Release No. 0224.02   Printable VersionPrintable Version   Contact:
USDA Office of Communication (202) 720-4623
Alisa Harrison (202) 720-4623  

By
Agriculture Secretary Ann M. Veneman Regarding Chapter 11 Filing by Farmland Industries, Inc.
May 31, 2002

"The U.S. Department of Agriculture is working with Farmland Industries Inc. (Farmland) to ensure the continued orderly operation of its pork division. USDA will do everything in its power to protect the interests of individual pork producers during the reorganization of this farmer-owned cooperative.

"To do this, we will have auditing teams from USDA's Grain Inspection, Packers and Stockyard Administration on site at Farmland's three packing plants as well as at corporate headquarters in Kansas City. Auditors will be reviewing Farmland's payment practices and the assets available for payment if trust claims are filed under the Packers and Stockyards Act. The corporation also has a bond as required by the Act to ensure that it can meet its payment obligations. USDA has received no producer complaints regarding Farmland's payment practices.

"Farmland has assured us that they will continue to purchase hogs during this reorganization, and that their beef operation, Farmland National Beef, is not affected by this filing."

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