That's definitely a part of it.
There was some move some years ago here in Ontario to push for a small flock exemption to allow for egg & pooultry sales outside the quota system for flocks under 300 bird. And I don't mean roadside sales, but market sales. So there has been some accommodation for smaller market players.
All the quota systems in Ontario have troubles moving farms generation to generation. You pretty much have to inherit a farm as the quota costs are pretty well impossible to surmount in addition to land and equipment costs, as well as working capital for fuel, fertilizer, seed, etc. Dairy has recognized that and there is a certain portion of quota that needs to go to new producers when quota is bought and sold. I don't know if the chicken meat and egg systems do the same.
From what I understand there is no path for the small flock program to get from 300 birds to full up full time. I'm sure 300 birds/year is still hobby farm. Nobody is earning a living on that.
yeah 300 birds only makes sense as a supplement to some other farming you're doing