This report analyzes changes in the characteristics, production practices, and
production costs of U.S. hog operations over the past 15 years. The objective
is to emphasize economic relationships that have affected the size and
ownership structure of hog production and the impact of these changes on
industry productivity. It was found that while productivity gains can benefit consumers in terms of lower food
prices, structural changes that enable efficiency gains may also generate
environmental concerns. Increases in the scale of production resulting in
greater animal density may require operations to store manure in larger
lagoons/pits—creating concentrated levels of odor, ammonia emissions, and
the potential for larger manure spills. The concentration of hog manure
makes it more costly to use as fertilizer as more land is needed and transportation
costs to fields are greater. On the other hand, concentrating
manure sources in fewer locations potentially affects fewer people. Additionally,
greater concentration may make some manure treatment technologies
feasible (e.g., energy from biowaste, or processing into concentrated
fertilizer).