Poultry farmers facing high electric costs

MARYLAND – Bird flu has already taken its toll on local chicken farms, but now there’s a new problem in the mix – rising electric costs.

Some growers we spoke with Wednesday said if electric costs continue to rise, chicken farming will no longer be sustainable.

“With everything that’s going on with the increased costs with the AI, farmers are already stressed with the cost of everything, so this is just another thing that’s going to increase our costs of operation,” said Far Nasir, a poultry farmer in Pocomoke.

For Nasir, electricity accounted for 33% of his costs last year. That’s on top of increased insurance payments, property taxes and costs of goods.

From last month to this month, he said his bill has more than doubled.

“Instead of spending money on my business to fix something, something that’s needed, I have to now take that money and spend it to pay the electric bill,” he said.

During an Eastern Shore Delegation meeting last Friday, a representative from Delmarva Power said most increased costs are due to the colder temps and an increase in usage from customers.

Oak Shelter Farm Owner Virgil Shockley said his bill is also inflating.

“It’s nothing to have a $4,000 dollar electric bill for a flock of chickens for me,” said Shockley. “That’s 20-25% of your check goes for the electric. It’s unsustainable, you can’t do that.”

Many farmers feel that if something doesn’t change, you could see some growers go out of business.

“Farms may close because of these costs,” said Nasir. “It’s really that important because its just a lot of money for us.”

Shockley also adds that we could see the price of chicken go up due to rising electric costs, as well as what’s going on with the High Path Avian Influenza outbreaks.

Delmarva Chicken Association members who are Delmarva Power customers can join an electric buying group where you lock in a power generation price for three years.

A spokesperson for the Delmarva Chicken Association estimates it saves between 10% to 15% over the course of the contract.