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A growing trend in Iowa
agriculture during the last three or four decades has been the
appearance of fewer farms with an increasing average size. "This
trend is oftentimes a result of costly regulations, higher expenditures,
low market prices and a higher cost of living for farmers,"
said Sam Carney, President of the Iowa Pork Producers Association.
"The reason behind the trend is simple -- farmers have to
produce more hogs in order to make a living and provide for their
families."
New in 2002, the Ag Census tracked the producers
that raised and delivered livestock under a production contract.
The Census reported that 16.5 million hogs from 3,272 farms were
delivered under a contracting arrangement. "Oftentimes,
producers align themselves with a company that is willing to
accept market risks by entering into a production contract,"
said Carney. "This has been a trend this last decade, as
low market prices have challenged many producers to seek other
careers, change production methods and management techniques
or find another source of supplemental income."
By entering into a production
contract, farmers are assured a fixed price or fee regardless
of future market prices. "This will most likely continue
to be the trend, especially among the younger producers who are
trying to enter into farming," said Carney.
"However, one trend
that has remained relatively consistent is the total number of
hogs and pigs grown in Iowa," said Carney. "As Iowa
producers, we're proud to continue the tradition of ranking number
one in pork production within the U.S. It's no secret that Iowa
has been a top producing livestock state because of its infrastructure,
capable farmers, fertile soil and abundant grain production."
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