OT-Investing in laying hen flocks

My neighbor just put up a new cage free layer house. He was telling me about how the company that they are contracted through with the eggs has investors who put in money for the flock. The investors are parteners with the farmer and get a cut of all the egg money. Apparently it is all managed by the firm that has the egg contract. Has anyone done this? I was considering looking into this. I would rather invest some of my money locally, and help advance agriculture, than invest in wallstreet, and the land of greed.

Sort of like a CSA?
That sounds like it would work but I would not expect a very high return on my money.
It's good to support local farmers.

If it works out for your neighbor it should work for you too.

The only downside I've heard is that you're at the mercy of the contracting company. if they pull the plug on you, you're stuck with a big expensive building and no way to make any money off it.

It sounds similar to what has been going on with the turkey industry here, for decades. Local guy usually puts up the buildings, hires an operator, and finds investors to finance each batch. Devil is always in the details. Some chicken houses are run similar in that the farmer finances the building, does the work, feeds the company chicks, and about time the building is paid for and he starts making good money, the equipment is worn out and has to be replaced. Just shoveling it for a different banker is all.

This system was used in Maine and worked until the money ran out.Right now the cost of layer pellets is 28 bucks per 100 pounds.I keep a few hens but I can buy eggs cheaper.

(quoted from post at 03:43:50 01/16/12) This system was used in Maine and worked until the money ran out.Right now the cost of layer pellets is 28 bucks per 100 pounds.I keep a few hens but I can buy eggs cheaper.

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For some reason, you don't get a dozen eggs here, only 10.... Just like you say tho.... You can pick up 10 from floorkept chickens for 80 cents (about $1.20?) with caged eggs a few cents cheaper and free range a little more... Always have the right amount of eggs, no washing, no soft shells, cleaning coops, and summer smells...... Was buying from a couple neighbors for about 50 cents more just to keep money in town but got tired of washing eggs and taking whatever they could scrape up (or "come back tomorrow")......... Smartest thing I ever did was give my chickens away..........

As far as running them big scale, if you wanna go thru life smelling like chicken poop, go for it.....

Cage free what a joke. Chickens running around in a shed in the dirt.

If I had a chicken building I'd buy my own hens. I had cows on a share lease deal for a while. They made me money and cut my risk but in the end I got tired of being under somebodies thumb. I now own my own cows and make my own decisions. I like it better that way.

(quoted from post at 05:01:37 01/16/12) Cage free what a joke. Chickens running around in a shed in the dirt.

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Not supporting either one, but there are two facilities close buy (2k max birds (??).... One is floor kept and one is cage kept. If it wasn't for thesign, you wouldn't know the caged place was there... On a damp, still day, you smell the cageless one before you ever see it.... Same with a couple of my neighbors that have 30 or less on the floor with a little yard.....

Hi Mike,

I have 8300 cage-free organic hens here in SW WI. I own my buildings, own my chickens, own my feed, and own the liability of how well or poorly the farm does. My birds have 1.75 square feet per bird in the barn. I do know my Co-op is looking for laying operations of 10,000 birds or less in Pennsylvania if you're willing to go Organic. I sell to Organic Valley.

My dad has 3000 pigs for Big Gain. He owns the barns and the poo, but they own the pigs, the feed, and the contract. He's fought with them for years over big things like not being paid for services stated in the contract and being told he has to do things not stated in the contract for free to little things like not keeping the propane tanks above 40% (he heats the barns with wood) or having the manure in the pit above or below a certain level. They once told him they were gonna yank the contract because he was hard to deal with. He just said he'd see 'em in court if they did. He's the bigger A-hole.

If you do it, make sure you READ the contract from cover to cover. Then have a lawyer friend of yours READ it. Be prepared to be the bigger a-hole. The company you contract with is not your friend. They didn't get rich by being friendly.

(quoted from post at 05:01:37 01/16/12) Cage free what a joke. Chickens running around in a shed in the dirt.

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Gene,

I bet we'd get better production out of you if we shoved you in a cage barely big enough for you to turn around - along with four other humans....

(quoted from post at 05:11:02 01/16/12)Not supporting either one, but there are two facilities close buy (2k max birds (??).... One is floor kept and one is cage kept. If it wasn't for thesign, you wouldn't know the caged place was there... On a damp, still day, you smell the cageless one before you ever see it.... Same with a couple of my neighbors that have 30 or less on the floor with a little yard.....

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Dave,

You're gonna have to explain to me why a chicken stuffed in a battery cage would smell less than a chicken allowed to roam on the floor or in a backyard. My farm is on top of a hill. There are expensive houses all up and down the next hill over to the south of me (we get lots of north winds). My wife's cousin is on one of those houses (town dentist) and he says he NEVER smells the barns. Nice thing about chicken smell over pig smell is it washes off. I take a shower and no one would ever assume I own a chicken farm.

If the local folks arnt making money off true free range chickens, then you probably wont either. The local folks are not making money off true free range chickens in Madison county Iowa.

I would actually be investing in the birds through the company contracting with the farmer,not investing with the farmer. The company that contracts with the farmer gets investers to help front the money for the birds,feed etc etc.

We kept 2,000 layers on the floor, no cages. We did have automatic feeder and waterers, but every thing else was done by hand. It was a full time job and more when we were raising our replacement flock. This was 50 years ago, but I'll bet the amount of work hasn't changed a lot if you keep them on the floor instead of cages.