A24—Lancaster Farming, Saturday, May 19,1984
Grange supports
prompt payments
HARRISBURG State Grange
Master Charles Wismer said the
Grange is pleased that the State
House Agriculture Committee
reported favorably on a bill that
would provide financial protection
for the state’s poultry farmers.
H.B. 2035, introduced by Rep.
John Broujos (DAdams), would
insure prompt payment to poultry
farmers under contract with pro
cessors or merchants by requiring
them to pay the farmers for live
birds or eggs within 14 days after
their delivery to the processor. The
committee passed the bill by a vote
of 14-3, sending the measure on for
full House consideration.
In the Pennsylvania poultry in
dustry, poultry and egg producers
often do business without any
guarantee of payment. Many
poultry farmers raise birds for
slaughter under contract with a
poultry processor where the pro
cessor owns the poultry, and the
farmer is paid for his labor after
the birds are fully grown and
delivered to the processing plant.
Many, but not all, contracts
specify when payment will be
made, yet some farmers have
waited as long as six to eight weeks
to be paid.
Under the Broujos proposal, a
merchant becomes liable for pay
ment plus interest on the 15th day
after delivery is made by the
farmer. A farmer who is not paid
in 14 days can declare his contract
void by written notice to the mer
chant, sell the birds on the market
within 90 days, and keep the money
owed him. Any money beyond the
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agreed price of the birds plus the
costs of selling them must be
returned to the merchant. If the
merchant does not comply, a
farmer also may take civil action.
Broujos said the two-week pay
ment period is “reasonable”
because processors are paid by
retail stores within a week after
the farmer initially delivers the
birds to the plant.
Rep. Roger Madigan (R-
Bradford), member of the House
Committee, said, “Farmers have
the right to be paid promplty. What
this bill actually does is reinforce
normal business practices.”
Wismer said poultry farmers
have been victims of some mer
chants’ abuse of the system. “Too
many farmers have relied on poor
contracts or handshake deals, and
have been left holding the bills,” he
said. He said the Grange plans to
push for passage of the legislation
in the State House.
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