Have you ever considered how to invest in poultry farming? Poultry generates over $70 billion in average annual sales in the United States alone. It’s clear to see why capital investors want to get involved with profitable poultry operations. At Sun Farmer’s Group, we have observed a variety of poultry farms, both with and without investors. In this article, we will discuss what to look for in a poultry farm investment, the pros and cons of investing in poultry, and how a solar power poultry farm can boost profits.
What Makes a Poultry Farm Investable?
In this article, we’ll assume you don’t want to start a poultry farm from scratch. Instead, you either want to invest in an already operational poultry farm or provide capital for a poultry farmer to expand their operation. In both scenarios, you aim to be a behind-the-scenes investor, not an operator. Let’s examine a few key factors to consider before investing.
- Do your own research. Poultry farming offers diverse opportunities, from bird varieties to operations. Understanding the industry’s processes, from production to sales, is crucial. Knowing a poultry farmer who can train you before investing is even better.
- You need a solid business plan. Modern farming is no different from any other business. To be profitable, farmers need a business plan in place that includes forecasting, projections, cost analysis, and goals. If you find a farm you want to invest in, make sure you review their business plan carefully and that it makes sense.
- Consider the market demand for poultry. Though poultry demand grows annually, you should understand the regional demand where you plan to invest. If the area is oversaturated, consider investing elsewhere.
- Check legislation and potential regulatory hurdles. The poultry industry is regulated on both the state and federal level in the United States. Just because a regulation isn’t in place today doesn’t mean it won’t pop up tomorrow. Look into trends in the industry and try to predict how legislators might impact the business in the future.
- Understand the capital requirements. Although you might be making a one-time capital investment into a poultry operation, you should know what the operator intends to do with that money and how much capital is intended to be used per year on normal operations.
Pros and Cons of Investing in Poultry Farming
Understanding the pros and cons of investing in poultry is critical. Below and some pros and cons you should consider before putting up the capital for any operation.
Pros of Poultry Farming
- Demand for poultry is growing. According to the USDA’s report in 2022, poultry is the world’s largest imported livestock commodity. Additionally, the demand for poultry is projected to continue to rise well into the 2030s.
- Poultry creates a diverse product offering. Poultry is one of the few livestock commodities that can be sold for both its meat and eggs and is widely consumed globally.
- Birds are a quick-to-market commodity. Broiler chickens can be ready to be sold for meat in as little as six to seven weeks after being born. Compared to cows which can take years before being ready for market, poultry farmers and investors can see a quick turn on investment with a much faster turnover rate.
- Nutritional PR is good with poultry. In recent years, chicken has become the healthy protein of choice for many people as the potential harmful effects of too much red meat have become more mainstream. This ties in nicely with its growing demand.
Cons of Poultry Farming
- The global poultry market is volatile. Many factors in the poultry industry, like feed prices, consumer behaviors, and diseases, are beyond a farmer’s control. These variables make month-to-month forecasting challenging, even for experienced farmers, despite steady demand growth.
- Compliance can be costly. State and federal regulations heavily govern the poultry industry to ensure food safety. Compliance can cost time and money.
- Environmental concerns are expanding. Intensive farming faces increased scrutiny for its environmental impact. Poultry farmers are increasingly expected to implement sustainable practices, which often require significant capital.
- Initial capital can be significant. Investing in a new operation can cost hundreds of thousands upfront, and more at scale. While turnover and sales are quick, a full return on investment may take several years.
Why Solar Powered Poultry Farms Are a Smart Investment
Poultry farms require a lot of electricity for heating, ventilation, and machinery, driving up monthly power bills and cutting into profits. Solar-powered farms turn this cost into a manageable loan payment, eventually eliminating it. This shift allows farms to run on solar energy alone, protecting them from rising energy costs and boosting investor returns yearly.
The Sun Farmer’s Group Difference
Sun Farmer’s Group is the first true turnkey solution for agricultural solar energy. Our proprietary program has brought all of the in-house expertise to the table in grant writing, financing, tax credit monetization, installation, and so much more. Unlike other companies, Sun Farmer’s Group empowers farmers with a no-money down solution that greatly reduces and eventually eliminates your power bill altogether. The future of poultry farming is as bright as the sun, and we’ll help you turn it into power!
Get in Touch
If you’re ready to learn more about how Sun Farmer’s Group can help you put more money in your pocket, call 877-417-3222 today!
