By doing so, the contractor can ensure broilers of uniform size and quality that are more easily processed, thereby enhancing processing efficiency and lowering costs. A more uniform product is highly desired by consumers. The base payment is simply a fixed payment per pound of live meat produced. The incentive payment is a percentage of the difference between average settlement costs of all flocks contracted during a specific period and costs associated with an individual grower. If, however, an individual grower's cost per pound of live meat produced is above the average cost per pound for the pool of growers, that grower is penalized.
Contractors also use several methods to calculate incentive payments.
However, the overriding objective is to provide growers with enough incentive to manage the poultry enterprise in a way that maximizes net returns to contractors. Partial funding support has been provided by the Texas Wheat Producers Board, Texas Corn Producers Board, and the Texas Farm Bureau. Educational programs of the Texas Agricultural Extension Service are open to all citizens without regard to race, color, sex, disability, religion, age or national origin.