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 US 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 contact production. For individuals faced with poor livestock returns, debt problems and equity erosion, contracting provided a method to overcome the fm^cial difficulties and to remain in operation (Christian et al). Hog contracting in the traditional hog production states of the Midwest has remained relatively,decentralized, while the Southern and Eastern United States has seen the development of larger (5000+ sow) contract operations.
Rummens, Michele; Kliebenstein, James B.; and Rhodes, V. James, "Size and Distribution of Contract Hog Production in Iowa" (1991). Economic Staff Paper Series. 221.