Contract hog production involves an agreement between two or more parties. The agreement divides responsibilities for supplying resources such as capital, labor and management. While contracting is not a new concept to U.S. agriculture, hog contracting represents a growing segment of the national hog production industry. The farm crisis of the 1980's created an environment advantageous to expansion of contract production. For individuals faced with poor livestock returns, debt problems and equity erosion, contracting provided a method to overcome the financial difficulties and remain in operation (Christian et al.). This paper will focus on the motivations for growers to participate in contract hog produdion. Also examined will be independent producers' reasons for not contracting, the satisfaction of growers with contracting, and the future output plans of contract production participants. Iowa results will be compared to other regions of the United States whenever possible. Information for the report was obtained from a nation.
Rummens, Michele; Kliebenstein, James; and Rhodes, V. James, "Motivations, Attitudes, Satisfaction, and Future Plans of Iowa Contract Hog Producers" (1991). Economic Staff Paper Series. 219.