News Update
Oct. 20, 2009

Pilgrim’s Pride Receives Early Antitrust Clearance From Federal Trade Commission and Department of Justice for Stock Purchase Agreement With JBS

Pilgrim’s Pride Corp. today announced that it has received early antitrust clearance from the Federal Trade Commission (FTC) and Department of Justice for the company’s previously announced stock purchase agreement with JBS USA Holdings Inc. (JBS U.S.A.), a subsidiary of JBS S.A.

Last month, Pilgrim’s Pride and six of its subsidiaries (the Debtors) filed a joint plan of reorganization and related disclosure statement with the U.S. Bankruptcy Court for the Northern District of Texas. Under the terms of the joint plan of reorganization, Pilgrim’s Pride has entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrim’s Pride to JBS U.S.A. for $800 million in cash.

Pilgrim’s Pride said that it anticipates the plan to be confirmed by the Bankruptcy Court in time for the Debtors to emerge from bankruptcy before the end of December.

Information about Pilgrim’s Pride’s restructuring is available at Pilgrim’s Pride’s web site www.pilgrimspride.com/ or via Pilgrim’s Pride’s restructuring information line at 1-888-830-4659.

As previously announced, the Debtors filed voluntary Chapter 11 petitions Dec. 1, 2008. The Chapter 11 cases are being jointly administered under case number 08-45664. The company’s operations in Mexico and certain operations in the United States were not included in the filing and continue to operate as usual outside of the Chapter 11 process.

— Release by Pilgrim’s Pride.

American Agri-Women Examin FairTax Plan at November Convention

American Agri-Women (AAW) will take a closer look at the FairTax Plan at their 34th Annual Meeting Nov. 12-15, in Salem, Ore. They have invited Tom Wright, spokesperson for true federal tax reform (now represented by FairTax, HR 25), to speak on this plan, which would revolutionize the American tax system. Tom will talk on Saturday, Nov. 14, after lunch, and is a gifted speaker who will entertain as he convinces you (or not) that the FairTax is the way to go. There will also be an opportunity to ask him questions. He is well-known for his radio and television talk shows, opinion editorials, and forums.

Other notable speakers will be David Kohl and rancher Jeanne Carver. Kohl will speak on Thursday morning, November 12. He is professor emeritus of agriculture finance and small business management and entrepreneurship in the Department of Agricultural and Applied Economics at Virginia Tech. A popular speaker for agricultural groups such as bankers, Farm Credit and FSA, as well as producers and agribusinesses, Kohl will speak about “The Pulse of the Economy and What To Do About It.”

Rancher/Entrepreneur Jeanne Carver, Shaniko, Ore., will headline the Thursday, Nov. 12 evening program. Her presentation is titled, “Imperial Stock Ranch — A Heritage Ranch Claiming New Markets.” The Imperial Stock Ranch is a family-owned and operated ranch in central Oregon that produces grains, hay, grasses, cattle and sheep.

The meeting, hosted by Oregon Women for Agriculture (OWA) will be in the heart of the Willamette Valley and capital city of Salem. OWA will be celebrating its 40th birthday this year and the state of Oregon is celebrating its 150th birthday. “Celebrating American Agriculture” will add to the festive spirit of their time together.

For more information please contact AAW president Marcie Williams at president@americanagriwomen.org, or visit the American Agri-Women web site at http://www.americanagriwomen.org/.

— Release by AAW.

Federal Conservation Funding is Good News

“The news on federal conservation funding this year is good,” says Jon Scholl, president of American Farmland Trust (AFT). “Congress made vast improvements to initial budget proposals, and we appreciate that Congress made this appropriation during difficult economic times. However, there is always room to do more when it comes to conservation.”

“Farms and ranches are a cost-effective place to make improvements in conservation and stewardship practices that help protect our air, land and water,” Scholl added. “Investing in conservation is a key solution to address the loss of farmland, reduced water quality and climate change.”

Overall, the Fiscal Year 2010 (FY10) agriculture appropriation includes the funding levels set under the 2008 Farm Bill for conservation programs, except for the Environmental Quality Incentives Program (EQIP). The program was limited to $1.18 billion, a reduction of $270 million. “Since it’s a working lands program, it encourages farmers to undertake the stewardship practices we want to see, from planting buffer strips near streams, add[ing] fencing to keep animals out of streams, and more,” Scholl said.

“A bright spot in the budget is funding for the Conservation Loan Program,” Scholl added. “This is a program AFT proposed in the 2008 Farm Bill that would provide a supplemental tool in our nation’s conservation toolbox.” Program funding was locked in at $150 million, with $75 million allocated to direct loans and $75 million allocated to loan guarantees.

Farmers and ranchers repeatedly indicate that conservation system costs limit their ability to apply suitable measures to their acreage. “While the 2008 Farm Bill increased the amount of cost-share funding for conservation, we know not every project that every producer wants to apply onto their land will be funded,” Scholl said. “Producers in the past that wanted to upgrade animal waste handling systems might not have been able to due to a lack of cost-share assistance. Now with the conservation loan program, producers who want to apply better stewardship practices can do so with government-backed loans. That’s great news.”

In terms of protecting working farm and ranchland, Congress was able to preserve funding for the Farm and Ranch Lands Protection Program (FRPP) at the level specified in the 2008 Farm Bill. “And it’s a critical time to maintain and expand the federal matching money to protect farm and ranch land. State, county, local and private funds are strapped with requests from farmers who want to protect their farms. Waiting lists at programs are growing,” Scholl said. “That’s why I say there’s always more work to be done.”

— Release by AFT.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.