Chapter 2 - Entry and Experience in Broiler Production

The same survey previously referred to asked respondents for the number of years that their operation had been producing broilers. Only 4.5% of the farms, with 6.6% of the total production, had been raising broilers for 5 years or less (Table 2.5). In contrast operations that, by 2006, had been in operation for 6-10 years accounted for 20% of farms and 23% of production. At the other end of the spectrum, about a third of all operations had been in business for at least 20 years.

An operation’s age had a strong relationship with its facilities and finances. Older operations were smaller with much older housing and technology. Many older operations had no debt, while those with debt carried much less, per square foot of capacity, than newer operations.

New operations, in business for 5 years or less, had houses that were, on average, 11 years old indicating that many recent entrants bought out existing operations with older facilities. Just under half of the new operations in Table 2.5 also had new houses. Those operations carried higher debt loads - $6.52 per square foot, on average, compared to $3.03 for new operations with older houses – and 99% of their houses had evaporative cooling and tunnel ventilation.

Table 2.5 - Experience and broiler production.

Notes: Shares of farms and pounds sum to 100 when refusals are added (1.0% of farms and 0.8% of pounds)
Source: 2006 Agricultural Resource Management Survey, version 4, production contracts only.