Published: September 21, 2009 05:12 pm      

Some former chicken growers still hanging on, but just barely

Purchase of Pilgrim’s Pride by JBS could offer hope, however

Bruno Garcia has eight chicken houses on 30 acres in McAlpin that have been empty since his contract with Pilgrim's Pride was canceled after the company filed for Chapter 11 bankruptcy protection in December.

Garcia said his bank told him something needs to be done soon, either foreclosure on his million dollar mortgage or a loan modification to continue paying on a farm that is nonoperational.

"I'm holding off foreclosure right now," said Garcia.

Garcia said his bank told him the value of his property has dropped 80 percent since October 2007. He said as it is now, his land is worthless with the chicken houses on them.

"Who's going to buy 30 acres of land when most of it has chicken houses on it," said Garcia.

He can tear the chicken houses down, but it would cost upwards of $400,000 to do so, he said.

Garcia, like many other local chicken growers, have filed damage claims against Pilgrim's Pride to try to recoup personal losses.

Most growers that were interviewed said they were told that JBS, the Brazilian beef producer that recently announced plans to acquire Pilgrim's, is going to offer up to 12 local growers with contracts. Garcia said he is skeptical though, because the contracts are reportedly for one flock contracts, and a signed contract would waive their rights to damage claims. For now Garcia has gone back to school to learn a new trade, and is hoping his damage claim is accepted by the courts.

"If I have enough to pay off all my debts and keep the bank off my back, I'll be happy," said Garcia.

James Fountain of Live Oak, had his contract canceled as well. He said there is nothing he can do but just sit and wait.

"We don't have no chickens and no money," said Fountain.

He said the future is uncertain if he can't grow chickens.

"There is nothing to do in Suwannee County," he said.

Mayo resident Celena Vasallo said she is afraid of the unknown.

"It's terrible, we're hanging on to see if we're going to lose everything we got or what," she said.

Vasallo has a $600,000 mortgage.

Jesus Martinez seemed to share the same sentiment as the others growers.

"The banks are breathing down our necks," said Martinez. "They're holding off to see what happens. If nothing gets settled with Pilgrim's Pride, I see them foreclosing, then I'm out on the streets."

Martinez owns 16 houses in Madison County with a $3.2 million mortgage. He has taken a part time job at a local auto parts dealer to pay bills. He said if he were able to restart his farm, it would cost $8,000 just for a deposit on electricity for the houses. Another $16,000 - $20,000 would be needed to heat the buildings in the colder months.

JBS acquired Pilgrim's in a $2.8 billion deal. It is not yet known what JBS plans to do with the local processing plant, or the growers.