Jody Hudson specializes in rural real estate for Long & Foster Realtors® in Rehoboth Beach and Lewes, Delaware.







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Chicken Farm Opportunities
and
Investment!

copyright by Jody Hudson 2000-2007

Delaware is one of the most popular places on earth to grow chickens.  Purdue Chicken Farms dot the land in Sussex County Delaware and hundreds, perhaps thousands of Sussex Countians make a living or an additional income by growing chickens in chicken houses for Purdue, Tyson's, Allen's, Mount Aire or the spot chicken market, and often on the same land with their home.

If you are interested in buying a chicken farm and joining this honorable, productive and rewarding lifestyle: I strongly suggest that you contact Delmarva Poultry Industry to seek information on where you can learn about chicken growing as well: dpi@dpichicken.com  Be VERY, very wary; this is one of the toughest businesses I know of and you need to be fully educated before you make a firm decision to become a chicken farmer... it is TOUGH to make a living but a great lifestyle.
 

Purdue Farms may have a program where you can purchase property and have a chicken farm operation built.  This takes quite a long time to qualify for and after that quite a long time to accomplish; a couple of years or more.  You may want to check with www.Purdue.com to see if they have a New Grower Program available now.

The farms we may be able to find will, almost certainly, no longer qualify for Purdue, http://www.perdue.com  even if they have been in the past, as Purdue requires very, very, expensive, extensive, and frequent, equipment upgrades and those alone may will be well above your budget. AND, if a Purdue Grower has the chicken houses up to date, they are seldom, if ever, for sale. 

There are several other poultry businesses you can grow for, other than Purdue, and you can also grow for the spot market. A good source of information is The Delmarva Poultry Industry organization: http://www.dpichicken.org 

Here are the local chicken companies I am aware of that you can grow for.
http://www.tyson.com  Tyson’s
http://www.townsends.com  Townsend’s
http://www.allenfamilyfoods.com  Allen’s
http://www.mountaire.com  Mount Aire

Mountaire Farms Healthy Poultry Products are recognized worldwide for highest quality chicken and chicken meal products. Whether it be private label store branded over-wrap products for their retail partners or their broad range of products for the international, food service or commodity wholesale markets, Mountaire Farms consistently meets or exceeds the the highest levels of the poultry industry.

When you are certain you want a Chicken Farm and ready to buy it and fund it.  Kate will search the market and see what is available currently, if anything. If there is nothing available, she can put a daily watch and search on the MLS for you.  I also have sources where I can possibly find a chicken farm for sale that is not listed for sale.  I must know that my buyer is ready, willing and able to purchase the farm however when I go to a seller in this way.  And, you, my buyer, must have the money ready and be aware of values so you can make a quick decision.  This is where a chicken farm or some poultry houses need to be sold quickly and where the sale must be certain.

FARM CREDIT - Mid Atlantic Farm Credit is the primary funding source; If you need funding from a lender, you will need to get that from Farm Credit: Contact Steven Morris 800-573-3028 in Georgetown DE or 302-856-9081 and smorris@mafc.com  It is not usual for other banks or other lenders to lend on chicken farms; Farm Credit is most likely the ONLY source of funding.

Please let us know how you plan to fund this purchase; if you need a lender please contact Steven, or one of the other Account Executives in the Georgetown Office of Farm Credit above and get that done so you know you have the money. OR, let us know if you have cash on hand or what other plan you have for the purchase.

We can also send you what has sold for the last four years so you can see what the market HAS been like. Appreciation was running about 14% per annum over the last several years (2000-2005) on farm properties well away from the beach but the appreciation rate over the last year or so (as of 2007) has been a lot less, about 1% to 2%. We will all be able to see what values are by figuring the time of sale on previous, similar properties and then figuring appreciation from there to now.

The economy of scale determines that a minimum of two large modern chicken houses, Broiler Houses, are a minimal for initial viability; four or six is better. This will require at least ten to fifteen acres for two houses as a rule and of course double that, at least, for more.  Land values are high in Sussex County Delaware and land value plus building value is substantial.

Many times the chicken farm, which may be available for resale, is only available with a home included and that takes the price up too. There have been some chicken farms available without homes in the last few years, they may have been sold and if so, Kate will have that in what she sends you, so you can get an idea of values; remembering to add the appreciation for the time since it sold.

Most agents and most sellers are not well versed in values of a chicken farm and usually they are listed for FAR more than they are worth. Farm Credit will keep you safe as to value of a farm and we will work with them for that reason as well. Often sellers and agents think that a chicken farm has development potential; that is almost never true because the land that chicken houses sit on are generally unqualified as to type of land, location, soils types, and legislation.  I have not seen a single one of the chicken farms that SAY they are suitable for development - that really are even possible to develop in over twenty years.  In addition to that the cost of removing a chicken house so that the land can be developed is prohibitive!!! Exceedingly prohibitive.

Again, the first and most important thing for you to do at this point is arrange funding as finding FUNDING is the greatest hurdle of all in purchasing poultry property.

NOTES to a prospective buyer:

Are you familiar with the importance and value to you of having your own agent – your own Buyer’s Agent - and if so are you looking to work with a Buyer’s Agent?  If you are somewhat unfamiliar with that concept here is an article that explains the importance of such: 
http://www.kate-jody.com/essays/buyersagent.html  

If you choose to work with us as your agents, we promise to do our utmost for you and in your favor, to give you our full allegiance and to respond promptly to you and ask the same of you in return!

The best way to get the best deal is to be knowledgeable about the market, have an aggressive Buyers Agent such as we are that will look out for your interests primarily, and to keep fine tuning your knowledge about the exact property you want so that you know the best deal when you see it.  The best deals on the market in any particular property right now are selling almost immediately as there are many people looking and all are looking for the best deal.  Properties not priced correctly, especially chicken farms may stay on the market three years or more... these may be ready to accept an offer and as your agent we can find that information for YOU when we are representing YOU...  

Take a good look at our various articles and essays to learn about our market here:

http://www.kate-jody.com/essays/index.html  and in particular

read

Low Priced Properties Are Available If You Know How To Buy Them

 Get a Buyers Agent for the BEST DEAL Possible

What the owner paid is a matter of public record in the court house but I personally don’t ever bother to even check as I know it does not affect what the seller will take for the property.

Another thing to be aware of: in our area the value of a property has little if anything to do with the structure value; this may even include chicken houses UNLESS they are fully updated which costs thousands of dollars per year.  Land value is usually between 75% and often up to 90% and even 100% of the value of a property here.  In other markets the structure can be 75% to 90% of the value and the land very little.  Therefore in our area fixer-uppers save you little if any money because all of the value or most of the value is in the land.

You will do yourself a favor if you use Kate and Jody as your Buyers Agents:

http://www.kate-jody.com/essays/buyersagent.html

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Click; Here are some Aerial Photos of Salt Water Sussex County Delaware aka Eastern Sussex County Delaware!

Country Homes... some on acreage.

Farm Land from 5 acres to hundreds.

Timber Land and even Cut Over Timber Land sometimes.

Rural Business opportunities and properties which are more likely to get zoning approval for such.

Click to Enlarge; Eagle Crest Aerodrome on Rt. One looking toward Broadkill Beach on the Delaware Bay.

Click to Enlarge; My Father Joe Hudson getting his Stearman BiPlane ready to take me up for aerial photography with my daughter Jazz looking on.  The Space Ship in the background is at Dad's Airport; Eagle Crest Aerodrome!

 

 

 

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Long Ago Sold: Properties That WERE For Sale

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Jody Hudson, The Rural Specialist
Brown's Real Estate Services Inc.
Coolsprings DE
302-945-8545 for Virgil Brown, the Broker ONLY

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