Table 16 confirms that producers with marketing contracts believe they receive the same price or a higher price for their hogs than producers in the open market – even though the open market may determine the price they receive. Source: 2001 Pork Industry Structure Study, John Lawrence, Iowa State University, Glenn Grimes, University of Missouri.

Producers marketing 1,000 to 49,999 hogs annually were asked if they would consider signing a marketing contract, and if so, what traits would make it appealing (Table 17). The most important feature is the ability to receive higher hog prices if they occur. This is more important to producers surveyed than protection from low hog prices. However, if they did have risk protection they would rather give up higher prices than pay back a ledger.
Source: 2001 Pork Industry Structure Study, John Lawrence, Iowa State University, Glenn Grimes, University of Missouri.