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Determination of contract base payments to feeder-pig finishers
Parcell, J.L.; Langemeier, M.R.
Conference paper
Publication Date:1996
Conference:Swine Day, Manhattan, KS, November 21, 1996 Starting Page:173, Ending Page:176 Publisher:Kansas State University. Agricultural Experiment Station and Cooperative Extension Service
Risks associated with independent feeder-pig
finishing have prompted finishers to seek alternative finishing and marketing methods. A means of reducing risk has developed
through contract feeder-pig finishing. Research results indicated that slightly risk-averse finishers required contract base payments ranging from $11.00 to $30.00 per
head. Strongly risk-averse finishers required
contract base payments ranging from $8.50 to $19.00 per head. The lower end of the ranges is for a low-profit finisher. The upper end of the ranges is for a high-profit finisher.