CONTRACT BROILER GROWER RETURNS - A LONG-TERM ASSESSMENT

This study evaluates annual returns for a typical broiler house constr ucted in 1986 with a significant upgrade in technology in 1990. The re sults demonstrate the long-term nature of poultry house investments. T his facility experienced minimal early return, but returns became much more substantial after debt repayment. Projected returns to the growe r's land, labor, and management during maximum debt repayment years ra nged from approximately 3.0% of initial investment for a below average grower to nearly 11% for an above average grower. The model used in t his study indicate that returns for broilers were consistently less va riable and more positive than those for other selected agricultural pr oducts for the period evaluated. Broiler growers appear to have long-t erm returns equal to or greater than those of U.S. agricultural produc ers in general.