The verb to lay means to put or place something down or to produce eggs.

The verb to lie means to recline or rest on a surface or to tell a falsehood.

The past tense of lay is laid, and the past tense of lie is lay or lied, depending on the meaning. The past participle of lay is also laid, and the past participle of lie is lain or lied, depending on the meaning.

In the sentence, Wada’s chickens produced eggs yesterday morning, which is a past tense action. Therefore, the correct word to use is the past tense form of lay, which is laid.