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| Best of NAMA 2026 |
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FINISHING HOG PRODUCTION COSTS DECREASE AS FARM SIZE INCREASES
Nov. 6, 2026
Source: USDA news release
Over the past 30 years, U.S. hog production has consolidated into fewer, larger operations. This structural shift is consistent with the relationship between operation size and lower per unit costs.
Across five benchmark years of nationally representative surveys--1998, 2004, 2009, 2015, and 2020--total costs per 100 pounds of gain on hog finishing operations generally decreased as operation size increased. Although costs varied across years and on farms, larger operations tended to incur lower costs to add 100 pounds to a hog's weight than smaller operations.
Economies in ownership costs (buildings, equipment, and other capital investments) contribute to this relationship. Ownership costs can be distributed across more animals, thereby reducing their cost per unit of output. Unpaid labor costs were also generally lower on a per unit basis among larger operations.
More recent years reflect higher costs, but this trend is driven by rising input prices over time.
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