Contract hog production has been a growing portion of the pork industry especially during the past few decades. Production contracting involves an agreement between at least two parties. The agreement specifies the division of resources which will be used in hog production. They can vary by type of production, type of contract, and responsibilities of each contracting party. Contractors, who are usually owners of the hogs, generally provide the feeder pigs or breeding stock along with the feed necessary for production. Growers, those working in the production of animals, typically provide the facilities and labor and are compensated for their time and resources involved. Expenses such as veterinary costs or utilities can be paid by the grower,- owner, or shared as contracts vary. Growers are usually compensated or a per head or per pound of gain basis, though other types of agreements do exist.
Wind-Norton, Laura and Kliebenstein, James, "Expansion Plans in Iowa Contract Hog Production" (1994). Economic Staff Paper Series. 270.