Laying hen farms regarded as  a  rural  capital intensive business which could generate higher income than  other farming such as rice farm,  but  some previous  research also reveals   high risk on laying farms. To deal with the risks some   factors  must be managed simultaneously   such as : egg and  feed  price fluctuation, raising operational  and investment cost, decreasing farm productivity (hens day production /HDP).  This research is aimed  : (i) to design   Monte Carlo simulation  that can explain  proper  capital management (ii) describe effect of variables fluctuation to farm performance.

Research method was survey  by interviewing small and medium  rearing scale  laying hen farms in southwest Java Indonesia. The data gathered is analyzed  on the basis of  capital structure and  the relation to long term profitability using Monte Carlo financial simulation. Research result  show that simulation model can explain rearing capacity, feed price, egg price    variables  relate to farm performance. Proper operational cost  management  on small scale laying hen  farms still  insufficient  to support long term  farm’s  sustainability. Higher cash flow  in  laying hen farms  tends  to make farmers raise their family expenses  rapidly .