Poultry House Build and Purchase Considerations: A Reference Guide
Farm Management Resources
Are you considering building a poultry house or buying property with one or more existing poultry houses? Use this blog as a reference guide to prepare and inform your decision.
Please note: The information in this blog is intended to be used as a resource to assist in providing an overview of items that may need to be considered when purchasing or building a poultry house or houses in Virginia, West Virginia and Maryland. This is for reference only and required items may change at any time based on location, integrator and different regulations.
Purchasing an Existing Poultry House
If you are interested in purchasing property with an existing poultry house or houses, you will need to collect the following information:
Information about the property
- What is the current condition of the house(s)
- What is the past performance of the house(s)?
- Is or can the house(s) be updated to current specs?
- What is the water source on the property?
- Well: is the well sufficient to supply water to the houses?
- Municipality water: this will be an additional cost that will need to be factored into the financial projections of the farm
- Perform a water test prior to purchasing
- Ensure existing poultry houses can be insured for liability and collapse
Information from the Integrator
- Will a contract be granted for the house or houses?
- Past performance
- Cash flow of the houses
- Necessary upgrades to the house(s)
- The integrator will provide a specification sheet for the upgrades required
- This specification sheet should be provided to poultry equipment/service suppliers to obtain a quote for the cost of the upgrades
Please note: Some permits may be required when purchasing an existing farm. This is primarily the Virginia Pollution Abatement permit which requires a Nutrient Management Plan.
Building a New Poultry House
If you are interested in building a new poultry house or houses, there are several steps that will need to be completed before you break ground:
Consult or Hire an Engineer
- This is a good place to start when considering where to build a poultry house. An engineer can use topography and/or aerial photos to determine the best placement for the house(s), taking in consideration rocks, water, electric, etc. An ideal site has minimal excavating needs.
- Engineers can also assist with obtaining certain permits
- Determine potential setbacks and zoning requirements
Obtain Quotes/Bids for Drilling a Well
- Ask neighbors how deep their wells are – use an average when requesting quotes so that there is less of a chance of surprise overage fees for a well that had to be dug deeper than quoted
- Drilling your well needs to be one of the first steps to getting started during the construction phase. If there is a water problem, you need to know sooner rather than later, should plans need to change
- Identify the possibility of a back-up water source
Contact the Power Company Early in the Process
- How far will they need to run power?
- How many poles will be required?
- How much underground wire will be required?
- How much will the power company pay for and what will the owner be responsible for?
Obtain Quotes/Bids from Excavator
- If available, use the information provided by the engineer to obtain quotes and/or bids from excavators
- Be sure to ask for a “final grade” quote which will include any necessary ditches, culvert pipe, digging for a well line, cutting in a road and other road improvements needed (stone, etc.)
- Poultry integrators and/or engineers may be able to recommend local excavators
Obtain the Necessary Permits
- County building permit
- Entrance permit from VDOT (Va.), WVDOH (W. Va.) or MDOT (Md.)
- Electrical hook-up permit
- Erosion and sediment permit (Storm water management – your engineer can assist here)
- Pollution Abatement Permit from the Department of Environmental Quality (Va.), Department of Environmental Protection (W. Va.) or Maryland Department of the Environment (Md.)
Please note: This list is not meant to be all inclusive; check with your county and state for a list of required permits.
Ensure Adequate Farm Access
- The farm entrance road should be adequate and have the capacity to accommodate tractor trailers
- Consult with your state department of transportation for entrance requirements
- An engineer can assist with farm access logistic planning
Develop a Nutrient Management Plan
- Department of Conservation and Recreation (Va.)
- West Virginia Department of Agriculture (W. Va.)
- Maryland Department of Agriculture (Md.)
Additional Consideration Tips:
- If you have limited experience with poultry production, gain experience and insight by working on someone else’s poultry operation
- If you're building a new poultry house or houses, ask to visit existing houses built by contractors under consideration
- Talk to existing growers for tips and ideas
Obtaining Financing
The financing steps are likely to differ depending on your lender; however, having the following items when you begin will expedite the process:
- Current balance sheet
- 3 years of federal and state tax returns
- Estimated cash flow information from integrator
- Be prepared to discuss poultry experience
- A plan for the day-to-day operation of the poultry farm
- Quotes or bids for each necessary item for upgrading or building the house(s)
In many cases, financing your poultry houses(s) may include working with the Farm Service Agency (FSA) in addition to your primary lender. FSA provides loan guarantees and offers low-cost loans to certain agricultural producers.
If you are building new house(s), there will be regular construction inspections by a loan officer or appraiser to monitor the progress. If you are purchasing existing house(s), a loan officer may inspect the houses to determine the condition.
Integrator Contacts
- Cargill – www.cargill.com
- George’s Inc. – www.georgesinc.com
- Perdue Farms, Inc. – www.perdue.com
- Pilgrim’s Pride Corporation – www.pilgrims.com
- Shenandoah Valley Organic - www.farmerfocus.com
- Tyson Foods, Inc. – www.tysonfoods.com
- Virginia Poultry Growers Cooperative – www.vapoultrygrowers.com
Additional Resources
- U.S. Poultry & Egg Association – www.uspoultry.org
- The National Chicken Council – www.nationalchickencouncil.org
- National Turkey Federation – www.eatturkey.org
- West Virginia Poultry Association – 304-530-2725
- Virginia Poultry Federation – www.vapoultry.com