Determination Of Contract Base Payments To Feeder-Pig Producers

Kansas State University Swine Research. Risks associated with independent feederpig production have prompted producers to seek alternative production and marketing methods. A means of reducing risk has developed through contract feeder-pig producing. Research results indicate that s lightly risk-averse producers required contract base payments ranging from $7.50 to $28.50 per head. Strongly risk-averse producers required contract base payments ranging from $2.50 to $17.75 per head. The lower end of the ranges is for a low-profit producer. The upper end of the ranges is for a high-profit producer .