Poultry Farm: How Is Zakah Calculated
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Fatwa No. ( 21068 )
Q: I have a poultry farm and its description is as follows: We have agreed with one of the large national institutions that has no competitor. This institution provides one-day-old chicks to my farm, and we raise these chicks with our own labor. The institution secures the feed for the cycle, and we have no choice in the timing of bringing in the chicks or the feed; rather, the scheduling is done systematically by the national institution. The duration of the cycle is from (40 days) to (50 days). Then the institution comes and buys the healthy chickens that have a suitable weight for them, and they distribute them to the retail stores. A. We buy the chicks from the institution. B. We buy the feed from the institution.
C. The institution buys the chickens from our farm. We have no choice in the prices of the value of the chicks, the value of the feed, or the value of the chickens. At the end of the cycle, approximately one month later, we receive a statement of account: the value of the chicks charged to us, the value of the feed and its cost, the value of the chickens, and we receive a check for the difference. The full cost of labor and the value of the chickens that died during the cycle, along with their feed, are charged to us. This system is approximately common to all poultry farms that are affiliated with working with this institution. My question, O honorable Shaykh, is: Is there an annual zakah on these farms, or is it according to the cycle, or on their profits if a lunar year has passed? If there is zakah, I ask that you explain it in detail and how it is done.
A: It is obligatory for you, whenever a lunar year has passed, to count what you have of chicks, and what you have of funds that are capital and profits, then to give out one-fourth of a tenth of it, i.e., what is equivalent to 2.5%; because they are goods for trade. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I have a poultry farm and its description is as follows: We have agreed with one of the large national institutions that has no competitor. This institution provides one-day-old chicks to my farm, and we raise these chicks with our own labor. The institution secures the feed for the cycle, and we have no choice in the timing of bringing in the chicks or the feed; rather, the scheduling is done systematically by the national institution. The duration of the cycle is from (40 days) to (50 days). Then the institution comes and buys the healthy chickens that have a suitable weight for them, and they distribute them to the retail stores. A. We buy the chicks from the institution. B. We buy the feed from the institution.
C. The institution buys the chickens from our farm. We have no choice in the prices of the value of the chicks, the value of the feed, or the value of the chickens. At the end of the cycle, approximately one month later, we receive a statement of account: the value of the chicks charged to us, the value of the feed and its cost, the value of the chickens, and we receive a check for the difference. The full cost of labor and the value of the chickens that died during the cycle, along with their feed, are charged to us. This system is approximately common to all poultry farms that are affiliated with working with this institution. My question, O honorable Shaykh, is: Is there an annual zakah on these farms, or is it according to the cycle, or on their profits if a lunar year has passed? If there is zakah, I ask that you explain it in detail and how it is done.
A: It is obligatory for you, whenever a lunar year has passed, to count what you have of chicks, and what you have of funds that are capital and profits, then to give out one-fourth of a tenth of it, i.e., what is equivalent to 2.5%; because they are goods for trade. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.