Chrisian Boessen University of Missouri

Publish Date: December 14, 2012

This publication is a follow-up to the Pig Information Gateway publication “Evaluating the Contract Finishing Opportunity Part 1 - Is Contract Swine Production Right for You?”, which mainly examines non-economic issues related to the decision to grow hogs under production contract. This article is intended to assist with actually evaluating economic and legal aspects of the document that establishes a relationship with a contractor.

Publish Date: December 14, 2012

Increasing numbers of farmers, aspiring farmers and rural landowners are considering a contract hog finishing enterprise as a way to enter agriculture or expand or diversify their current operation. This publication is in response to questions and issues related to this decision and is intended to help with the decision process. Every person, opportunity and situation is different in one way or the other, and the following discussion is more about helping you ask the right questions than giving generalized answers. Even for farmers with substantial operations the decision to enter contract production is one of the biggest decisions they will ever make. It involves a set of decisions related to farm business strategy, investment analysis and personal/family issues. Like any business venture, it is best to go in with “both eyes open” in order to be satisfied in the long run. The best possible situation for contracting firms and growers is that expectations and reality are in line over the life of the contract and beyond.