As others have said it is percent by weight.Since I posted that question this morning, I spoke with a feed farm. I was told it was by volume, i.e., a 50 lb bag has 16% protein and 3 lbs of that feed also has 16% protein.
If it is by weight, the 50 lb bag of feed has 16% protein, and 3 lbs of that feed had .48% protein. We just want to better understand the needs of our chickens and what we are feeding them.
So in a 50lb bag of feed that is 16% protein there will be 8lb of protein (8lb is 16% of 50lb).
If you take that same feed, 3lbs of the feed will have 0.48lb of protein (0.48lb is 16% of 3lb).
It doesn't matter how much of the bag you look at, it will always be 16% protein.
You cannot really even figure out what volume is because the volume changes as the feed settles. A 50lb bag however always weighs 50lb.
Hope that helps, and as others have said, 16% protein is like a minimum acceptable level for chickens - many of us feed much higher levels of protein to keep our hens happy and healthy. I try and give 20% feed but I can't always get it so sometimes they get 18%.