Trends in the U.S. hog industry's structure

The U.S. hog production sector has experienced extensive structural change over the past four decades, with hog farms becoming larger with more hogs per farm, more specialized in specific phases of production, and increasingly dependent on production contracts for the production and marketing of hogs and pigs.

From 1982 to 2022, the U.S. hogs and pigs inventory increased by 37% while the number of U.S. farms with at least 1 hog or pig in inventory decreased by 82%.

The average number of feeder pigs sold or removed on farms that produced them increased from 1,049 per farm in 1998 to 3,701 in 2020. Likewise, the average number of market hogs sold or removed on farms that produced them increased from 1,540 in 1998 to 5,433 in 2020.

From 2002 to 2022, the hog farm production types with the largest increases in numbers of hogs and pigs sold were farrow-to-wean (+80.3%) and finisher operations. On the other hand, farrow-to-feeder operations decreased by 79%.

The use of production contracts in U.S. hog production has become increasingly common over the last four decades. The December 31 hogs and pigs inventory accounted for by contractors and contract growers increased by 54% from 31.3 million in 2002 to 48.2 million in 2022. In contrast, the December 31 hogs and pigs inventory accounted for by independent growers decreased from 31.2 million in 2002 to 25.6 million in 2022, an 18% decline. Over the period, the share of hog and pig inventory accounted for by contractors and contract growers combined increased from 50% to 65%.

Hog farms became more specialized in hog production between 1998 and 2020, with the average percentage of total farm value of production from hogs increasing from 56% to 80%. Likewise, successively lower percentages of hog farms produced corn, soybeans, and small grains over the period. The increased specialization in hog production is also noted by the increased percentage of purchased relative to homegrown feed for hogs.