Homestead chickens

I have an opportunity to purchase a long term chicken egg business.  The business already has contracts in place for local food banks and they have consented to offer those contracts to me.

At present, the business is producing eggs from around 3,000 laying hens which are due to be terminated in April due to age.  This give a window to relocate the equipment to my farm and restock.

I have access to new chickens, however due to demand, they are more expensive than in the past.

The current owner, is willing to carry a portion of the total equipment with a down payment.  The payment request is for $50,000 or about a a quarter of the value of the sheds, feeders, shorting shed and some additional sheds for expansion.  The total value is $200,000 for the equipment, which is what the current owner paid about 20 years ago.
It will cost around $45,000 for 3,000 birds to restock, and with the purchase of the business will get me access to the new birds, which are limited due to avian flu.

It takes about 6 to 8 weeks for the birds to adjust and fully begin laying.  During that time they will still need to be fed a normal ration along with normal watering and care.

Contracts have been extended to me in continuance of the current owner which about 90% of the eggs are going to food banks in Boulder and Broomfield counties at a rate of $6 per dozen.  This can be expanded to an additional 3,000 birds as well as reaching to food banks in Weld and Larimer counties.  In addition, there is tremendous demand for eggs at restaurants and private sales as well as grocery stores.  Fulfilling the food bank contracts will help keep labor and transportation regular and consistent, with extra eggs normally being produced in summer months.

Enterprise analysis indicates that the business with a $50,000 down payment for the $200,000 will require an additional $125,000 to $150,000 for purchase of birds, feed and labor plus moving costs, and will become profitable with expansion somewhere around month 14 to 15.

Being a farm producer for many years, I have access to local feed stocks that would be imperative to reduce feed costs, of which the current owner does not have access at present.  This would increase sustainability as well, and give an opportunity to mix additional feed in the future to other small growers in the area and possibly become fully organic.

In addition, these buildings while rather large and extremely well built, it will aid in adding a means to treat our soils to increase the potential to move the buildings on a weekly basis to allow for more grazing options for the birds, while increasing the natural placement of chicken litter, which will add to our already expanding role in creating healthy soil.  It is noted that we are participants in the CDA Healthy Soil Initiative, and will fit well into our future plans of soil health.