Let’s say that you want to start a farm, and you’re going to use that farm to replace your current income. That’s a beautiful goal, I love it, but where do you start?.
Whether you want to raise vegetables, beef, eggs or honey, the process is the same. We’re going to use broiler chickens for this exercise.
How Much Does a Chicken Farmer Make Per House?A Comprehensive Look at the Economics of Chicken Farming
Chicken farming is a major agricultural industry in the United States providing valuable sources of meat and eggs. But for farmers looking to get into the chicken business one of the most pressing questions is – how much can you actually make? In this in-depth article, we’ll take a comprehensive look at the earnings potential of chicken farmers on a per house basis, examining the key factors that impact profits.
Chicken Farming in the U.S. – An Overview
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The U. S. grew more than 9 billion meat chickens for 2020, worth about $17 billion A further 100 billion eggs were produced worth around $7. 5 billion.
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There are around 25,000 chicken farms in the U.S. The majority are contract farmers who raise chickens for major meat and egg companies. Independent farmers make up around 11% of the total.
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The average chicken farm in the U.S. houses around 127,000 birds. But farm sizes vary hugely, from a few hundred birds up to millions on industrial-scale operations.
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Alabama, Georgia, North Carolina, and Mississippi are the states that raise the most chickens. But chicken farming takes place across the country.
What Determines Chicken Farmer Earnings Per House?
Chicken farmer earnings per house are driven by a number of interconnected factors:
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Number of chickens: A farmer can make more money if they can raise more chickens. Each additional chicken adds revenue.
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Production costs – This includes chicken housing, heating, ventilation, feed, medicine, labor and more. The lower the costs, the higher the profit margin.
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Chicken weight – Heavier birds command higher prices for meat farmers. Efficient feeding leads to faster weight gain.
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Egg laying rates—The number of eggs each hen lays affects how much money egg producers make. Some breeds produce over 300 eggs annually.
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Mortality rates – Keeping chicken deaths low maximizes the number of birds that can be sold. Good welfare standards are key.
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Market prices – The prevailing prices farmers receive per pound of chicken or dozen eggs heavily sway earnings.
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Supplier agreements – Contract farmers earn income based on terms set by buyers. Independent farmers face more market volatility.
Average Earnings Per House on Small Chicken Farms
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Small chicken farms in the U.S. typically house up to around 16,000 birds. At this scale, average yearly earnings per house are in the region of $25,000 to $60,000.
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A small chicken farm with 2 houses each containing 5,000 birds could generate around $50,000 of revenue per house annually. Feed, housing and other costs would be around $30,000. This would leave a return of $20,000 per house.
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Small farms have higher costs per bird making it harder to achieve economies of scale. But niche free-range or organic production can boost margins through premium pricing.
Typical Earnings Per House on Medium-Sized Chicken Farms
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Medium chicken farms in the U.S. tend to house between 16,000 to 64,000 birds per house. At this scale, yearly earnings per house are usually $60,000 to $120,000.
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A typical medium farm with 4 houses of 32,000 chickens could see over $100,000 in revenue per house annually. With lower costs thanks to economies of scale, they may produce $75,000 in profit per house.
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Larger flocks spread costs, increasing efficiency. But medium farms may lack the brand power of small niche operators or the dominance of industrial players.
Per House Earnings on Large Commercial Chicken Farms
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Large commercial chicken farms in the U.S. commonly house over 64,000 birds per house, although numbers can run into the millions. Yearly earnings per house reach $150,000 to $400,000.
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An industrial-scale farm with vast houses of 500,000 chickens could generate $300,000 or more in yearly revenue per house. Highly efficient automated production can result in strong per house earnings.
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Vertical integration, strong buyer relationships and advanced technologies allow large farms to maximize productivity and profits. But they lack the strong community ties of smaller farms.
Key Factors Impacting Chicken Farmer Profits
Feed Prices
As feed makes up around 70% of chicken production costs, fluctuations in grain prices have a huge impact on profitability. Corn and soybean price rises quickly squeeze margins.
Housing Size
The number of birds that can be housed determines total revenue. New or expanded housing is costly but allows more chickens to be raised.
Bird Breeds
Genetics influence everything from meat yield to egg production to growth rates. Farmers must choose breeds suited to their production focus.
Processing & Distribution
Ownership of processing and marketing capabilities ensures farmers get the highest return on output. Vertical integration is increasingly common.
Economies of Scale
As farms grow in size, costs per bird decrease. Large operations gain buying power and efficiency. But diseconomies of scale can also occur.
Contract Farming
Contract farmers sacrifice margin for stability. But they can over-rely on a single buyer. Independent farmers have more revenue risk.
Future Opportunities in Chicken Farming
While chicken farming economics are well established, opportunities exist to improve profits:
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Free range and organic – Specialty production earns premium prices as consumers focus more on sustainability and animal welfare.
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On-farm processing – Selling direct-to-consumer or local restaurants provides more margin than commodity chicken sales.
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Data analytics – Tracking key metrics aids data-driven decisions on pricing, expansion and efficiency.
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Farm diversification – Offering additional poultry like ducks or turkeys smooths income and evens seasonal demand.
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Exports – U.S. chicken exports continue to grow, especially to Mexico, Taiwan and Iraq. Exporting captures higher prices.
The profit potential of a chicken farm ultimately comes down to astute management of the birds, housing, finances and market opportunities. While the figures vary based on scale, location and business model, chicken farming remains a sound and rewarding investment for many producers in the United States. Careful analysis of the metrics outlined here allows farmers to make informed decisions on starting or expanding their poultry operation.
Simple Math To Determine Farm Scale
You can use this dangerously easy math to get an idea of what your life will be like if you decide to raise chickens for meat full-time.
- Look at the market to see how much you can charge for a chicken that was raised the way you want it to be.
- You are targeting an average 30% profit margin. That means your costs are 2070% of your sale price when everything is added up.
- Price – Costs = Profit
- In order to help the business grow, you are going to put 20% of your profits back into it and pay yourself 20% of that.
Let’s Make $50,000 A Year Owning A Farm
We’re going to gloss over the fact that the average working-class income no longer supports a family. Too much to unpack there. As a random placeholder, we’re going to say that you need $50k a year to live the life you want to life. Who knows if that’s true? It’s just an example.
You have visited some local grocery stores and have taken notes on how much chicken is selling for in your area. For $8/lb, you can sell a whole chicken that you raised on pasture, which is the best kind of chicken you can get.
You are raising chickens to an average of 4. 5lbs in 7 weeks, which gives you a gross revenue of $36 per whole chicken. (My personal record is a $52 chicken at $6/lb).
Assuming that chicks, feed, grit, processing, infrastructure, advertising, admin, insurance, etc… will cost you $25.20 per chicken.
- Gross Revenue – Expenses = Net Profit
- $36 – $25.20 = $10.80 per chicken
You are splitting the profit between paying yourself and reinvesting in your farm business.
- $5.40 to you
- $5.40 to the business
Wooten/Laster Farm: The Ups & Downs of Raising Poultry
FAQ
How much money do chicken farmers make per house?
Some chicken farmers make as little as $35,090 a year on smaller farms, but bigger farms have been known to make more than $130,000 a year. If you want to know if a chicken business is profitable, how chicken farmers make money, and how much they make per house, read on.
How much money can a 1 acre chicken farm make?
Layer poultry focuses on egg production. Profit depends greatly on feed quality, health management, and egg output. A good idea to make a 1-acre farm profitable is to sell chicken eggs. Let’s say a chicken farmer has an annual revenue of $100,000 from selling 20,000 chickens at $5 per chicken.
Is chicken farming profitable?
With the latest technology and market strategies, chicken farming can be pretty profitable. However, the amount of money you make depends on a lot of things, such as the cost of feed, the chickens’ health care, and even the weather where you farm. Want to know more about what makes chicken farming tick? Let’s see below!.
How much money does a farm make a year?
At the median, household income from farming was $210 in 2021. Given the broad USDA definition of a farm (see glossary), many small farms are not profitable even in the best farm income years. Median off-farm income in 2021 was $82,809, while the median total household income was $92,239. Is raising chickens a lot of work?
How much does chicken farming cost a year?
The biggest recurring expense is feed, ranging from $5,000-$25,000 annually while labor, utilities, transportation, and insurance are other major ongoing costs. When you venture into chicken farming, understanding the profit margins is crucial for evaluating financial viability.
How to make a chicken farm profitable?
The easiest and one of the most common ways to make a chicken farm profitable is to raise chickens for their eggs. Selling eggs, especially if you prioritize organic and non-GMO, is an excellent way to start a chicken farm and become profitable quickly, as you can easily branch off into other types of farming from farming eggs.
How much money can you make from a chicken farm?
Annualized gross revenue per square foot resulting from 42 to 46 weeks of birds per year can range between $3.15 and $3.35 per square foot of grow-out space, with some new houses receiving slightly higher revenues.
What is the average profit per chicken house?
Depending on the size of bird produced, five to seven flocks per year may be grown per house with flock sizes ranging between 22,000 and 26,000. Gross income per house will generally range from $28,000 to $35,000 annually.
Is a chicken farm a profitable business?
Starting a poultry farm in 2025 can be quite a lucrative business venture, but it is important to consider the cost and potential profit before taking any steps forward.
How profitable is local chicken farming?
local chicken is profitable comparing the start-up and production cost to that of the commercial chickens. A mature local chicken can be sold between 7000 to 8000 naira ( $7 -$8) depending on the size and gender. And most of the time you barely spend half of this amount on raising them.