The company retains ownership of the birds, and the grower is paid a return (usually about 3.5 cents to 4.75 cents per pound of broilers marketed) for labor and facilities. Contracts generally have incentive clauses for superior growers to earn extra money. These "bonuses" are earned by having lower mortality, producing more pounds of broiler on a given amount of feed, and having fewer birds condemned during processing than the average grower.
Cost of transportation is a significant factor and many companies specify a maximum allowable distance between a broiler farm and the feed mill or processing plant. Most contractors require a certain house design and size. They may also prefer certain types of equipment. Contract growers must learn what the housing and equipment requirements are before building. Before building or buying a broiler growout facility, growers must obtain written assurances from a broiler company that it intends to provide a contract.