Do you want to start a turkey farm business and you want to know the cost? If YES, here is an estimated cost breakdown to build and open a turkey barn. Generally, poultry contracts offer benefits to growers such as reduced market risks, reduction of production responsibilities, lower operating capital requirements, and relatively predictable incomes, but turkey production operations do need substantial investment.
In recent years, construction, operation, and financing costs for Turkey barns in the United States have grown significantly. For instance, in 2003, the average cost of a 20,000 – square – foot multipurpose poultry barn in the United States was approximately $145,000 to $150,000. However, the current cost for comparable housing is more like $185,000 to $190,000.
With today’s costs, a farmer can easily invest more than $750,000 in an average size multipurpose poultry barn. Fortunately, lending agencies have been willing over the years to finance large initial investments for turkey and other poultry barns because of the reliability of cash flow and debt retirement.
In clear terms, turkey barns represent long – term investments (40 years or more); hence, it is pertinent to assess the cash flow potentials of these barns when significant cost factors change.
How Much Does It Cost to Build a Turkey Barn?
The cost of a multipurpose poultry barn in the United States is around $12.00 per square foot but may be more or less depending on barn type, pad costs and equipment used. Total cost for the 50-foot-wide barn exceeds the cost of a 40-foot-wide barn by approximately 14 percent, but the 25 percent additional floor space provided by the wider barn results in reduced cost of about 10 percent on a square foot basis.
Note that Four 50 – by 500 – foot barns would provide the equivalent floor space of five 40 – by 500 – foot barns but at a reduced cost. By leveraging these numbers, four 50 by 500 – foot barns would have an initial investment cost of $840,000 compared to $925,000 for the initial investment to provide the comparable floor space in five 40 by 500 foot barns (a saving of some $85,000 to the grower for the same floor space).
According to reliable data, the fixed cost of principal and interest for these barns are computed at an interest rate of 8.25 percent and amortized over a 15 – year period resulting in an annual charge of $43,074 and $48,895 for the 40 – foot wide and 50 – foot wide barns, respectively.
Even though interest rates for new barn construction have increased over recent months, they are still far short of the 10 percent plus rates experienced in the 1990s. The reduced interest rates over the last four to five years have helped maintain cash flow for new barn construction.
Estimated Cost Breakdown for Building a Turkey Barn
Owning a turkey barn can be both an exciting and lucrative adventure. However, the cost of building a commercial turkey barn depends on its design, size, and material specifications. Depending on the size of the building, a commercial turkey barn is capable of small to large – scale egg production, so you can build a barn to accommodate as low as 10,000 turkeys, and up to 200,000 turkeys. Nonetheless, the design analyzed is for 18,000 turkeys.
Note there are two main types of poultry barns; automated/mechanically ventilated barn, and naturally ventilated barn. Each design you pick might depend on many factors such as the weather/climate conditions in your region, the amount of budget (finances) you have for each of the design alternatives, the ground conditions, the availability of specific materials in your area and the amount of labour, time you want to cut or put in.
- Substructure – $33,883
- Ground Floor – $128,733
- Structural Frame – $13,661
- External Facade – $9,400
- Roofs – $8,831
- Floor Finishes – $21,421
- Electrical Installation – $9,867
- Air Conditioning – $3,854
- Heating and Cooling – $11,471
- Electronic Systems – $1,150
- Communications and Security – $69
- Others– $32,100
- Site Clearance – $540
- Soil Drainage – $1,523
- Fire Service – $691
- Electrical Installation – $19,782
- Preliminaries – $20,623
- Construction Contingency – $11,785
TOTAL CONSTRUCTION COST – $329,384, at $306.97 /m²
If you need to improve productivity and increase efficiency on your turkey barn, you will have to invest in technology. Note that an automated turkey barn has mechanically controlled systems for feeding, drinking, egg collection and manure removal.
The ventilation is also automated, adjusting and changing accordingly with the environmental temperature, wind pressure, humidity and lighting. This commercial barn will save you a lot of money, especially in reducing labour costs. One man can run and manage the entire farm via the control room and occasionally inspect the building.