A proposed water rate hike of 50 percent in Vincennes, Indiana, would be extremely harmful to turkey processor Farbest Foods, the president of the company told the Vincennes City Council during its April 11 meeting.

Farbest Foods, the city’s largest water utility customer, would end up paying another $700,000 annually if the rate increases are approved, Farbest Foods President Ted Seger said, according to a report in the Vincennes Sun-Commercial.

“It’s going to be difficult for us to absorb that,” Seger told the council. “And I would suspect that that kind of rate increase is going to be hard for the average household to absorb, too.”

The city has proposed its rate increases as it hopes to spend $20 million on a new drinking water plant and other upgrades to the water utility system. Seger, who told council members the company remains committed to Vincennes, suggested the council create a temporary review committee to examine the water issues, and asked that Farbest would have two representatives on the committee.

Farbest Foods, which according to WATT PoultryUSA is the fourth largest turkey company in the United States, opened its turkey processing plant in Vincennes in December 2013. Seger told the council that the company has been good to the community, providing more than 300 jobs and investing $100 million in the Knox County, where Vincennes is the county seat.

Farbest Foods is headquartered in Huntingburg, Indiana.