Production contracts come to the midwest's hog industry--what does it mean for farmers and bankers?

Jeff Walser

American Bankers Association, 1998, vol. 12, issue 01

Abstract: Agricultural lenders in the US Midwest are learning to work with a new method of organizing the hog industry - the production contract. The contracting of agricultural production is commonplace throughout the world. The hog industry continues to be a significant sector of US agricultural output, accounting for more than $13 billion in agricultural cash receipts to farmers in 1997. Under the traditional arrangement the grower assumes all production-related risks and all marketing risks. The hog production contract establishes a new division of labor. Under a finishing contract, a contractor supplies young pigs at about 8-to-10 weeks old to the grower who feeds them until they are ready for slaughter at about 6 months of age and weigh 250 pounds.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/336446/files/ers2022-23-0402.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:abajal:336446

Access Statistics for this article

More articles in American Bankers Association from American Bankers Association > Journal of Agricultural Lending
Bibliographic data for series maintained by AgEcon Search ().