Is Contract Poultry Farming A Way To Make A Living?
This page is designed to help newcomers understand and be able to question whether or not contract poultry farming is a viable way to make a decent living. Being close to that business, I am able to help someone sort through the process of deciding what to do about his/her future farmland. Contract Poultry Farming is defined thusly: Poultry companies enter into an agreement (contract) with the prospective farmer, for the farmer to raise poultry for the poultry company. The poultry company then pays the farmer for growing them. The poultry company delivers the small [chicks] to the farmer and the farmer takes care of them until sale. Several issues have and are now occurring that may make poultry farming less and less lucrative.� First, the farmer ties up his/her own land. Many things can be planted on farmland, but once poultry houses are put up, only poultry can be grown. Second, there is the initial buy-in of the houses and equipment. Usually, most farmers are not affluent enough to not have to borrow the money to get started. To say that starting up (or keeping up) a poultry business is expensive, is a HUGE UNDERSTATEMENT. Third, water for the poultry is usually demanded to be from a WELL. Poultry, believe it or not, drink up a lot of water, especially in the summer, or water is sprayed through foggers. You need not be a geologist to understand that drilling lots of wells would financially burden a farmer. Fourth, The removal of the poultry litter is becoming troublesome.� Intricate detailed records have to be kept about how and where the litter goes after it is removed from the houses. Just finding a place for it to go can be a problem. Fifth, there is the problem of dead birds. Dead birds create a large problem for most poultry farmers, as they do not decompose as fast as poultry manure. Also, if the farmer experiences poultry mortality he/she has lost all money the birds would have made. Sixth, contract poultry farmers COMPETE with other farmers upon sale of birds to see which farmer converted the least feed into the most bird growth. Seventh, contract farmers receive NO money for lost birds.� Neither on the farm nor at the processing plant (after being condemned) does the farmer make any money. Eighth, whole flocks of birds may become sick, causing bird mortality. Ninth, there are pressing HEALTH CONCERNS for the farmers.� Poultry do not grow in sterile environments. Poultry houses are dusty, mixed with the continuous presence of nitrogen in the litter, and possible air-borne pathogens. Generally, the poultry company does not cover the farmer with any type of insurance. Tenth, the poultry companies will usually honor the poultry placement of long-time growers first. Finally, the poultry companies have the farmers at a disadvantage because at any time the farmer only owns his land and poultry houses. Poultry companies are always looking to cut costs, and become more productive. This is to be expected.� No one argues that if the poultry dies, everybody in the cycle loses money. However, it is the farmer who usually feels the brunt of this "progress". Poultry companies are continually finding new ways to burden the farmer with expensive machinery that "must" be purchased. These new expensive items usually increase production only marginally, if at all. What is the farmer to do but comply with these demands, because if he/she doesn't, THE CONTRACT CAN BE TERMINATED! In sum, these issues must be answered before a farmer rushes into a contract to poultry farm for any company. Poultry companies will bring you into their contract without telling you how much supply or demand there is for what you will be raising, borrowing money for, and adding your hard earned sweat to. It is YOUR land, YOUR money, and YOUR business sense.� |
