Issu e No.1 Spr in g 2021
A meri can
E-Edit ion
Poul try Farmer
Commerci al Poul try Farmi ng New s & Li f estyl e M agazi ne
In t h is issu e: -
Pou lt r y Far m er Spot ligh t Ret ir in g f ar m er r ef lect s on a lif e w ell lived in pou lt r y
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Wat er Pu r if icat ion , a Gam e Ch an ger
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How t o Valu e a Pou lt r y Far m
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Lon g-t er m In vest m en t in You r Far m 1
A meri can
Pou l t r y
Fa r m er American Poultry Farmer Magazine c/o American Poultry Co
Tel: 601-300-5320 AmericanPoultryFarmer.com
Got a product or service the poultry industry needs to know more about? Maybe you have some beautiful pictures of your operation or a great story to tell. We are always looking for poultry stories and information to share with farmers across America. Submit your information today!
General Inquiries info@americanpoultryfarmer.com 2
WEL COM E... At American Poultry Company, we are fortunate to work with farmers as farm brokers in the poultry industry. After talking with so many of you and hearing your stories, we decided to create a magazine for poultry farmers highlighting your hard work and contribution to feeding America's families. Our hope is that this magazine will shine a light into the daily life of poultry farmers and help make farmers aware of poultry news and upcoming changes impacting our industry.
Greg Gibson, Chief Marketing Officer American Poultry Company
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A meri can
Poul try Farmer Presents Farmer Spot light : A Retiring Farmer Shares His Life in Poultry page 6 Financial Trends: The Importance of Reinvesting in Your Poultry Business page 11 Ask t he Expert s: Methods Used in Poultry Farm Valuation page 14 Technology: Water Treatment is the Next Arms Race in Feed Conversion page 18 #APC_FarmLife: A Top Ten List from our Photo Contest page 21
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F A R M E R
Spot l i ght :
A Retiring Farmer's Thoughts on theIndustry
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By Clay Russell
?I never really considered it a job.? It has been said that if you do something you love, it won?t ever seem like work. Howard Hammons is the living embodiment of that philosophy, and at the end of a long and satisfying career in poultry farming he is ready to devote more time to a grandchild and serving his community. A resident of the Pineville community in Smith County, MS, Hammons grew up in the poultry business. His father operated several houses, and Howard was immersed in their operation from an early age. And when his folks retired in the 1980s, it seemed a natural step to pick up the baton and carry on. He bought his parents? farm in 1986 and stepped into the role of boss. ?The poultry industry ? you either like it or you don?t,? he says. And Howard Hammons liked it. He?s always raised broilers, and explains that he?s ?enjoyed watching how fast they grow.? The houses that were once his dad?s performed well but they were far from modern, and in time they
needed upgrades. The high cost of the necessary work didn?t make fiscal sense for decades-old properties, however, and Howard made the decision to move on, at least temporarily. But the draw of the poultry business was strong, and after a period away from it Howard decided to become involved again. And when he came back he did it in a big way: In the early 2000s, he built eight 50-by-500-foot houses and began raising birds for Peco. Several years later, a nearby farm became
available, and before long Howard found himself the owner of 16 flourishing poultry houses. Managing such an operation could present immeasurable pulls on a sole proprietor?s time. But Howard?s business thrived in part because of a great team. ?I?ve always been fortunate,?he says. ?I?ve had really good help on the farm. That?s allowed me to leave for a week or so now and then, since I always knew things would be in good hands.?
Mr. Hammons owned multiple farming operations that were sold in 2019 & 2021 by American Poultry Company. 7
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Many people have hobbies or pastimes apart from their professional lives; Howard Hammons has a unique extracurricular activity. He?s serving his fifth term as a member of the Smith County Board of Supervisors, setting policy and adopting a multimillion-dollar budget in service of the county?s 16,000 residents. Referring to his time in elected office, Hammons says, ?I hope I?ve made my county a better place to live.? Howard downsized a bit a couple of years ago, selling one of his farms. And when he hit the 65-years-old milestone recently, he decided to retire from the poultry business altogether. ?I thought it was the right time,?he explains. Howard has two children; his daughter is
a nurse at University of Mississippi Medical Center, while his son owns two poultry houses of his own. But the son ? between a high-school teaching job, raising show pigs, and his chickens ? chose not to expand. Elected office is still part of Howard Hammons?life, and county supervisors have a never-ending list of activities to attend to. And that grandchild will surely take up the rest of his free time.
Hammons photos taken by followell fotography
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Pou l t r y Cr ossw or d
Confident ial Farm Sales Before you commit to listing your farm for sale, give us a call to learn more about our process. We have the largest list of bank approved buyers looking for poultry farms.
Call or Text 601-300-5320 Professional Farm Brokers You won't find our team at the open-house eating cake! 215 State St McComb, MS 39648
American Poultry Company sells poultry farms in AR, MS, AL, and GA. Our marketing is second to none when it comes to selling farms. Due to our singular focus, we have more qualified buyers than sellers. If you own a farm and would consider selling it, we would like to talk with you. 10
Importance of
Reinvesting in your business
Th e I m p or t an ce of Rei n v est m en t Th r ou gh Ret r of i t t i n g Your poultry operation is more than a business; it?s your passion, your legacy, and your livelihood. To start and maintain this operation, you?ve used a lot of money, time, and energy and by doing so, you?ve made it successful. The work, however, doesn?t end there. As with any business, upgrades are critical to the continued profitability and future options available to your business. But you can?t just spend money without a plan. Instead, you need to research the various investment options that will help improve your poultry farm. Let?s take a closer look at some of the changes you can make with a reinvestment as well as the reasons you may want to. Retrofitting is the process of adding features and components to your farm that
weren?t originally there to enhance efficiency and processes. Retrofitting offers many options, all of which can significantly improve the operation of your farm making an impact on your business and finances. Technology is at the center of many retrofitting projects. New technologies now make it easier to maintain houses and optimize bird production. Some of the technological upgrades that you can make 11
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to your farm include adding new feeders, ventilation upgrades, and improved controllers. All of these work to your benefit by helping ensure proper health and nutrition. Not only will this keep you compliant with regulations, but it will also ensure that your birds reach an optimal weight in the shortest amount of time. If you choose to sell your farm and retire in the future, reinvesting is crucial. By reinvesting some of your profits in retrofitting, you increase the value of your farm, thereby building wealth for your future. By spending the money on retrofitting today, you ensure that you have a current business in the future ? one that is relevant and producing at an efficient rate. The more efficient your business is, the more profit you will make over the long haul. Reinvestment isn?t just about building your business and improving operations, it?s also about helping to minimize your tax liabilities. Reinvesting benefits your tax situation in several ways. First, it reduces your profits by increasing your expenses, lowering your overall tax responsibilities even while it helps secure your future wealth. But the tax benefits of reinvestment go far more into the future through a process called depreciation. Every year, you get to report equipment and property depreciation as an expense, which lowers your taxes. When you reinvest in technology that improves your farm and that technology, over time, increases in age and shows the effect of everyday wear and tear, its intrinsic value falls, a process called depreciation. Every year you can offset a portion of your taxable income with that depreciation. Planning for future replacements will help you with your depreciation on future income taxes.
Reinvesting is part of the business ownership cycle. If properly planned and maintained, your farm will continue to grow and produce for years to come. The money you reinvest back into your business will allow for expansion down the road which means you can push your farm into the next century and increase the opportunities that come your way. There are many ways to gain the capital necessary to reinvest in your farm and to decide what equipment and customization options you should choose. If you are interested in reinvesting in your poultry farm, give Josh Rice at Live Oak a call today! Live Oak Bank cannot provide tax or accountingadvice. You should consult your own accountant and evaluate your individual facts and circumstances.
Josh Rice (910)-292-4424 Vice President Live Oak Bank
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Ask the Exper ts Wh at's M y Farm Worth ? The Basics of Valuation One of the most frequently asked questions from farmers is the most obvious - ?W hat?s my farm really worth?? My answer is always the same - ?It depends on the farm, but I can tell you pretty quickly.? All farms are different, but when you understand how to use the financial and
market data, the value can be an easy thing to calculate in just a few minutes. Poultry farm investment is similar to investing in the stock market or any other asset. In order to profit in a sale, investors must know how to assess the value of the real estate, whether that?s through income, equity gain, or both. In the poultry farm sales business, accurate valuations are paramount to helping farmers and investors make better decisions when it comes to buying and selling. There are three real estate valuation methods used to predict value accurately: 1. Cost Approach 2. Sales Comparison Approach 3. Income Approach.
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The Cost Approach is a real estate valuation method that estimates the price a buyer should pay for a piece of property is equal to the cost to build an equivalent building. In the cost approach, the property's value is equal to the cost of land, plus total costs of construction, less depreciation. In essence, the appraiser determines what your farm would cost to build, then discounts that number for the farms age. The Sales Comparison Approach compares one property to other recently sold properties in the area with similar characteristics. This method accounts for the effect that individual features have on the overall property value. The Income Approach, sometimes referred to as the Income Capitalization Approach, allows investors to estimate the value of a property based on the gross income the property generates, with deductions for standardized estimates of taxes, insurance, maintenance, and labor costs. All three approaches to value are important, but for a poultry farm buyer, the income approach, and more specifically the cash flow analysis, carry more weight than all the rest. The cash flow analysis is what tells us how much money a farmer will make per year of farming. It is a very straightforward calculation. However, the complexity lies in assessing accurate estimates for the individual components of the capitalization rate, lending terms, and operating expenses, which can be a challenge.
period that lenders will offer, we can now estimate the total loan amount and sales price that is possible. We can essentially work the purchase price into the equation as the last step. Of course, there are farmers that I talk with who disagree with the valuation that I estimate. In the end, it?s only my opinion. Sometimes farms have a higher value because they can be used for another purpose (or because I forgot to carry the one!). But in most cases, poultry farming is a business like many others and the math doesn?t lie. Probably the greatest benefit this approach provides, is accuracy. If I can calculate the cash flow analysis, then we can confidently say that the property was priced at the highest reasonable price that a bank would loan money to a Buyer to purchase the farm. In a transaction worth millions of dollars, being accurate is as important as it gets. That?s why I love this business so much. On a daily basis I get to help hardworking, genuine people retire, buy bigger farms, or just change gears in life. W hat a reward to be a part of that experience!
by Neel Gibson CEO/ Broker American Poultry Company
For instance, if we can estimate a farmer?s net income, we can estimate how much he can afford to pay per year in debt service. Furthermore, if we know the amortization 15
SELLWITHUS WHYSELLYOUR FARMTOSOMEONE ONTHISLIST?
DON'TBOTHERWITHLONG-TERMLISTINGS... Poultry farms are expensive complicated transactions. You should never entrust a multi-million dollar transaction to anyone that isn?t a specialist. Any local real estate agent can quote you a price and say they have a buyer. It takes an expert to make sure you price the farm accurately and actually close the transaction. Our team of professionals didn' t become an industry leader by attempting to be an expert in every type of real estate. Our company has a single focus - w e sell commercial poultry farms. We do not require long-term listings, and the entire transaction can be private so as not to alarm farm help or the integrator during negotiations. All of our buyers are required to be prequalified, and our team is extensively experienced in pricing, negotiating, and selling poultry operations. It?s all w e do, and w e are w ithout a doubt, the best in the business.
- Private Sales - Fully Funded Buyers - Get Top Farm Value - Experienced Brokerage - Impeccable Service
OURPROCESS 1. Tell us some details on your farming operation. 2. We tell you the maximum amount your farm should be listed. 3. You sign a letter of intent that allow s us to show it to our clients. 4. We sell the farm and handle all steps from contract to closing. 16
American Poultry Company,LLC
601-300-5320 Licensed in: AR, M S, AL, & GA w w w .AmericanPoultryCompany.com
Amer ican Poul tr y Co. 215 State Str eet McComb, MS39648 (601)300-5320
ALABAMA FARMBUYERS
ARKANSAS FARMBUYERS -
Southwest, 4+ broiler, $2,000,000 Northwest, 6-12 broiler, $2,500,000 Northwest, 4-6 broiler, $1,500,000 Northwest, 6-8 broiler, $1,750,000 Statewide, 8-16 broiler, $4,000,000 Statewide, 6-8 broiler, $2,000,000 Statewide, 4-6 broiler, $1,500,000 Northwest, 4-6 pullet, $1,500,000 Statewide, 4-6 broiler, $1,200,000 Northeast, 8-20 broiler, No Limit
MISSISSIPPI FARMBUYERS -
Statewide, 4-6 broiler, $1,200,000 Northeast, 4+ breeder, $2,000,000 Statewide, 2-6 pullet, $1,700,000 Statewide, 3-6 broiler, $1,750,000 Northern, 8-12 broiler, $2,000,000 Northeast, 6-12, broiler, $2,000,000 Statewide, 4-8 broiler, $1,750,000 Statewide, 8-10, broiler, $1,775,000 Statewide, 2-4 broiler, $ 900,000 Central, 8-12 broiler, $2,750,000 Statewide, 6-8 broiler, $2,000,000 Northern, 6-8 broiler, $1,750,000 Central, 4-6 broiler, $1,300,000
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Statewide, 4-6 broiler, $1,200,000 Southeast, 3-4 breeder, $1,300,000 Central, 4-8 broiler, $1,800,000 Statewide, 8+ broiler, $1,750,000 Statewide, 2-4 broiler, $ 900,000 Southern, 6+ broiler, $1,700,000 Northwest, 4-6 broiler, $1,300,000
GEORGIA FARMBUYERS -
Statewide, 4+ broiler, $ 900,000 Statewide, 2-3 breeder, $ 900,000 Statewide, 4-6 broiler, $1,200,000 Statewide, 8+ broiler, $1,750,000 Southwest, 6-8 broiler, $2,000,000 Statewide, 4-12 broiler, $3,000,000 Southwest, 6-12 broiler, $1,775,000 Statewide, 6-8 broiler, $1,500,000 Central , 8-12 broiler, $2,000,000 Central , 8-10 broiler, $2,000,000 Southeastern, 2-4 broiler, $1,300,000 Southeastern, 2-4 breeder, $1,500,000 Statewide, 6+ broiler, $1,500,000 Central , 6+ broiler, $1,500,000 Central , 6+ broiler, $1,200,000 Statewide, 4-6 broiler, $1,500,000
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Water Puri f i cati on The next arms race in feed conversion A new and disruptive technology may soon be available for the broiler poultry industry that will reduce cost of production while at the same time improving quality. This innovative system has its roots in some of the most obscure writings of Nikola Tesla, a Serbian-American inventor of the 20th century, whose work studying the characteristics and effects of magnetic fields and electric induction theory have led to the development of many of the most important electro-mechanical devices in use today. This new device, a hydro-oxygen generator (?HOG?) is patented and has been the subject of some university-based trials on a limited scale that have provided very positive looking results showing significantly improved feed efficiency. The effects of oxygenated water in the raising of broiler chickens has been studied by numerous scientists which have shown very favorable results. One of the most 18
EMOH? comprehensive studies done to date (D. Shin, ?The Effects of Oxygenated or Hydrogenated Water on Growth Performance, Blood Parameters and Antioxidant Enzyme Activity of Broiler Chickens?, Poultry Science, Volume 95, Issue 11) determined that numerous positive results occurred when oxygenated water was supplied to broilers throughout their growth cycle. A second study (B Jung, ?Oxygenated Drinking Water Enhanced Immune Activity in Broiler Chicks and Increases Survivability against Salmonella Gallinarum in Experimentally Infected Broiler Chicks?) indicated that broiler chicks provided with oxygenated water were more likely to resist disease resulting in an increased survival rate.
Here is a summary of their findings with respect to the use of oxygenated water: -
Increased final body weight and weight gain. (Shin) Improved feed intake and feed conversion. (Shin) Reduced fat to body weight ratio and reduced abdominal fat. (Shin) Improved blood parameters including triacyglycedride, total cholesterol and LDL. (Shin) Significantly enhanced immunoglobulin. (IgG and IGM). (Shin) Significantly improved antioxidant effects. (Shin) Increased survival of chicks infected with Salmonella Gallinarum. (Jung)
Even though there are known advantages to supplying oxygenated water to broiler poultry, there has been no known commercial application to date, primarily due to the cost of oxygenating the water. Additionally, simply adding oxygen to raise the dissolved oxygen levels in water, has proven to be a very short-lived phenomenon, as the oxygen off gasses relatively quickly and is very hard to keep in solution. The HOG takes advantage of known science that passing an object, in this case a stream of water, through a magnetic field produces an electrical current which can act on the water to break down the size of the water clusters into much smaller units as well as actually hydrolyzing some of the
water molecules, breaking bonds between the hydrogen and oxygen atoms that make up a water molecule. It is believed that some of the hydrogen gasses off and the resultant free oxygen is left in the form of nanobubbles which are trapped between the remaining water molecules. We can see the nanobubbles being formed as they turn the water an almost opaque white. It is believed that since the oxygen nanobubbles are so small, their buoyancy forces are not sufficient to overcome the friction necessary to escape the remaining water clusters. While the precise elements of the internal reactions have not been measured with certainty, empirical results are strong and consistent. Hundreds of tests involving 19
passing water with a low percentage of oxygen saturation through a HOG, results in significant increases in the percentage of saturation of dissolved oxygen. If the water is recirculated so that it can be treated several times, water with no to very little dissolved oxygen will have oxygen levels raised to nearly or at 100% saturation. Additionally, the increased oxygen levels do not diminish rapidly and can stay in solution for an extended period, sometimes days, depending on the environment after treatment. Moreover, indirect proof of reduced cluster size is indicated in numerous experiments using treated water in reverse osmosis devices. These trials have resulted in pressures required to push treated water through the semi-permeable membranes being significantly less than that required for untreated water, sometimes up to one-third less. Similarly, field water penetration tests have yielded similar results with treated water penetrating compacted soil significantly faster than untreated water. While previous studies have used oxygen from various sources, the most recent one used the President hydro-oxygen generator itself. This study, Ted Bat kin is a fourt h generat ion farm er, conducted by a nationally recognized university, physicist , and invent or-ent repreneur local t o analyzed 504 birds, half using treated water and California?s cent ral valley. Ted is t he Founder half being control group. The study recorded body and President of Aequion and XTB weight, feed consumption and mortality. While the Laborat ories. study showed an insignificant difference in total body weight and mortality between the control groups and the treated groups, there was a significant difference in the food consumption rates (FCR) between the two. The control group FCR was determined to be 1.801, while the FCR of the treated groups was determined to be 1.703. Said another way, the birds consuming HOG treated water consumed approximately 0.5 lb. less on average than the control birds. While more and larger studies need to be conducted, it appears that this device could save as much as 500,000 lbs. of food per million birds processed. At $400/ton for feed, these savings could amount to $100,000 per million birds processed. Given that the top 20 producers in the U.S. process over 175 million birds per week, the savings could be staggering. As we further study this technology and conduct more and larger trials, we will continue to update the industry on our progress.
Ted Batkin
If you would like further information or would like to participate in upcoming trials, please contact Bowman Garrett at bgarrett@aequion.com 20
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Ph oto Contest
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Aunt Gay' s Pear Apple Pie SERVES 8 Prep Time: 20 minutes Total Time: 1 hour 20 minutes
Easy Pie Crust: -
2 cups plain flour 1 teaspoon salt 2/ 3 cup oil
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Mix the above ingredients together then add:
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1/ 3 cup of milk
Pie Filling: 26
Pastry for double-crust pie 3 medium ripe pears, peeled and thinly sliced 3 medium tart apples, peeled and thinly sliced 1 cup plus 1 teaspoon sugar, divided 1 teaspoon lemon juice 1 teaspoon ground cinnamon 2 pinches of ground nutmeg 3 tablespoons butter 1 teaspoon whole milk
Line a 9-inch pie plate with bottom pastry; trim to 1-inch beyond edge of plate. In a large bowl, combine the pears, apples, 1 cup sugar, lemon juice, cinnamon and nutmeg. Transfer mixture to crust; dot with butter. Roll out remaining pastry to fit top of pit; cut slits or decorative cutouts in pastry. Place over filling; trim, seal, and flute edges. Add decorative cutouts if desired. Brush with milk; sprinkle with remaining sugar. Cover edges loosely with foil. Bake at 350° for 30 minutes. Remove foil; bake 30-35 minutes longer or until crust is golden brown. Cool on wire rack.
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