of these factors created significant reductions in grower pay and hardships for our family farms that are vital to our economy.”
The Delaware Contract Poultry Grower Grant Assistant Program will compensate contract poultry growers who:
- had an active grower contract in force on facilities located in Delaware on March 15 when Covid-19 impacted our state;
- have an approved CAFO permit or have filed a Notice of Intent for CAFO coverage; and
- do not have business interruption coverage for the losses covered by the grant program.
For poultry growers who meet these requirements, the grant program will compensate:
- $1,000 per poultry house, up to a maximum payment of $5,000 per farm.
- In addition, any grower that meets the above criteria, and had to depopulate birds remaining in-house for composting related to COVID-19 will receive another $1,500 per poultry house depopulated without a a cap.
“The chicken industry never called time out during the COVID-19 pandemic, and the food web held together under real stress. Chicken growers saw significant income interruptions, and while federal aid has helped repair balance sheets for other U.S. farmers, contract chicken growers have been left on the sidelines,” stated Holly Porter of Georgetown-based Delmarva Poultry Industry (DPIP “With this grant program, Gov. Carney and Gov. Hogan are delivering real assistance to farmers who suffered losses from COVID-19, and DPI applauds their commitment to the chicken community.”
According to DPI, chicken companies in Delaware and Maryland placed 45 percent fewer chicks in farmers’ chicken houses in early May, after quarantine measures and business closures took effect around the country, than those companies had placed two months earlier.
Six million chicks were placed in family farmers’ chicken houses in Delaware and Maryland the first week of May, a significant decline compared to the 10.7 million chicks placed on those farms in the first week of March. The drop in chicks placed represents lost income for Delmarva’s more than 1,300 farmers raising chicken in contractual agreements with chicken processing companies.
Contract chicken growers are ineligible to receive aid from the USFA Coronavirus Food Assistance Program (CFAP).
The poultry processing industry and states have come under fire for its actions during the pandemic.
Sections of Delmarva, including a portion of Sussex County around poultry plants saw an outbreak of the virus that was tied to side-by-side working conditions that led the virus spreading to workers and the community. Cases were also reported among growers and others supplying farms and processing plants.
At one point, the Centers for Disease Control and Prevention was called to assist the state in dealing with the pandemic and institituting procedures in the plant that would reduce the spread.
Delaware never responsed to a survey from the CDC regarding the number of deaths tied to poultry plants. However, the Washington Post estimated at least 17 deaths tied to plant workers on the Delmarva Peninsula.
State officials said the situation at the plants was touch and go for a time, adding that the number of deaths was not as great as first feared, due to the younger ages of poultry workers. Processing plants with older workers elsewhere in the country saw higher Covid-19 preys on the elderly and persons with pre-existing conditions.
It has since been reported that production has moved to mor normal levels, although the indsutry continues to see disruptions caused by fewer people in restaurants and school and workplace cafeterias.
Applications for the Delaware Contract Poultry Grower Grant Assistant Program are available online at agriculture.delaware.gov/grants-loans and will be accepted by the Delaware Department of Agriculture until December 1. Applicants must complete a W-9 form online (esupplier.erp.delaware.gov) prior to receiving payment.
