There are many things to consider before you decide. Not every farm is a good fit for every buyer. Gathering as much information as possible will help with your decision making process. Here are five tips to help guide you:
1. Start with online searches.
Even if you plan to purchase a farm nearby, looking at poultry farms for sale statewide can be helpful. Notice how much farms are being listed for versus their annual income. Also, look at the year the poultry houses were built, acreage, and extra features such as residential dwelling, barns, sheds, etc.
Do any of the farms require updates to equipment or buildings? Updates can affect the value of the farm as well as determine whether or not the project will have cash flow. Sometimes, a large amount of acreage or other ‘extras’ are hard to pay for with poultry income alone. Try to look at recently sold forms also. A little research on the front end will help when it comes time to make an offer or choose the right size farm that’s feasible for your situation.
2. Ask the locals.
Live in an area with existing poultry farms? Ask around and you can learn a lot about farm values, cost to build, cost of updates, expenses, along with how integrators and lenders interact with poultry farmers. Talk to level-headed people who have experience and knowledge about the poultry industry in your area.
Visit a friend or neighbor’s farm to get an explanation of what to look for when purchasing yours. Note the condition of roofs, trusses, equipment, etc. Learn about current updates and retrofit requirements by integrators and how they are customarily performed. Always practice applicable biosecurity procedures when visiting farms.
3. Consider the age of the poultry houses.
Both lenders and integrators are concerned with the age of the operation. Contact lenders to learn the maximum number of years they will finance a specific farm. Ask the integrator how much longer they estimate keeping a contract on the farm. Is the poultry company requiring updates? Will these extend the life of the the poultry houses? Is it difficult to obtain insurance due to the age of the houses?
While obeying biosecurity measures, make more than one visit to a potential farm and consider the condition of each piece of the operation. Write down, research, and discuss any concerns with the realtor, seller and/or poultry company representative.
