Don’t bid on a site until you know the essentials
If you bid or buy before you know the essentials of water access, soil composition and regulations/requirements, your finances are at risk. “Someone in New York was deep into their site plans and development before they started asking for bids for water wells. He discovered that the water table was very deep underground and there was very little aquifer. It would have been upwards of $500,000 to build a large enough water storage facility to handle the water demand on that site and it just wasn’t viable,” said Zac.
Don’t rush your project planning
“We see it often. People rush to try to get qualified for a loan with bare bones bids they’ve received because they want to get their project started, but then once approved for that bare minimum plan, they start including new details and ‘small add-ons’. A few hits of $5,000 here and there add up quickly and blow the budget – and the potential for profit,” says Zac. “Slow down and consider all the different options first and work your budget. You want a positive return on your investment.”
Do your homework when picking a builder
You need someone who is an experienced poultry house builder to implement your plans. They should be a reputable builder who understands what you need about the:
- region’s regulations and standards;
- requirements for the type of house(s) you need (broiler, egg, turkey, swine, etc.); and,
- experience and insight to build in flexibility for potential changes and needs.
It may feel like overkill to look forward into the future but the builder should relay to the grower why that should happen. “Agricultural and environmental engineers are planning for this. You see it especially on the broiler side where they are designing the strength of trusses for heavy snow loads and pre-framing side and end walls for future cool pad and tunnel fan expansions,” says Zac.
Don’t underestimate the need for automation and technology
Automation and technology needs to be part of your planning from day one – and beyond. Basically, all feeding, watering, and cooling processes are automated. Computerized houses are keeping the temperatures and wind chill effects within one to two degrees of the optimal. “Most poultry houses have better climate control equipment than many of our own homes,” says Zac.
You’ll also want to consider what other technology may improve your productivity and ROI. Zac states: “As an example, for table egg farms, they make automated egg packers that start at about $30 – $40k to acquire. It takes a farmer 8-10 hours a day to pack 30,000 eggs by hand but the machine only takes 2-3 hours to do that number. This is a no brainer. As Artificial Intelligence improves, so will the processes”.
Plan for now and later
The industry is learning and evolving. You’ll want to plan for what could be based on those changes, but not so far out that it blows your budget. Zac shared, “For example, I put in an extra fan in my chicken house for use now and in the near feature. But we also added rough-ins for other fans that could be added down the road. Chickens have been growing faster than ever due to successful breeding programs. The average daily weight gain seems to increase with every year that passes. Everything is measured and managed. Larger faster growing chickens means more heat production – so more fans are needed to displace that heat and keep the birds comfortable.”
You’ll also want to plan for your technology to be expandable or upgradeable. According to Zac, “You can spend a lot of money on a poultry house that’s designed for today. Unless you plan for expansion, you won’t have the capacity to grow for the future.”
Use your resources wisely
Work with your trusted advisors and experienced people like the lenders at First Financial Bank to put together plans that will help you be successful. They can work with you to better understand what is important now, while supporting your efforts for the future – and doing it within a budget that can more likely result in a solid return on your investment.
