Disadvantages include contractors losing money by picking inefficient producers, and producers may find it difficult to save money from fixed payments. Three Types of Production Contracts 1. Market-Specific Production Contracts 2. Production-Management Contracts 3. Resource-Providing Contracts Swine Production Contracts Contractors bear costs associated with feed, medication, transportation, feeder pigs, and breeding stock.
Growers raise the hogs in their own facilities and are compensated on a fee basis.
Your Farm A. Variable Cost Per Pig Space 1. This table outlines a worksheet that can be used to calculate the costs and returns per pig space for contract hog finishing. Farmers provide land and housing facilities, labor, and other operating expenses such as repairs and maintenance, manure disposal, and chicken housing cleaning. Base Payment 2. Incentive or Performance Payment 3.