Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   

Agricultural News


New Study Highlights Benefits of the Partnership Between Contract Farmers and Chicken Companies

Tue, 15 Mar 2022 13:14:32 CDT

New Study Highlights Benefits of the Partnership Between Contract Farmers and Chicken Companies The National Chicken Council today released a study that presents the results of a recent broiler industry survey designed to capture key live chicken production statistics. In addition, the study summarizes several key trends in broiler production efficiency, returns and loan quality data.

"Raising chickens under contract is one of the best and most reliable sources of cash flow that helps keep families on the farm," noted agriculture economist and the study's author, Dr. Thomas Elam, president of FarmEcon LLC. "The business partnerships between chicken farmers and chicken companies are mutually beneficial, viable and profitable. The real winner is the American consumer, though, who benefits from the healthiest and most affordable protein in the meat case."

The study represents the most recent publicly available government data and a new survey from companies responsible for 83 percent of total chicken production in the United States. A summary of the findings include:
· According to the most recent USDA data available, the $68,455 median income for chicken farmers was significantly higher than both all farm households and all U.S. households. Sixty percent of chicken farmers earned household incomes that exceeded the U.S.-wide median.
· The top 20% of contract chicken farmers earn on average $142,000, significantly higher than the top 20% of all farm households ($118,000) and all U.S. households ($101,000), according to the same data.
· In terms of broiler farm loan performance, data show significantly lower charge off and deficiency percentages for chicken farmers compared to all agricultural loans.
· Responding companies reported significant waiting lists for those who would like to enter live chicken production or expand existing operations. There were 1,672 applications from potential producers and 335 expansion requests from existing farmers. These applications indicate a steady interest in entering contract chicken production.
· In 2021, only 6% of respondent's farmers left their company, including retirements. Of those, only 0.7% of farmers left due to contract termination.
· The health and well-being of the chickens has greatly benefited from the contract farming structure. In 2021, the average on-farm livability of a flock of U.S. broiler chickens was almost 95 percent. In 1925, it was only 82 percent. Farmers who furnish live chicken housing have captured this benefit of better chicken performance.
The performance-based contract structure of modern poultry production was instinctively designed to put the well-being of the birds as the top priority, as incentives are given to farmers who raise the healthiest birds, take risks and work hard. It incentivizes farmers to do their best, to compete, just like every other business in America or any other free market.

"On any given day, swings in the cost of feed inputs for livestock, things like soybeans and corn, could financially challenge a farmer," said Gary Anderson, a retired US Army helicopter pilot and chicken farmer in Alabama, in a recent column. "Changes in the end prices of chicken could, too. As a chicken farmer, I don't worry about that. Processors take these market risks for me - providing the feed and a baseline price for chicken - letting me focus on raising the flocks in the best way possible."

"What this data further show, is that the chicken industry should be looked at as a model, and not a target of unwanted and unnecessary regulations that are being discussed in the Biden administration," added NCC President Mike Brown. "The latest Consumer Price Index released last week marked the biggest inflationary gain since 1981. At a time when input costs are through the roof, is now really the time to be discussing regulatory burdens that would increase costs for producers and add more costs to already soaring grocery bills for Americans?"

The full study can be accessed by clicking here


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Youth Expo Sale of Champions Sale Order Available Here- Sale Set for 4 PM Friday  Fri, 17 Mar 2023 04:50:54 CDT
  • Rural Voters Dominated Vote to Defeat Recreational Marijuana March 7th  Fri, 10 Mar 2023 07:13:05 CST
  • Ron Hays Talks to Israeli Ag Tour Guide Colin Lotzof About the Miraclel of Ag in Israel  Wed, 22 Feb 2023 22:11:04 CST
  • OALP Members Experience First Hand View of Cutting Edge Drip Irrigation Technology as Israel Travel Ends  Wed, 22 Feb 2023 10:51:49 CST
  • OALP Members Get First Hand View of Cutting Edge Drip Irrigation Technology as Israel Travel Ends  Wed, 22 Feb 2023 10:50:10 CST
  • Oklahoma Ag Leadership Program Sees Fruit, Beef and Dairy Production North of the Sea of Galilee in Israel  Mon, 20 Feb 2023 21:56:02 CST
  • Oklahoma Ag Leadership Program Sees Diverse Farm Operations in Jordan River Valley of Israel  Sun, 19 Feb 2023 21:17:30 CST
  • Israeli Tour Guide Mark Kedem Talks About The Cultural Aspects of What Class XX of OALP is Experiencing   Sat, 18 Feb 2023 22:17:23 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       
          
       
       

    Search OklahomaFarmReport.com

    © 2008-2024 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.