Farmers Legal Action Group attorney Lynn Hayes has been traveling in Nebraska advising poultry growers about how to deal with potential contracts with Costco. Costco’s Lincoln Premium Poultry is putting up a processing plant near Fremont and will need nearly 100 producers to supply them birds. Hayes says now is the time for growers to work together to protect themselves as they negotiate the contracts.

She says it’s also important for growers to get their own lawyer and financial advisor and not trust the cash flow projections and capital expenditures provided by the company and the banks.

Hayes says it’s critical growers get a guarantee with their contract agreement.

She says most broiler contracts are very complicated in nature and past history shows a large number of them have not benefited growers.

Hayes says because growers are dealing with a large processing plant they’ll be contracting with, they need to make sure they have proper legal and financial representation.