Caring for Our Environment
Economic Impacts of the Pork Industry
FAQs
Q. Is it true property values are negatively impacted by construction of hog production facilities nearby?
A. Actually, the opposite is indicated in a study conducted in Minnesota. New, large livestock facilities were strongly associated with higher nearby residential property values in an independent, scientific study paid for by the Minnesota Legislature and conducted by the researchers at the University of Minnesota. The study looked at actual sales prices of 292 rural residential properties located near livestock facilities larger than 1,250 head of hogs. The study showed a mean price increase of 6.6% for a rural residential property near a new feeding operation of this size or greater.
Q. Is it true that large, corporate farms now control the pork industry?
A. Despite what one might think from listening to all the talk about corporate hog farming, the overwhelming majority of U.S. hog farms continue to be sole proprietorships. Over 90% of the corporations that raise hogs are family held.
Q. What are the perceived negative economic effects of pork production?
A. Concerns typically involve quality-of-life issues like aesthetics, comfort, health, property values and housing development. In some areas of the country, citizen groups have organized to oppose new or expanded pork production facilities. The resulting debates, often emotional and contentious, have caused severe rifts between neighbors and among people in the community. There is very little evidence, however, to support fears of deterioration in quality-of-life for communities that include pork production operations. For example, communities in North Carolina have experienced rapid growth in pork production at the same time tourism has increased. Rural economies grounded in pork production and related businesses have been able to thrive, increasing property values. Small communities can attract and keep young families by supporting growth of the pork industry because it provides opportunities for new businesses and good paying jobs. As pork production methods become more familiar to the public, concerns should diminish. Responsibly managed pork operations promote economic prosperity, particularly in rural areas that may have few economic development opportunities.
Q. What are the economic benefits of pork production?
A. Pork production is a vital and growing part of the nation's economy and the industry's economic impact on rural America is especially significant. Annual farm sales usually exceed $11 billion, with the retail value of pork totaling about $30 billion. When the economic impact of wages and profits spent in other sectors is included, pork producers are responsible for generating more than $66 billion in total domestic economic activity. Through direct, indirect, and induced effects, the pork industry supports over 600,000 jobs and adds nearly $27.4 billion of value to production inputs. Efficient production methods keep consumer pork prices in the United States among the lowest in the world. The pork industry also produces non-food items used in medicines, and cleaning agents. Pharmaceutical by-products include insulin, various hormones, materials used to dress wounds and burns, and replacement heart valves. Industrial by-products include cleaners, adhesives, proteins, dyes, insulation, crayons, chalk, lubricants, and leather. The versatility of pork products makes production an appealing and potentially profitable business. The number of hogs produced in the United States now numbers about 93 million and the number of farms with hogs is more than 157,000 (USDA, December 1996). Pork producers contribute to the economic viability of rural communities by supporting service and retail businesses from the farm gate to main street. As many small towns experience a gradual loss in population and tax base, areas that rely on pork production and related businesses often benefit from greater tax revenues, increased per capita incomes, stronger employment rates, and other factors that build economically stable communities.