grower prospectus - nebraska communities united · typical poultry farms are made-up of between two...

Grower Prospectus WHAT’S GOING ON? Positioned squarely in the heartland of America, the State of Nebraska boasts a rich heritage built on a foundation of hard work, innovation, college football and old fashioned family values. In 2015 Nebraska State representatives approached us with their interest in supporting the development of a new industry that would bring new jobs, increase economic opportunities for its farming community and support the legacy of family farming in the state by providing its youth a profitable reason to return to their family farms. THE POULTRY BUSINESS - 101 From the National Chicken Council: “The chicken industry in the United States is one of the most successful sectors in agriculture. In a little over 50 years, the U.S. broiler industry has evolved from fragmented, locally oriented businesses into a highly efficient, vertically integrated, progressive success story increasingly supplying customers nationwide and around the globe. The modern chicken industry produces nutritious, wholesome, high quality products that became more affordable year after year. Much of the success of the industry can be attributed to a more efficient structural organization, improved production and processing technologies, and a continuing responsiveness to consumer demands.” Today’s large-scale poultry operations consist of four primary components – a hatchery, a feed mill, a processing plant and a reliable grower network. Successful operations work hand-in-hand with growers and communicate openly and often to ensure that both the grower’s and processor’s expectations are met. This prospectus is not intended to be a contract, however it should provide prospective growers with a preliminary estimate of what it could mean to be a grower with us.

HOUSING COMPLEX Typical poultry farms are made-up of between two and twelve poultry barns and are often built in increments of two. Each barn in our complex will house approximately 43,000 birds. On average, the Company will typically pull and process eight full barns worth of chickens a day. Consequently, our ideal set-up would involve farms in increments of four barns. Depending on zoning and setbacks, a typical 4 house farm will require 20 acres of land and an 8 house farm will require 30 acres, with the houses being set in a parallel pattern. HOUSE SPECIFICATION All poultry house specifications will be provided by the Company; each house will be built identically to optimize efficiency and minimize complexity. Houses supporting our complex will be 60’ x 600’ and will utilize the latest monitoring, bio-security and management technology NEIGHBORING USES Contract growers should avoid locating barns in close proximity to water where migratory birds may be present. People can track diseases from these areas back into the poultry operation which can result in significant mortality. OPERATIONS A 4 farm house operation will require one full-time employee to manage daily activities. Initial preparation for the house to receive birds is critical and includes cleaning and disinfecting the houses, spreading litter, preheating the broiler houses, and checking the feeding, watering and ventilation systems. On a daily basis, one hour of flock management activities will be needed in the morning and one hour in the evening per house. Activities will include collecting and disposing of mortality, keeping flock records, monitoring feed, water and environmental control systems and observing for possible health problems. A bird cycle will consist of birds aging for 46 days in the houses. A house will typically have 6 turns of birds per year, with each house having 14 days of downtime/ cleanout days between bird cycles.

The grower will own the litter and can utilize its value as they wish. Before building, a grower should design a litter utilization and dead bird disposal plan to meet the production plans of the farm. Growers should maintain the grounds and access roads around the poultry houses. Weeds and grass should be mowed on a regular basis to reduce rodent and other pest problems. JOINT EXPECTATIONS Contract growers are expected to provide land, housing, labor and utilities. Conversely, the Company is responsible for providing chicks, feed, grower training, technical expertise, veterinarian services and payment for services rendered by the contract growers. Fair and ethical treatment of animals in the care of our contract growers will be paramount. When questions around the treatment for diseases or other issues arise, we expect that growers will communicate and work with Company representatives to resolve them. FINANCING While financing for the operation is ultimately the decision and responsibility of the grower, we are happy to provide contacts and details of banks who have interest in assisting with financing.

PROFORMA BROILER HOUSE MODEL

4-House Broiler 0.8 8-House Broiler 0.8 Capital

Building $ 864,000 $ 1,728,000

Equipment $ 576,000 $ 1,152,000

Well $ 20,000 $ 30,000

Generator $ 35,000 $ 50,000

Grading $ 50,000 $ 75,000

Site plan $ 5,000 $ 5,000

Mortality composter $ 5,000 $ 10,000

Total capital $ 1,555,000 $ 3,050,000

Income - annual

Contract payments - annual $ 404,164 $ 808,328

Expenses - annual

Principle and interest $ 147,562 $ 289,430

Taxes and insurance $ 20,000 $ 40,000

Utilities: Electricity, diesel & natural gas $ 100,000 $ 200,000

Bedding and litter treatment $ 20,000 $ 40,000

Total expense - annual $ 287,562 $ 569,430

Net return - annual $ 116,602 $ 238,898

7.50% 7.83%

1. After reviewing the farmer prospectus and supporting documents, I would like to be considered as a potential grower for this project.

I clearly understand that by checking the box below, I am considered as an interested party, and that this is not a binding document.

☐ I am interested.

2. Including future expansion opportunities, what is the maximum number of barns you foresee yourself owning/operating?

☐ 2 barns, 10+ acres






3. Contact Form

First Name Last Name

Street Address Apt/Suite/Office

City State Zip County

Phone Number Mobile Phone

Email Address

Interested Party Document: Project RawhideThe Greater Fremont Development Council, in partnership with A-FAN, thank you for your interest in this opportunity.

To fill in this application electronically, visit the website bit.ly/ProjectRawhide

Applications may also be found on the Greater Fremont Development Council and A-FAN websites: fremontecodev.org/fremont/fremontecodev-aglenders becomeafan.org

5. Do you own or have access to acres for nutrient management? ☐ Y ☐ N

Interested Party Document: Lender Information

6. Contact Form

First Name Last Name

Name of Lender Institution

Street Address Apt/Suite/Office

City State Zip County

Phone Number Email Address

7. If you would like a follow up to this application, please provide name and email.

Applications may be mailed or dropped off at the Greater Fremont Development Council:

Greater Fremont Development Council

Attention: Barb Pierce

1005 E 23rd St, Suite 2

Fremont, NE 68025

For further questions, call Barb Pierce at 402-753-8126.

Deloitte Consulting LLP

Economic Impact Study: Project Rawhide

State of Nebraska

November 13, 2015

CONFIDENTIAL

CONFIDENTIAL – DO NOT DISTRIBUTE

November 12, 2015 2 Deloitte Consulting

1. Executive Summary

A Deloitte Consulting client is evaluating the statewide impact of the construction and ongoing operation of a large, state-of-the art poultry processing operation, including (1) three company-owned facilities totaling ~1,100 full time employees and ~$180M in capital investment and (2) contract-owned broiler, breeder, and pullet houses totaling ~125 full time employees and ~$136M in capital investment.

To determine this impact, Deloitte utilized an economic impact modeling software called IMPLAN, which identifies and quantifies any and all effects of a change in economic activity upon a regional economy. These effects occur either directly or indirectly, depending on project specifications entered into the model, and are further broken down into the following categories:

1. EMPLOYMENT – total jobs that will be created and supported by the project on an ongoing and temporary basis

2. INCOME – total increase in payroll for all industries supported by the project, including wages

and salaries of workers, self-employed individuals, and income received by private business owners, doctors, merchants, etc.

3. OUTPUT – total increase in production for all industries supported by the project, interpreted as

the total increase in sales value realized by a study area

Based on the economic impact analysis performed by Deloitte Consulting, the proposed investment is estimated to stimulate $223M in economic output during the construction period, representing a multiplier of 1.63, and an annual operations output of $1.2B during full operations, representing an output multiplier of 1.83. The anticipated income impact associated with the investment is $88M during construction, representing a multiplier of 1.50, and $239M annually at full operations, representing an income multiplier of 2.14.

Additionally, Deloitte Consulting estimates that 1,593 new direct, indirect, and induced jobs will be created during the construction period, representing an employment multiplier of 1.63. Upon full operations, an average of 3,499 direct, indirect, and induced jobs are estimated to be created and maintained, representing an employment multiplier of 2.84.



2. Project Overview Project Rawhide Operations Diagram

LABOR

Table 2. Staffing Requirements by Operation

Full Time Employees 2016 2017 2018 2019 Broiler Houses – Contract Worker - 110 110 110 Breeder Houses – Contract Worker - 9 9 9 Pullet Houses – Contract Worker - 6 6 6

TOTAL – CONTRACT OPERATIONS - 125 125 125



CAPITAL EXPENDITURE

Capital Expenditure for Contract Owned Facilities

Investment ($M) 2016 2017 Broiler Houses – Building Construction - $54 Broiler Houses – Machinery and Equipment* - $56

TOTAL – BROILER HOUSES - $110 Breeder Houses – Building Construction - $8 Breeder Houses – Machinery and Equipment* - $10

TOTAL – BREEDER HOUSES - $18 Pullet Houses – Building Construction - $3 Pullet Houses – Machinery and Equipment* - $5

TOTAL – PULLET HOUSES - $8 ANNUAL TOTAL - $136

3. Economic Impact Results

Broiler, Breeder, and Pullet Houses – Summary Results

The estimated economic impact of the Broiler, Breeder, and Pullet houses is as follows:

Table 14. Summary Economic Impact Results – Broiler, Breeder, and Pullet Houses Employment Income Output

Construction

Direct 417 $23,771,858 $61,927,769 Indirect 104 $6,353,185 $17,205,318 Induced 174 $7,103,023 $21,781,921 Total 695 $37,228,066 $100,915,008 Multiplier 1.67 1.57 1.63

Employment Income Output

Ongoing Operations

Direct 125 $50,248,658 $268,517,030 Indirect 446 $28,046,951 $163,198,793 Induced 448 $18,229,632 $55,912,306 Total 1,019 $96,525,241 $487,628,129 Multiplier 8.15 1.92 1.82

1,019 $96,525,241 $487,628,129



The estimated economic impact of Project Rawhide, including all three client-owned facilities, as well as the broiler, breeder, and pullet houses, is as follows:

Table 6. Summary Economic Impact Results – All Facilities


Construction

Direct 977 $58,798,460 $136,910,501 Indirect 205 $12,393,444 $34,401,594 Induced 411 $16,778,136 $51,451,669 Total 1,593 $87,970,040 $222,763,764 Multiplier 1.63 1.50 1.63


Ongoing Operations

Direct 1,232 $111,852,095 $650,152,876 Indirect 1,156 $81,707,931 $397,959,590 Induced 1,111 $45,272,953 $138,848,274 Total 3,499 $238,832,979 $1,186,960,740 Multiplier 2.84 2.14 1.83

Zoning, Permit and Setback Information

County

Permit

Required Setbacks

Chicken AU

Ratio

4-Barn AU

Equivelent

(172,000 birds;

1,720 AUs)

8-Barn AU

Equivelent

(344,000 birds;

3,440 AUs) Permit Timeline

Livestock

Friendly

County

Name of Zoning Admin/Board

Chair

Dodge YES

1/4 mile - 251-1,000; 3/8

mile - 1,001-5,000; 1/2

mile - 5,001-10,00

1AU = 100

Chickens (.01)1,720 3,440

Not more than 45

days, generallyYes

Bob Missel, Sup Chair,

402-727-1531

Jean Andrews - P&Z Admin,

402-727-2724

Saunders YES

Permitted by right if

under 125,000 chickens;

1/4 mile if larger than

125,000 chickens

1AU = 100

Chickens (.01)1,720 3,440

Not more than 45

days, generallyYes

Doris Karloff, Sup Chair,

402-625-2327

George Borreson, P&Z Admin,

402-443-8123

Cuming

YES - not a

CUP, only

registration

permit

1/4 mile - 301-1,000; 5/16

mile - 1,001-2,500; 3/8

mile - 2,501-5,000; 7/16

mile - 5,001-10,000

1AU = 100

Chickens (.01)1,720 3,440

LFOs are a permitted

right in the A-1 and A-

2 zone. Producer

needs to apply for

permit with county,

takes about 30 days

for processing.

Yes

Clarence Tichota, Sup Chair,

402-528-3468,

Garry Clark, P&Z Admin,

402-372-6001

Colfax YES3/8 mile - 1,001-5,000;

1/2 mile - 5,001-10,000

1AU = 100

Chickens (.01)1,720 3,440

Not more than 45

days, generallyNo

Gil Wigington, Comm Chair,

402-615-1004,

Becky Lerch, P&Z Admin,

402-352-8505

Butler NO n/a N/A N/A N/A N/A No

David Mach, Super Chair,

402-402-666-5667,

No P&Z Admin

Platte NO n/a N/A N/A N/A N/A NoJames Scow, Super Chair, 402-

563-4904 (clerk's office)

Polk YES

1/4 mile - 301-1,000;

3/8 mile - 1,001-5000; 1/2

mile - 5,000-10,000

1AU = 100

Chickens (.01)1,720 3,440

Not more than 45

days, generallyNo

LeRoy Gerrard, Comm Chair,

402-764-6811;

Chris Hayes, P&Z Admin,

402-747-2921

Stanton YES

1/4 mile - 751 to

2,000AUs; 3/8 mile -

2,001-3,500 AUs; 1/2 mile

- 3,501-5,000AUs

1 AU = 200

broilers (.005);

1AU = 400

Pullets (.0025)

860 1,720Not more than 45

days, generallyNo

Jerry Weatherholt, Comm Chair,

402-439-2911;

LaLene Bates, P&Z Admin,

402-439-2262

Contacts

mailto:[email protected]

mailto:[email protected]

Burt

Platte

Polk Butler

Dodge

Saunders

CumingMadison

Colfax

Stanton

Washington

Project Rawhide: County Map

grower prospectus - nebraska communities united · typical poultry farms are made-up of between two...

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