So, you’re trying to find a good commercial chicken farm for sale. Maybe you’ve already got your eye on one. What should you ask before you buy?
If you’ve purchased property before, you know that there are a variety of things you need to think about before putting your signature on a contract. But if you are buying a chicken farm for the first time, there are some specific questions you’ll want to ask to determine if this is the right chicken farm for you:
1) Which integrator is the farm under contract with currently?
Most commercial chicken farms are under contract with one of the large integrators, such as Tyson, Pilgrim’s or Perdue. Whomever they contract with currently would be who you would need to work with going forward. This is a complex arrangement and you’ll want to know the specific details before you buy a property. Work with a legal advisor who has experience in the industry and understands your rights and responsibilities.
2) What structures and land are included in the sale – and what is the condition of those assets?
How many acres? What’s the makeup of that acreage in topography and land usage possibilities? What buildings or structures are onsite and is there a home for you on the property?
A solid overall infrastructure is important for stable and efficient production. Some commercial chicken farms on the market are equipped with many of the structures, equipment and materials you’ll need. Once you know what is included, you can begin to assess the current state of those elements and determine what value they bring to your plans.
In particular, you’ll want to assess the condition of the chicken houses. Are they up to par? Do they need repairs or to be replaced? Do they meet the current requirements of the integrator? Those are just a few of the factors to think about.
3) Where is it located – and what does that mean for your potential business?
Location is always an important factor in real estate purchases, but for a chicken farm, it has an effect on your potential income. As a contract chicken farmer, most companies require that your farm is within a certain mile radius of one of their feed mills that serve their processing complexes.
