Poultry Houses Are
ANDY ANDREWS
Lancaster Farming Staff
MANHEIM (Lancaster Co.)
Don’t think of them as merely
chicken houses. In reality, they are
“economic engines.”
"Every broiler house that we’re
turning five flocks over per year,
we’re generating an additional
$l3 million of economic activity
in the area,** said John Schwartz,
Lancaster County Cooperative
Extension director.
Schwartz spoke to more than 30
poultry producers and agri
industry representatives on Mon
day afternoon at die Penn Slate
sponsored Poultry Management
and Health Seminar at Kidder’s
Restaurant
What that economic engine, as
Schwartz described it, translates
into is increased household inoom
e, tax revenue, and money to allied
and associated industries not
just the feed mills and processing
plants but to the grocery, clothing,
electronic, and other stores that
make up the local economy. This
domino effect creates ripples that
have a huge impact on the local
economy.
"For every dollar of poultry
product we produce, that dollar
turns over in the community 5.33
times,’* Schwartz said. The
"5.33" is die "multiplier effect"
Based on economic studies,
according to die extension direc
tor, "we create about 47 jobs for
every $1 million in farm sales."
Schwartz provided an example
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of a typical broiler house that turns
out five flocks per year. That trans
lates to about 725,000 pounds of
poultry product At a market value
of 34 cents a pound (wholesale
dock price and dressing percentage
figured in), that means $246,500in
sales. In addition, 250 tons of
marketable manure is turned out
per year at a value of $6 per ton, or
a total of sl,sooper year. That cre
ates a total of $248,000 per year.
At amultiplier amount 0f533, tot
al impact teaches to about $133
million for every poultry house.
Each house, at those figures,
creates neatly 12 new jobs in the
community.
The figures increase as the flock
numbers increase. At six flocks per
year, 890,000 pounds of market
able chicken is turned out. This
translates into sales of mote than
$300,000, creating 143 new jobs
in the community.
Tax revenue increases. Farm
income for the broiler house
approaches about $7,500 per year.
The cost of the house alone, not
including all the equpment, is
about $84,000, and the budding
rent is about $27,000 per year. On
that house in the county, at 17
mills, teal estate taxes ate $1,428
per year.
For layers, Schwartz used a
round number of 100,000 layers
operating per year. At 22 dozen per
hen house at a marketable price of
47 cents (Pennsylvania Depart
ment of Agriculture figures), farm
sales reach $1,034,000. In addi-
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don, 2,200 tons of manure are
generated per year at a marketable
price of $6 per ton, or a total of
$13,200 per year. Total farm sales
are $1,047 million. At a multiplier
of 5.33, this creates an economic
impact in the community of mote
than $5.5 million, or about 49 new
jobs.
Economic research, according
to Schwartz, has indicated that the
economic activity generated as a
result of using confinement type
agriculture has three different
components. The activity has a
direct input, in terms of creating
jobs on the rite; indirect, in terms
of supporting the local service and
supply economy; and induced,
which includes a boost in spending
power of those employed, as well
as increased tax revenues.
Also, producers should think in
terms of the houses ss rents! prop
erties for birds which would
help them realize die economic
potential of the investment.
According to Schwartz, for
every $1 in farm sales, we create
$3.22 in additional wages in the
community and are purchasing
$2.13 worth of supplies (feed,
chickens, electricity, and paper
supplies). We generate 47 jobs for
every $1 million in farm sales.
“I submit that we’re saving
family farms,” he said, “because
in this area, by being able to put up
these chicken houses, we’re gener
ating additional cash flow that
these farm families need to meet
the living expenses for that family
or be bringing back in a son or a
daughter into the family farm,”
said Schwartz.
The housing creates an invest
ment of capital in the community.
“Once we make that capital
investment, we’re looking at a
good 10-15 years of production,’’
he said.
“I think that’s very important if
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‘Economic Engines’
we’re going to keep a strong, local
economy, the producer has to be
constantly thinking ’capital invest
ment’ if he’s staying in this compe
titive industry.”
One way is through helping to
change township and borough
ordinances that allow the producer
to put up confinement housing
through “permitted agricultural
Jersey Scholarships Available
REYNOLDSBURG. Ohio
The American Jersey Cattle Asso
ciation administers II scholar
ships each year for youth members
of the association.
Jersey scholarships are avail
able to youth who own at least one
registered Jersey animal and who
are accepted or enrolled in college.
Selection is based on financial
need and scholastic achievement,
as well as Jersey and related
activities.
The deadline for applying is
July 1. Applications are available
by calling Sara Gaetz at the AJCA
(614) 861-3636, or by writing to
her at the AJCA, 6486 E. Main St,
Reynoldsburg, Ohio, 43068-2362.
there are two Vi. Peterson
scholarships available to youth
who have completed at least one
year of college. Peterson has been
called the dean of dairy breed rep
resentatives for his 2S yean of ser
vice to AJCA.
There is one Paul Jackson
memorial scholanhip awarded to a
youth who has completed at least
one year of college. Jackson was a
longtime Jersey breeder, show
man, and herdsman who was
devoted to encouraging junior
interest in Jerseys.
Jersey youth who are graduating
from high school and have been
accepted by a college or university
are eligible to apply for a William
A. Russell scholarship. The Rus
sell scholarship was established in
Lancaster Farming, Saturday, Hay 18,1M6-A27
use” regulations. That way, con
struction approvals don't have to
go through township zoning
boards.
There is a township in Lancaster
that has such a permitted use,
according to Schwartz.
"We need to start to talk about
agriculture and farms the way we
talk about business,” he said.
1977 to honor Bill Russell a life
long Jersey enthusiast who served
as an area representative of AJCA
and National All-Jersey Inc., a
marketing offshoot
There are also two Jack Nisbet
Memorial scholarships annually
awarded to participants in the
National Jersey Youth Achieve
ment Contest
Nisbet joined the AJCA staff in
1941 as an extension director. He
served as executive secretary for
the association from 1943-47.
There also is an $l,OOO Stanley
Bansen scholarship to be awarded
to a student working on an
advanced degree either a mas
ter’s or a doctorate in dairy or
animal science, dairy manufactur
ing, or agricultural business.
In addition to these scholar
ships, there is also an ABS/Monis
B. Ewing essay contest sponsored
by American Breeden Service.
The cons test winner receives a
$5OO scholarship.
This year, the contest entries are
to written to address the question;
“Why do you feel the influence of
the Jersey breed is expanding, and
what will keep it going?”
To be eligible for that contest,
applicants must be 16 and 22 years
old, as of Jan. 1 of the contest year.
Essays should not be more than
1,000 words and are to be judged
on the accuracy of information,
creativity and grammatical
correctness.