How is egge and poultry producation different from most other Types of farming In the United States?

Egg and poultry production is different from most other types of farming in the United States because it uses contracts extensively. The egg and poultry farmer agrees to provide the management, labor, facilities, and equipment needed for a fee, but the product is owned by the other party to the contract, the food processor or broker. For other types of farming, the farmer and buyer may set a price for the purchase of a certain quantity of the commodity before it is harvested or marketed, but prior to the harvest, the product is usually owned by the farmer.

These agreements are called marketing contracts. For poultry and egg production, however, the contractor owns the product, not the farmer. Other types of farming, including cattle, hogs, and some vegetables may also have contract arrangements, but it is far more common in egg and poultry production.

A much higher percentage of the farms involved in these activities have contractual arrangements.

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