The present invention provides an environmentally friendly housing for laying hens. A preferred embodiment includes a covered structure having perching area having a porous floor, a worm bed under the perching area in which worms feed upon the manure that falls through the porous floor, a back door for access to the worm bed, and nesting boxes for laying eggs. Some embodiments are modular and can be readily expanded in sections, with each section including the parts described above. Some embodiments include an enclosed yard area in which the hens can go outside the structure and still be safe from predators. Grain can be grown in a part of the enclosed yard, with irrigation for the grain being provided by a rainwater collection system on the roof of the structure.