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Investing in a chicken barn?
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bob1968
Posted 10/16/2014 15:44 (#4130139 - in reply to #4129091)
Subject: RE: Investing in a chicken barn?


Not a chicken grower but in a chicken heavy area and lots of friends are chicken farmers. As a grain farmer I appreciate the chicken industry for buying my grain and the ready supply of litter for fertilizer. From the outside here's what I see: There was money to be made at one time. Now environmental regulations are increasing the cost of new operations. Technology is also changing rapidly and companies are requiring growers to upgrade equipment before it is worn out or paid for if it will save the integrator a few cents per pound. In my area there 5 integrators so you have a little choice of who you grow for and often farmers change integrators several times in the life of their houses. Here growers compete against each other in energy useage, bird weight, feed conversion, mortality, etc. Those consistently above average make money, average growers pay the bills, and consistently below average risk losing theor contracts. have a freind who owed $60,000 on a small farm. To help with the mortgate he built 2 chicken houses and ended up with a $300,000 mortgage. The mortgage is close to being paid and he can't wait to get out of the chicken buisiness. I always refer to contract poultry production as indentured servitude but I'm not sure if you can ever buy your freedom now. If there was real money to be made raising chickens the integrators would raise their own.
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