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The Farm CPA

RSS By: Paul Neiffer, Top Producer

Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.

Bring Home the Bacon

Aug 25, 2010

After at least two years of massive losses, hog farmers are now starting to enjoy much higher prices for their products.  Most of the studies I have reviewed indicated that most farmers that raised hogs probably lost anywhere from $20 to $60 per hog produced in 2008 and 2009.  Based on the higher current prices, I would estimate that they are making at least this much per hog raised right now.

During 2008, the hog farmer had a double whammy of low price for their product and much higher feed costs.  Right now, they have a high price for selling the hogs and feed prices have not rallied too much (as compared to 2008).

Prices for pork bellies which makes up our bacon have risen about 72% in the past year to around $1.43 per poundaccording to an article I read in this Kokomo, Indiana newspaper.  Bacon prices have averaged more than $4 per pound which is the highest price since at least 1980 (although on an inflation adjusted basis, it is still much lower than 1980).

This is a good article to give you perspective on where the pork industry is at right now.

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