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My original chicken shed started out with styrofoam insulation applied to the wall above the roosts and nest boxes. Unfortunately, the shiny surface on the outside of the foam proved to be too much of a temptation to the chickens and they managed to destroy it, little by little. When we redid the shed this past fall, we didn't put the foam back on the walls, since at some temperatures we had moisure problems because of the heat generated by the chickens on the roost.
Having kept chickens in both insulated and non-insulated sheds, I really don't think the insulation is necessary in Oklahoma. Even when it is so cold that the water dish freezes inside the shed, the hens do fine as long as they are actually roosting, because they know how to put their heads under their wing when they roost. Most roosters however don't put their heads under their wing to roost, which is why their combs sometimes get bluecomb.
My problems with chickens in cold weather has been with younger chickens that haven't yet started roosting and still pile together on the floor for warmth. Those on the bottom tend to suffocate when it is really cold.
I agree, but since he covered the insulation, he doesnt have the picking problem, and he also installed windows that he can open to vent the coop, so he has managed to make it a pretty good coop for fairly cheap. I have never had insulation in any of my coops, I figure chickens have made it for thousands of years without insulation so no need to start now. I just make sure there are no drafts.