WASHINGTON, DC – Contract hog operations sold or removed an average of 8,600 hogs per farm in 2015, an increase of about 3,500 from 1998. By comparison, non-contract operations sold or removed an average of 5,217 hogs per farm in 2015, an increase of about 3,700 from 1998.
The removal, or depopulation, of hogs from farms has distinctly different effects on contract operations and non-contract operations. Contract operations do not incur lost value from inputs invested in depopulated herds, whereas non-contract operations stand to bear depopulation and disposal costs as well as the entire costs of foregone hog sales, including costs associated with inputs (such as feed costs) that have already been incurred.
While this research predates the COVID-19 pandemic, it can provide insight into potential impacts of depopulation due to the closing of processing hog plants during the COVID-19 pandemic.
(SOURCE: Economic Research Service)