Production from more than 303 million broilers was the top contributor to Kentucky’s agricultural economy in 2018. Broiler production is highly energy intensive; fuel and electricity costs are the broiler grower’s largest variable expense. Records indicate that 20% to 30% of a grower’s gross income is used to pay the cost of heating, lighting, ventilation, and cooling.

USDA Rural Development and the Kentucky Agricultural Development Board have made some cost-share funds available annually for agricultural and rural energy efficiency improvements. Both programs have required an energy assessment as part of the cost-share application. Cooperative Extension Service engineers from the UK Biosystems and Agricultural Engineering Department were asked to provide technical assistance in the form of energy assessments for potential program applicants. In 2017 and 2018, UK engineers provided energy assessments for projects on 24 poultry farms that have applied for cost-share fund from one or both of the available programs.

 IMPACT – Growers used the energy assessments to apply for and receive cost-share funds to install energy efficiency improvements to their production facilities. Most farms had two or more potential energy efficiency improvements. Adding ceiling insulation and changing from incandescent to fluorescent lighting were two frequently applied improvements.  Those items usually had a simple payback of less than 5 years. Several farms also had potential energy savings from closing and insulating sidewall curtains, installing attic air inlets, or installing insulated doors over summer ventilation air inlets. 

Proposed projects for the 24 farms required an estimated $664,850 in total investment.  Approximately 30% of the total cost was supported by cost-share funds with growers contributing the remaining 70%. Energy assessments showed that the estimated annual value of energy savings was over $77,000 per year or $3210 per farm. The estimated simple payback for all projects was 12.5 years before applying any cost-share assistance or tax credits that was received by the growers.     

This project has been a collaborative effort with USDA Rural Development (KY Office), KY Governor’s Office of Agricultural Policy, and private grant writers.