Ok so my chickens range in the back yard with our dogs all the time. Our dogs were even "chicken friendly" Today, I came outside to see two bodies on the ground. Two of my production reds were dead. I blamed our dog for an instance, but then i saw the real murderer. Our neighbors' terrier! I was fuming! I chased it around the yard trying to catch it. I locked the flock up. and burried the dead. Called Grandpa and he dropped of his .22 pistol. Well, we'll see how this goes.
Are you going to give the neighbors a chance to keep the dog out of your yard first? I'd give one warning, and one only. Then SSS is certainly the thing. I'd also ask for compensation for the dead birds. Glad it wasn't your dog. Ours is chicken friendly, too. He's a black lab, taught at a young age not to mess with my birds. Now when he's laying outside, they come and peck and scratch within inches of him. They weren't used to dogs when we first got them, though, so it created quite a ruckus the first time he went mouse-hunting in the coop.
I would not use a .22 pistol. Even a well placed shot might allow the dog to run home yelping and trailing blood, a sure way to get a visit from either the sheriff or an angry neighbor, perhaps both. A few years back a fellow here in OK shot a dog that was killing his calves. He then got in his truck and went over to tell the neighbor about it and in turn the neighbor shot and killed him.
I'd use a shotgun with some fairly heavy shot, #2's or BB's and I'd wait for a close range shot. I've had to put down several chicken killing dogs here.
Ox
They'll get a chance to keep the dog contained. It doesn't bother me that is was on our property, it bugs me that it was in our fenced backyard. I was livid!
I'd be angry too, if it were in my FENCED in yard! As far as going over and telling the neighbor if you shoot the dog? I wouldn't. Shoot, Shovel, Shut up. If neighbor comes asking, you can truthfully say you "haven't seen the dog in awhile". Hopefully they'll keep it contained and it won't be a problem.
Don't shoot the dog. Those bullets just keep on going. They always seem to end up in something you really didn't want to shoot, like your wife's new car or your hundred thousand dollar tractor or your best bull. And for sure, you don't want the bullet ending up in someone.
If you must put it down, be a little more creative. And then in the dark of the night, place the corpse in the road. After it has been run over a couple of times, call the neighbor with the bad news. Let him do the mortuary detail.
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That's why you ALWAYS know what's on the other side of your target. If it's between you and something else, you wait for a better shot. Honestly, I'd hate to put down a dog, too. Especially if it were my neighbor's. But if it's killing my stock or my flock, I'm well within my right to do so.