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Clay County was created by an Alabama General Assembly act on December 7, 1866. Ashland became the county seat less than a year later on land that Hollingsworth Watts had donated for the construction of a courthouse. Ashland, named after Henry Clay, a 19th-century statesman from Kentucky, was incorporated and named Ashland in 1871.
The town grew rapidly in the early years. With the opening in 1899 of Alabama's first graphite mine, the town continued its growth. The town's growth ended after World War I, when graphite prices plummeted.
In the 1930s, the Great Depression and the boll weevil brought down the cotton industry. The community's main industry was forced to be abandoned by farmers. By the turn of the 21st Century, timber, poultry, and cabinet-making were the dominant industries.
The chicken business was one of Clay County's newest attractions. It started in the 1920s. Millions of chickens, eggs, and long chicken houses. Reverend Secelar Claxton Ray brought one hundred-day-old chicken to Clay County Fair in 1921. He put them under an oil-burning brooder. This was to highlight the benefits of having chickens on the farm as an additional cash crop to the cotton. Although this was a new idea, it gained the attention of local farmers. He had now become a full-time poultry farmer and named the farm Goodwill Poultry Farm and Hatchery. He purchased houses at Clay County's graphite mines and employed neighbors to help him build the hatchery, chicken houses, and additional tenant houses. The farm was located southeast of Ashland in Alabama, where the population had increased from two hundred to nearly one thousand in 1881.
