Do you find yourself wondering: How can I start a poultry business? Purchasing an existing poultry farm is one way to crack into the industry and embark on a profitable venture.
Below, we break down the steps involved in buying a poultry farm, from finding the property to securing financing.
Find the Farm
While there are many avenues to start poultry farming, purchasing an existing farm is a common choice. To do so, you’ll first need to find a farm that suits your needs and budget.
One of the simplest ways to find poultry farms on the market is to search the Internet. For-sale farms are usually listed online, with the ability to filter by price, size, and location. Online research can also give you general information about local market pricing and availability.
In your search, consider which type of poultry farm you’re interested in, whether it be a broiler, breeder hen, commercial egg, or pullet. Additionally, evaluate the condition of the farm’s houses and the need for maintenance.
Poultry integrators, local realtors, and lenders may also have information about active farm listings in your area. They may be able to help you finetune your search according to the type of poultry house you’re seeking, which integrator you may want to work with, and/or whether the property includes a family home already, among other specifications.
Secure Poultry Farm Financing
After pinpointing a poultry farm for sale, it’s time to explore your financing options. In the process of buying a commercial poultry farm, you’ll work with both a lender and an integrator. Typically, the integrator makes a loan payment directly to the lender out of your contract income.
Poultry farm loans are available for existing farms, new farm construction, equipment, and supplies, among other expenses. You may consider applying for different types of loans from the Small Business Administration (SBA) or Farm Service Agency (FSA), which offer specialized loans through qualified lenders to support new farmers and small business owners. Working with an experienced Poultry Lender like First Financial Bank’s team can help identify the best loan option for you and your situation.
Some examples include:
Small Business Administration (SBA) loans provide guaranteed loans to buy real estate and can even provide working capital. In particular, the 7(a) loans are the SBA’s largest financing program. Banks with the experience and expertise can provide these loans directly to you through the SBA Preferred Lender program. First Financial Bank is an SBA Preferred Lender.
The USDA’s Farm Service Agency (FSA) offers loans through its Farm Loan Program. These loans are intended for people who can’t otherwise obtain credit to purchase and start a farm. The FSA’s Farm Ownership Loans are available to purchase a poultry farm, cover closing costs, and improve farm buildings.
Working with an experienced lender like First Financial Bank can help you determine your eligibility for these loan programs and help you find the right option for your needs. They can also help you discover other solutions that may suit your situation better.
