In a dramatic turn, Tyson agrees to settlement with Oklahoma, joining Cargill in resolving claims that poultry operations in northwest Arkansas polluted the Illinois River watershed with chicken litter. The agreement, reached Thursday, softens the blow of a sweeping December federal ruling that had sent shockwaves through the region’s poultry industry.
From 30 Years of Oversight to a Seven-Year Plan
The December decision found Tyson and Cargill liable for pollution in the watershed and imposed strict, long-term requirements. Under that ruling, farmers contracted with the companies would have been monitored for at least 30 years by a team led by a special master to ensure compliance with rigorous chicken waste disposal and land application rules — and to track the impact on nearby waterways.
The price tag was steep and open-ended. Poultry companies were ordered to fund the oversight, starting with an initial $10 million deposit, followed by additional $5 million payments each time the fund dipped below $5 million.
The prospect of decades of liability and potentially uncapped costs rattled the industry. Some poultry companies began declining to renew contracts with growers in the region, leaving certain farmers without agreements and uncertain about their future.
The new settlement replaces that uncertainty with defined, one-time payments: Tyson will pay $19 million, while Cargill will contribute $6.5 million. A portion of the funds will still support a special master overseeing compliance, but for seven years — not three decades.
For growers, it is a reprieve, albeit a cautious one.
