The objective of this article is to estimate, using Markov chain analysis, the relative
importance of input and output prices and other factors in the determination of the size
distribution of hog operations in the United States in recent years. The following section
briefly reviews the literature on Markov Chain analysis as it applies to agricultural subsectors. Then, a model is presented for estimation. Empirical results are presented in the
fourth section. The final section of the paper contains conclusions and implications.