By Patricia Batres-Marquez, Decision Innovation Solutions (DIS). DIS is an Iowa-based economic research firm which provides regular farm economic research and analysis to Iowa Farm Bureau staff and members.
Feed cost is the largest cost component in a hog production enterprise. In Iowa, feed costs were about 49% of total production costs for a wean to finish operation (270 pound-hog) during 2016. Corn cost was the largest feed expense, representing 42% of total feed cost and 21% of total cost in 2016 (see Figure 1). Iowa hog production costs declined 11.2% from $150.77/head in 2015 to $133.83/head in 2016. Lower 2016 prices of corn, soybean meal, and dried distiller grain (DDG) contributed to the cost reduction. Total cost includes the cost of a 12-pound weaned pig, which in 2016 declined 22% to an average of $38.08/head compared the previous year ($48.83/head).
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