Contract hog production has been a growing "portion of the" pork industry especially during the past decade. 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, by type of contract, and responsibilities " of each contracting' party. Contractors, who are usually the 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, the owner, or shared"-*'as contracts vary. Growers are usually compensated on a per head or per'pound of gain basis, though other types of agreements, do- exist.
Wind-Norton, Laura and Kliebenstein, James, "Size and Growth of Contract Hog Production in Iowa" (1994). Economic Staff Paper Series. 271.