Results of pork production study published by economics department
January 28, 1998
The Iowa State economics department recently published “Iowa’s Pork Industry — Dollars and Scents” to provide information to the people of Iowa on the trade-off involved with pork production.
The publication is the result of about 18 economists’ work during the summer and fall of 1997.
It comprises 11 chapters which highlight different dimensions of the industry, including policy alternatives for dealing with structural and environmental concerns.
It also compares the costs and benefits of the industry.
The hog industry has a large economic impact in the state of Iowa for value-added employment, said John Miranowski, chair of the department of economics. Roughly 89,000 jobs and $3 billion are related to producing pork products in Iowa.
“We also recognize in the study that there are very important costs involved with pork production,” he said. “If waste is not managed properly as a nutrient, it may cause odor and water contamination problems.”
There are heated and emotional debates with a lot of numbers used by both sides, said John Lawrence, Extension Livestock Economist. The project has provided new research, with a broad-based look at the issues the debate involves, he said.
“There is not just one concern that you can look at,” Lawrence said. “We used a balanced research base to address those concerns.”
The project involved four surveys. The first asked former producers why they left the industry and what it would take to get them back. It found that low hog prices, high corn prices and personal reasons were important reasons why people quit producing pork.
Lawrence said the survey confirmed that the farmers who have stopped producing pork were relatively small in size and had a low investment in the operation.
He said the producers over 1,000 hogs are not quitting, and those taking pork production seriously are doing well.
The second survey asked producers about their waste management procedures. It found that most hog waste is handled in a solid form or a deep pit system, not in open-air lagoons.
The third survey asked rural Iowans about their attitudes toward pork production, and the fourth involved 10 focus groups made up of hog producers and agribusinessmen.
In general, the polls found that Iowans support pork production and would like to see Iowa remain the top producer but are concerned about absentee ownership and corporate farms.
They also would like to see additional environmental regulations. People were concerned about local control and having access to the producer, the survey said.
Miranowski said a lot of people feel that larger producers are displacing smaller producers — but in reality, if regulations are placed on the larger operations, they will go somewhere else.
Iowa producers are not competing with other producers across the state, but across the country and even Canada, he said.
A conference to present the research was held over the Iowa Communications Network (ICN) on January 6. The 573 participants at 28 sites included county supervisors, bankers, elected officials and community members.
“It went extremely well, with good feedback,” Miranowski said. “It went a long way in providing people with the costs and benefits to discuss the pros and cons of the industry.”
Lawrence said he also heard good feedback from people about the conference. People had very good local discussions on the topics presented, he said.
The research was funded by ISU and Extension, Iowa Department of Economic Development and the Iowa Pork Producers Association.
The 52 page publication is available for $4 through the Extension Distribution Center.