JOHNSTON, Iowa (AP) — Iowa Agriculture Secretary Bill Northey said Friday he's willing to talk to other government officials about a soon-to-be-shuttered Sioux City meatpacking plant but private industry will have the final say on its future.
The John Morrell and Co. plant announced last week it would close this spring, eliminating more than 1,400 jobs. Aides to Gov. Chet Culver, state lawmakers and local development officials said they've held preliminary talks about having the government buy the outdated facility and raze it for new development.
Northey said he's willing to explore incentives to encourage commercial development in that part of the state but the plant's future should be decided by the private business. The government shouldn't bear the cost, he said.
"We've got to find private investors that are willing to do this," Northey said. "This is a business decision, this isn't something to be owned by us."
He spoke during a taping of Iowa Public Television's "Iowa Press" program to air later during the weekend. Northey was asked about the plant's future after parent company Smithfield Foods announced the facility would close this spring.
He said he's aware of talks for the state to buy the plant and conceded government can play a role in development of the site. But, he said there should be serious discussion before it's decided what role government will play — especially since it's unclear what interest there is among private investors.
"I have not heard of those in the private sector that will have to come forward with the hundreds of millions of dollars," he said.
What happens to the processing plant is important because of the role the livestock industry plays in the state. Iowa produces about $20 billion a year in farm commodities, and half of that is livestock. The state is the nation's largest producer of hogs, and the Sioux City closure is certain to hurt pork prices.
"I think it almost has to, because everybody, not just farmers but other processors around there know that plant is not buying livestock to process," Northey said.
Northey said he's worried about what the loss of the plant will mean for the region, particularly since demand for pork has dropped off nationwide.
"We'd love to see new processing, but we're not seeing growth in processing around the country," he said. "We're concerned about processing capacity."
