Producing Feeder Pigs on Contract: A Comparison

This report is based on a study of an actual feeder pig production operation. In 1988, the producers approached a few companies about farrowing sows on contract. Companies contracting in the area were offering two basic contracts. The first contract paid a mid-range outyardage fee, a large monthly sow-service fee and a production-based incentive. The.other contract offered a significantly higher outyardage fee and a production-based incentive, but it did not offer a sow-service fee