Thank you for your understanding and suggestions, especially from those of you who have dealt with this breed and adopted older dogs. For clarification: I am not able to have an indoor dog or have 2 dogs. I think if she had one of her sister dogs here she would be much happier; I think just any other dog might be risky unless it was a puppy. My husband does not want one dog let alone two and after getting sick in the midst of raising a border collie puppy a couple of years ago, I know my heart cannot take raising a puppy either physically or emotionally.
This dog was not bred nor trained to herd in spite of her breed and she does not exhibit herding instincts. I realized border collies are going to herd something regardless, you, children, and certainly chickens but they much prefer horses, cows, etc. I found a home on a farm with cows and horses for my border collie simply because he was happiest herding and needed more to do. I do not sense this dog has any high herding instinct. She basically ignores the chickens. She was very happy and content to lay down by me and watch the sheep we visited but she should have been trained young to be valuable as a herding dog and she was not.
I don't expect her to go after foxes or to protect the chickens but a normal dog will bark at a varmit in the yard at least.
I can return her to the owner; I can certainly sell her, I can rehome her to someone with other dogs, etc. However I would like to keep her. She can be so sweet and loving but then she goes on these long rejection episodes. They have followed times when I have had to be gone for most of the day but they have also followed the times when she has had my full attention and we have seemingly had the best of times.
I was told to crate her or have her on a lease at all times and hand feed her after basically starving her out from under the porch. I can try that again though I have to pull her out of the crate or on the lease. I have rewarded her for coming with treats after I found something she liked. We can go back to that and I can just be patient until she hopefully comes around. I will spend as much time as I can with her and take her places to socialize her which she seems a bit stressed by sometimes but basically seems to enjoy. Walking a mile or so most days is not much of a problem. I can get her former owner to do some obedience training with us on recall.
Are there any other suggestions?
Sounds to me like you have a good plan in place. If training with the former owner is an option, I'd do it if it were my dog. I wish the two of you all the best.
