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USDA survey to assess profit of poultry
<!--Published:200703110345 Modified:200703102357--> By LULADEY B. TADESSE, The News Journal<!-- <table border="0" cellpadding="0" cellspacing="0" width="200"><tr><td valign="middle">
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The federal government has until now gathered little information by itself on poultry growers' finances. News Journal file/GARY EMEIGH <!--Begin Article4.pbo--> <!--ADDITIONAL PHOTOS --> <!--End Article4.pbo-->
<!--End Article2.pbo--><!-- EDITORIAL CARTOON --><!-- MAIN ARTICLE --><!--Begin Article1.pbo--><!-- MAIN ARTICLE CONTENT --> <!-- 03/11/2007
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For the first time ever, the U.S. Department of Agriculture is conducting a nationwide survey of poultry growers to figure out the cost and return of running a chicken farm.
While the United States is the world's largest producer and exporter of chicken, there is little financial information available on poultry farmers.
"Broilers are probably the largest commodity we have not hit in the earlier surveys," said Jim MacDonald, who heads the USDA survey on poultry. "This is going to help us understand what types of broiler producers have better returns than others. It also helps us think about where the industry is going in the future."
The survey could provide valuable information for Delaware's $844 million poultry industry, which ranked seventh in the nation in the number of pounds of chicken produced in 2005, the latest data available. That year, the state's 634 broiler producers grew a total of 282 million birds for Perdue Farms, Allen Family Farm, Tyson Foods and Mountaire Farms.
Final results from the survey are due in early 2008.
The information from the survey will be particularly useful in Sussex County -- the county with the highest concentration of broilers in America.
"It will detail out a lot of expenditures data, which will allow growers to see what the averages are versus what they are actually incurring," said Chris Cadwallader, statistician at the state Department of Agriculture.
Poultry farmers spend a lot money on capital investment to build poultry houses and buy computerized systems to control the environment inside. The trend in the industry has been to build larger houses with up-to-date equipment, which can cost farmers on average $280,000 or more per house.
Besides capital expenditures, the survey would capture information on household income. Often, poultry farmers have multiple sources of income. Some grow grain or other commodities on the side, while others supplement their income with a job off the farm.
The USDA survey, known as the "Agricultural Resource Management Survey," will collect data on 2,200 poultry farms in 17 states that combined raise 95 percent of the nation's chicken. A total of 225 farms in Delaware, Maryland and Virginia will be included in the study.
The Agricultural Resource Management Survey is the primary source of information used by federal officials and policymakers to understand the costs of being a farmer in America. Congress and others use these figures to calculate farm subsidies for corn, soybeans and other commodities.
Poultry farmers in general are not eligible for any federal subsidies.
In case of a major disaster such as an outbreak of avian flu, the government may be able to use information derived from the survey to calculate the losses suffered by the poultry farmers, Cadwallader said.
The government and states rely on information provided by the poultry companies and farmers to calculate farmers' income.
The survey also can provide more insight for state and federal officials considering litter management regulations.
"Part of the information will be on the cost impact of the producers," said MacDonald. Regulators would have a better gauge on the impact of tougher regulations on producers.
"We are always glad to see data," said Richard Lobb, spokesman for the National Chicken Council in Washington, D.C.
Lobb said information on poultry farmers' operations is unique because unlike other producers, such as soybean farmers, poultry growers neither own nor sell the chickens they raise. Their income is based on their contract with a poultry company and their ability to meet certain requirements including the weight and size of birds.
Many field researchers surveying poultry farmers most likely will conduct their interviews outside the farms, in local coffee shops and other venues, said MacDonald. Poultry growers are taking extra precautions to keep strangers off their farms to protect against diseases.
Contact Luladey B. Tadesse at 324-2789 or ltadesse@delawareonline.com.
http://www.delawareonline.com/apps/pbcs.dll/article?AID=2007703110307
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<!--End Article2.pbo--><!-- EDITORIAL CARTOON --><!-- MAIN ARTICLE --><!--Begin Article1.pbo--><!-- MAIN ARTICLE CONTENT --> <!-- 03/11/2007
-->
For the first time ever, the U.S. Department of Agriculture is conducting a nationwide survey of poultry growers to figure out the cost and return of running a chicken farm.
While the United States is the world's largest producer and exporter of chicken, there is little financial information available on poultry farmers.
"Broilers are probably the largest commodity we have not hit in the earlier surveys," said Jim MacDonald, who heads the USDA survey on poultry. "This is going to help us understand what types of broiler producers have better returns than others. It also helps us think about where the industry is going in the future."
The survey could provide valuable information for Delaware's $844 million poultry industry, which ranked seventh in the nation in the number of pounds of chicken produced in 2005, the latest data available. That year, the state's 634 broiler producers grew a total of 282 million birds for Perdue Farms, Allen Family Farm, Tyson Foods and Mountaire Farms.
Final results from the survey are due in early 2008.
The information from the survey will be particularly useful in Sussex County -- the county with the highest concentration of broilers in America.
"It will detail out a lot of expenditures data, which will allow growers to see what the averages are versus what they are actually incurring," said Chris Cadwallader, statistician at the state Department of Agriculture.
Poultry farmers spend a lot money on capital investment to build poultry houses and buy computerized systems to control the environment inside. The trend in the industry has been to build larger houses with up-to-date equipment, which can cost farmers on average $280,000 or more per house.
Besides capital expenditures, the survey would capture information on household income. Often, poultry farmers have multiple sources of income. Some grow grain or other commodities on the side, while others supplement their income with a job off the farm.
The USDA survey, known as the "Agricultural Resource Management Survey," will collect data on 2,200 poultry farms in 17 states that combined raise 95 percent of the nation's chicken. A total of 225 farms in Delaware, Maryland and Virginia will be included in the study.
The Agricultural Resource Management Survey is the primary source of information used by federal officials and policymakers to understand the costs of being a farmer in America. Congress and others use these figures to calculate farm subsidies for corn, soybeans and other commodities.
Poultry farmers in general are not eligible for any federal subsidies.
In case of a major disaster such as an outbreak of avian flu, the government may be able to use information derived from the survey to calculate the losses suffered by the poultry farmers, Cadwallader said.
The government and states rely on information provided by the poultry companies and farmers to calculate farmers' income.
The survey also can provide more insight for state and federal officials considering litter management regulations.
"Part of the information will be on the cost impact of the producers," said MacDonald. Regulators would have a better gauge on the impact of tougher regulations on producers.
"We are always glad to see data," said Richard Lobb, spokesman for the National Chicken Council in Washington, D.C.
Lobb said information on poultry farmers' operations is unique because unlike other producers, such as soybean farmers, poultry growers neither own nor sell the chickens they raise. Their income is based on their contract with a poultry company and their ability to meet certain requirements including the weight and size of birds.
Many field researchers surveying poultry farmers most likely will conduct their interviews outside the farms, in local coffee shops and other venues, said MacDonald. Poultry growers are taking extra precautions to keep strangers off their farms to protect against diseases.
Contact Luladey B. Tadesse at 324-2789 or ltadesse@delawareonline.com.
http://www.delawareonline.com/apps/pbcs.dll/article?AID=2007703110307