Analysis of Kansas Hog Enterprise returns from 1981-1990

Abstract

Estimated historical return distributions for farrow-to-finish, feeder pig finishing, and feeder pig producing operations in Kansas from 1981-1990 were examined. Average returns per head were the highest and downside risk was the lowest for farrow-to-finish operations over this period. However, the required investment in buildings, equipment, and breeding stock per head was also higher for this operation. Thus, a tradeoff exists between returns per head and capital requirements per head.