Medium-sized producers (those marketing 1,000 to 9,999 hogs annually) were asked if they had changed their production level since signing a marketing contract. The survey also asked producers in this group if they thought their farms were larger today because of the marketing contract vs. if they had not had one. (See Table 14.)

Only 12 percent of the producers in the 1,000-to-49,999 size category said they had increased production since receiving a contract, but their expansion averaged more than 70 percent. Conversely, only 4 percent of the reporting producers said they had reduced production by an average of 50 percent since signing a contract. Again, on the growth side, 17 percent of the producers thought they were larger today in part because of their marketing contract, with the growth cited at more than 100 percent.
Source: 2001 Pork Industry Structure Study, John Lawrence, Iowa State University, Glenn Grimes, University of Missouri.

As one may expect, particularly since 1998, prices received and controlling price risk are seen as the two largest advantages of having a marketing contract (Table 15a). The 10,000-to-49,999 producer group gave those two factors the highest rating. Interestingly, being locked out of higher prices and not being treated fairly by packers are rated as relatively low in importance.
Source: 2001 Pork Industry Structure Study, John Lawrence, Iowa State University, Glenn Grimes, University of Missouri.