The number of farmers participating has grown from 35 farmers in 1998 to 56 this year. Those 56 farmers represent almost a third of all broiler producers in Franklin County. A single poultry house in north Alabama uses an average of 4000 gallons of propane a year. Growers that are paying 80 cents per gallon have saved a minimum average of 10 cents per gallon for fuel purchased through January compared to farmers who did not obtain fuel price protection. Dr. Gene Simpson, an Extension agricultural economist, hopes the high cost facing Alabama's poultry farmers is a short-term one.
Poultry farmers grow their birds on contract with larger companies.
The growers' biggest area of risk is in utilities gas and electricity. Gas amounts to about 40 percent of the growers' out of pocket expenses in normal years. This year, it is 55 to 60 percent. If utility prices jump, it impacts producers' profits. Propane prices running this high could slash some growers' net returns between 20 and 35 percent.