Financial Performance of Specialized Hog Farms, 1987

Abstract

Specialized hog farms--those with at least 50 percent of their production value from hogs and with at least $40,000 in total crop and livestock production—had more favorable financial conditions in 1987 than most other types of commodity specialty farms. Since 1985, net returns have increased 87 percent and the number of financially stressed farms has decreased 61 percent. Small farms with sales of$40,000 to $100,000 had the least favorable costs and returns. Production was concentrated In four adjoining areas: the Northern Plains, the western Corn Belt, the eastern Corn Belt, and the Southeast. Specialized hog farms in the eastern Corn Belt had the highest net returns and lowest costs