Motivations for Exiting Hog Production in the 1990s and Incentives for Re-Entry

A survey of Iowa farmers who quit raising hogs between 1991-1997 quantified the demographics of the enterprises and operators, motivations for leaving, and prospects for re-entering hog production. The median enterprise size was 500 head marketed a year, yet hogs accounted for 40% of farm income. While 30% increased another enterprise or off-farm employment, 45% reported simply working less. Economic forces were cited for quitting hogs, but over 80% of the farmers did not know their cost of production. Higher operating margins and restrictions on competition were needed before these farmers would produce hogs again.