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Motivations for exiting hog production in the 1990s and incentives for re-entry

Author

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  • John D. Lawrence

    (Department of Economics at Iowa State University, Ames, Iowa)

  • Erda Wang

    (Center for Agricultural and Rural Development (CARD), Department of Economics, Iowa State University, Ames, Iowa)

Abstract

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. © 1998 John Wiley & Sons, Inc.

Suggested Citation

  • John D. Lawrence & Erda Wang, 1998. "Motivations for exiting hog production in the 1990s and incentives for re-entry," Agribusiness, John Wiley & Sons, Ltd., vol. 14(6), pages 453-465.
    • Handle: RePEc:wly:agribz:v:14:y:1998:i:6:p:453-465
    DOI: 10.1002/(SICI)1520-6297(199811/12)14:6<453::AID-AGR3>3.0.CO;2-T
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    References listed on IDEAS

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    1. V. James Rhodes, 1995. "The Industrialization of Hog Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(2), pages 107-118.
    2. Hurt, Christopher, 1994. "Industrialization in the Pork Industry," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 9(4), pages 1-5.
    3. Alan Barkema & Mark Drabenstott & Kelly Welch, 1991. "The quiet revolution in the U.S. food market," Economic Review, Federal Reserve Bank of Kansas City, vol. 76(May), pages 25-41.
    4. Lawrence, John D. & Rhodes, V. James & Hayenga, Marvin L., 1997. "Vertical Coordination in the U.S. Pork Industry: Current Status, Motivations, and Expectations," Staff General Research Papers Archive 5006, Iowa State University, Department of Economics.
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    Cited by:

    1. Diersen, Matthew A., 2001. "South Dakota's Hog Market: Developments and Prospects," Economics Staff Papers 32021, South Dakota State University, Department of Economics.

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