Producing Feeder Pigs on Contract: A Comparison

Kristi Hetland and James Kliebenstein

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: This report is based on a study of an actual feeder pig production operation. In 1988, the producers approached a few companies about farrowing sows on contract. Companies contracting in the area were offering two basic contracts. The first contract paid a mid-range outyardage fee, a large monthly sow-service fee and a production-based incentive. The.other contract offered a significantly higher outyardage fee and a production-based incentive, but it did not offer a sow-service fee.

Date: 1991-08-01
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