UIBRAFLY OF THE UNIVERSITY or ILLINOIS NON CIRCULATING CHECK FOR UNBOUND CIRCULATING COPY UNIVERSITY OF ILLINOIS Agricultural Experiment Station BULLETIN No. 301 THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING BY H. C. M. CASE AND ROBERT C. Ross URBANA, ILLINOIS, DECEMBER, 1927 SUMMARY The farm costs involved in the production of over three million pounds of pork in three different areas of Illinois are presented and analyzed in this bulletin. These data represent over two hundred full- year records from more than fifty different farmers who cooperated with the University in keeping records. Wide variations in cost occurred in the three areas. In Hancock county, the most important hog-producing area of the state, the co- operating farmers averaged a profit of $1.97 a hundredweight over the ten-year period 1913 to 1922, while in Franklin county a profit of $1.44 was realized. In Champaign and Piatt counties the farmers lost an average of 58 cents a hundredweight over the six-year period 1920 to 1925 because of unfavorable price conditions during a part of that time. The place which hog production may fill on any particular farm depends, in large measure upon the peculiarities of the farm and upon the ability of the manager in handling and marketing hogs. Each year some of the cooperators in each area produced hogs at a profit in spite of conditions which proved unfavorable to others. For in- stance, among ten farms in Champaign and Piatt counties the cost of production ranged from $7.76 a hundredweight to $13.72, as an aver- age over a four-year period. In fitting the enterprise into the general farm scheme a manager needs to consider the physical character of the farm, the grain and concentrate feeds required to be bought or raised, the advantage of combining hog production with other livestock production, labor re- quirements thruout the year, the size of the enterprise, the extent to which crops may be fed off, how the enterprise fits into the scheme of soil maintenance, the time of year when the hogs can be marketed, and differences in the abilities of men in raising hogs. The hog enterprise, because of its flexibility both as regards the numbers which may be produced within a short time and the weights to which hogs may profitably be fed, offers to corn-belt farmers one of the best means of adjusting production to take advantage of changes in the relative prices of farm products, especially corn and hogs. THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING By H. C. M. CASE, Associate Chief in Farm Organization and Management, and ROBERT C. Ross, Associate Hog production is the leading livestock enterprise thruout central Illinois. Several reasons combine to give it an important place in corn-belt farming. In the first place it is profitable over a period of years; again, it fits into the plan of operating many farms, especially in helping to market a large part of the corn crop; and finally, it affords one of the best means by which the corn-belt farmer can ad- just his farm production to meet changing market conditions. Cost-of-production studies which have been conducted in different parts of Illinois since 1913 by the University of Illinois show that after deducting all costs the production of hogs has generally resulted in a profit. Some farms have made much larger profits than others, but on the average hog production on the farms studied has proved directly profitable. Direct profits alone are sufficient to explain the important place which hogs hold in the organization of corn-belt farms. In addition to being a "direct profit" enterprise, hog production, as suggested above, fills an important place in corn-belt farming by reason of the fact that it offers a way of marketing much of the corn crop. With most crops there is the alternative of selling them directly or in the form of livestock and livestock products. Approximately 85 percent of the total corn crop, which is the most important Illinois crop, is fed mainly on the farms where produced or in the immediate locality, and of this amount about half is fed to hogs. The third point mentioned above, the value of the hog enterprise as a means of adjusting the sale of farm products to market demand, is realized when one notes the great fluctuations in the relation be- tween corn and hog prices that occur from one season to another. Over a period of years the average price of 100 pounds of hogs has been equivalent to the average price of 11 to 12 bushels of corn. During the period covered by this study, however, the ratio of the price of hogs to the price of corn has varied from the equivalent of 7 bushels of corn to 17 bushels. Since hogs can be increased rapidly in numbers and can be marketed at a considerable range in weight, they offer one of the best means of adjusting farm production from season to season to an abundant or short corn crop. NOTE. The material presented in this bulletin is based upon investigations initiated by the Department of Animal Husbandry in 1912 and upon subsequent studies by the Department of Farm Organization and Management after that department was organized in 1917. Valuable assistance and constructive criticism was given in the preparation of Part III by Dr. W. E. Carroll, Chief in Swine Production. 147 148 BULLETIN No. 301 [December, The extent to which a particular farmer will produce hogs over a period of time should be decided, however, not merely on the basis of these three factors but by consideration also of the many factors making for good farm practice. PART I COST OF PRODUCING HOGS The cost studies on which Parts I and II of this publication are based were made in Hancock and Franklin counties during the ten years 1913 to 1922 and in Champaign and Piatt counties in the years 1920 to 1925. 1 Costs are recorded on the production of 2,257,675 pounds of pork in Hancock county, 299,669 pounds in Franklin county, and 831,282 pounds in Champaign and Piatt counties, a total of more than 3,000,000 pounds. Hancock county is in west-central Illinois bordering on the Mis- sissippi river and is in the principal beef-cattle and hog-producing sec- tion of the state. Franklin county is in the central part of the south- ern one-fifth of the state, and is in an area of mixed types of farming where pork production is of minor importance. Champaign and Piatt counties are in the east-central part of Illinois in the region known as the grain farming area of the state. Here the corn sales exceed the value of hog sales by a wide margin. Despite the abnormal price conditions which occurred during the period of these studies and the high costs in relation to sales price dur- ing the more recent years, hog production proved to be a profitable enterprise on typical Illinois farms. This was true in areas where it is of minor importance as well as where it is one of the major farm en- terprises. However, there were wide variations in cost between differ- ent areas and between different periods, and between different farms 'In gathering the facts on which this publication is based, eight to twelve farmers operating typical Hancock county farms cooperated with the University each year, keeping detailed records of the cost of all farm products and the profit or loss realized from each productive enterprise. A like number of records were secured in Franklin county with the excep- tion of the last year of the period, when the number of farms decreased to three. In Champaign and Piatt counties an average of about 14 records was secured for each of the six years. The object of these studies has been to determine the conditions which make for more profitable systems of farming in different parts of the state. The data secured are valuable for this purpose because they extend over a number of years and so fluctuations due to seasonal conditions and changes in price levels are rounded off and results given which represent average conditions. Also, since these studies include a record of all parts of the farm business, it is possible to show more accurately the relation of any single enterprise, such as hog pro- duction, to the rest of the farm business, as well as to show how the enterprise may be conducted more economically. Such an analysis should help farmers to arrange their business to meet changing economic conditions. 1927] THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 149 in the same area in the same year, as pointed out in the following paragraphs. Costs Vary in Different Areas In Hancock county pork production on the farms studied gave for the ten-year period an average direct profit of $1.97 a hundred- weight. For the same period in Franklin county, where pork produc- tion is a minor enterprise, a profit of $1.44 was realized. In Cham- paign and Piatt counties the farmers lost an average of 58 cents a hundredweight during the six-year period 1920-1925. In this area only the first three years of data coincide with those from the other areas. Champaign- Piatr Counties Franklin County FIG. 1. DISTRIBUTION OF HOGS IN ILLINOIS AND AREAS STUDIED The above map is based on average numbers during 1920-1924. Each dot represents 5,000 hogs. Thruout the ten-year period the average price received by the Hancock county producers exceeded the average cost of production (Table 1 and Fig. 2). In Franklin county this was true during six of the ten years, and on the whole the margins of profit in years when there was a profit exceeded the margins of loss in other years. These results in Franklin county are good considering that swine production is of minor importance and that the number of hogs was not large 150 BULLETIN No. 301 [December, enough to make possible as economical production as on farms where the enterprise was larger. In Champaign and Piatt counties in 1920, 1921, 1922, and 1925 the hogs sold at a profit. During 1923 and 1924, however, they failed to sell for the cost of production. This was due to the fact that during $16 15 12 9 6 3 J / ,'' \ s s / ,'' ,' ^ \ ^>^^ N -___ ~~^~~ 1913 1914 1915 19/6 /9I7 1916 19/9 I92O Frank/ in County 1921 1922 1923 1924 10 15 12 9 6 3 Se - Co. II ing t it pei jrke / cwt ter cwt s X \^ ^- ' S^ s ^~/~ ^^.^ >>< / **^ /9I3 1914 1915 1916 19/7 1918 19/9 I92O 1911 /922 1923 1924 1925 Champaign and Piatt Counties FIG. 2. AVERAGE COST AND SELLING PRICE OF HOGS ON FARMS IN THE THREE AREAS STUDIED In Hancock county the price received for hogs exceeded the average cost of production in each of the ten years. In other words, hogs returned a profit to the producers. In Franklin county this was true for six out of ten years, and in Champaign and Piatt counties for four out of six years. the greater part of this two-year period the farm price of hogs was equal to only about 8 bushels of corn. In 1924, owing to a short national crop, corn went above $1.00 a bushel. This high price for corn coupled with a large supply of hogs caused an abnormal spread between the price of hogs and the cost of producing them. On the 1927} THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 151 cooperating farms hogs sold for an average of only $7.49 a hundred- weight, while they were produced that year at an average cost of $11.36 (Table 1). TABLE 1. AVERAGE COST OF PRODUCING 100 POUNDS OF HOGS ON COOPERATING FARMS IN HANCOCK AND FRANKLIN COUNTIES. ILLINOIS, FROM 1913 TO 1922, IN CHAMPAIGN AND PIATT COUNTIES FROM 1920 TO 1925; AND PRICE AT WHICH SOLD Hancock county Franklin county Champaign and Piatt counties Cost of production Price of hogs sold Cost of production Price of hogs sold Cost of production Price of hogs sold 1913. . . * 6.12 7.31 6.93 7.56 12.64 11.86 15.43 11.75 6.08 6.42 S 8.48 7.98 7.22 9.84 16.08 16.99 15.95 12.76 8.49 9.14 S 6.98 6.34 8.58 8.22 10.07 13.09 15.23 14.35 9.69 9.62 $ 7.87 7.88 6.96 9.60 14.76 15.92 15.55 11.08 8.29 8.68 $i2! 36 8.41 6.74 8.71 11.36 10.69 1914. 1915 1916 1917.. 1918 1919 1920 $13.25 8.48 9.10 7.46 7.49 11.93 1921 1922 1923 1924 1925 Wide Variations in Profits Between Farms Some farmers are much more successful than others in the hog enterprise. During each of the ten years for which records were se- cured in Hancock county, half or more of the cooperators produced hogs at a profit (Fig. 3). During six of the ten years some of them produced at a loss. The fact that some men were consistently more economical pro- ducers than others indicates that average results are not a good guide in measuring the value of an enterprise or a practice to any particular individual, but that a producer must regulate the size of his farm en- terprises in accordance with his ability to handle them. The extent to which men vary in their ability to produce hogs is well illustrated by records from a number of individual farms as shown in Part II, pages 166 to 168. Variations in Cost During Different Periods The cost of producing hogs shows wide variation not only between farms but between different periods on the same farm. From 1913 to 1916 fairly stable conditions prevailed; from 1917 to 1919 the ab- normal price conditions resulting from the World War greatly in- creased costs; while from 1920 to 1922 agricultural prices were de- pressed. 152 BULLETIN No. 301 [December, 26 24 22 Cost of hoys per cwt. on individual form Average cost per cwt Average selling price per cnt ; , , '6 ft .4 a a t 4 z i ^. ^^_ > ^' / / / j .^.^ / \ y / ' i s - -^ / \\ ' 1 L--"l \j ' I i \ ' ' FIG. 3. COST OF PRODUCING 100 POUNDS OF HOGS ON THE HANCOCK COUNTY FARMS STUDIED The lines showing average cost of production and selling price are the same as in the upper section of Fig. 2. The dots are added to show how the individual farms stood with respect to cost of production. It will be noted that during each of the ten years one- half or more of the cooperators produced hogs at a profit, and that in four years of the ten they all made a profit. In Hancock and Franklin counties the average cost per hundred- weight by periods was as follows: Hancock Franklin 1913-1916 $7.04 $7.65 1917-1919 13.32 13.10 1920-1922 8.00 1125 Ten-year weighted average 9.57 11.15 This average cost for the entire period for Franklin county is somewhat higher than that for Hancock, due mainly to the relatively larger production from 1917 to 1919, when costs were high. On the farms in Champaign and Piatt counties cooperating in this study hogs were produced at a cost of $9.18 per hundred pounds during the six- year period from 1920 to 1925. Feed Is Largest Item of Cost Feed made up from 72 to 89 percent of the total cost of producing pork in the different years of the ten-year period in Hancock county. During six of the ten years it made up 75 to 85 percent of the total cost, the higher and lower extremes representing abnormal conditions. For example, with the rapid advance in the price of corn resulting from the World War conditions in 1917, the feed cost of 100 pounds of 1927] THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 153 gain averaged $11.13, or 88.1 percent of the total cost. In 1921 the other extreme was reached when the feed cost was only $4.40, or 72.6 percent of the total cost. This low cost in 1921 was due to the general break in prices in 1920, when all farm products were abnormally low (Table 2). For the entire period in Hancock county the costs were made up as follows: feed 84.1 percent, man labor 5.9 percent, horse labor .8 percent, interest 2.8 percent, buildings and equipment 1.6 percent, overhead 2.6 percent, and miscellaneous 2.2 percent (Table 3). In Franklin county for the same period man labor, horse labor, and overhead made up a larger proportion of the total cost (Table 5). For the six-year period in Champaign and Piatt counties feed made How THE DIFFERENT ITEMS OF COST WERE DETERMINED : 1. Cost of Feed. This was determined for each month at farm prices; that is, in the case of home-grown feeds the cost charged to the hogs was the local market price less the cost of hauling to market, and in the case of purchased feed it was the local market price plus the cost of hauling to the farm. As a check on the daily feed record kept by the farmer, the feeds on hand were carefully measured each month. 2. Man Labor. The rate per hour for all hired labor was determined by dividing the total labor cost for the month by the hours of labor performed by hired help during the month. The labor of members of the family not paid a definite wage was charged at the average monthly rate of hired labor on all the cooperating farms. The amount of labor spent in caring for hogs was recorded daily by the cooperator and checked by the route man on his visits to the farm. 3. Horse Labor. The cost of horse labor per hour was determined by divid- ing the total cost of keeping horses for the entire year by the number of hours of horse labor performed on the farm during the year. The hog enterprise was then charged with the number of hours devoted to it. 4. General Farm Expense. There are always expenses incurred in the oper- ation of the farm that cannot be charged directly to any one farm enterprise but must be shared by all the productive enterprises. The more important items in- cluded here are taxes, automobile expense incurred in operating the farm, fencing, maintenance of the farmstead and water system, and such minor items as tele-' phone service. The share of these expenses to be charged to each productive en- terprise was determined by the proportion of man labor devoted to the enterprise. This seems to be as accurate and fair a basis as any for making this division. 5. Interest. This charge includes interest on the total investment in hogs charged at the rate usually paid on borrowed money. 6. Buildings and Equipment. The annual cost includes depreciation, up- keep, and interest on buildings, feeders, waterers, and other miscellaneous equip- ment. Where such buildings and equipment are shared with other livestock, the amount to be charged to hogs is estimated as accurately as possible. 7. Miscellaneous Expenses. These include such items as veterinary fees, medicines, and personal expenses of the operator in purchasing and selling hogs. Death risk is not figured as a cost of production since all costs of producing hogs that died are charged against the hogs actually produced and sold. No ex- cessive losses occurred on the farms of the cooperators, and altho there was con-- siderable loss on some farms, the large amount of data included in this study over so long a period of time is believed to represent fairly normal conditions. 154 BULLETIN No. 301 [December, t <* 00 IO 00 lO 1-1 i r; ** in t^ -^t r~ oo * t- o> ll*JI 45 i-ri^ d Tj< IN 1-I.HX 00 CO O CN CN CO 00 CO m -H n *-> IN 1-1 64 100 5,742 Ibs. 2 fl t- COCOCOtNOO b- 00 m IN CN * 00 CO il us 1 S S S fc fl.3 s SX s-s 5 ft- ga B 0*^88 A 8 8 * O M CO O * * mo>omi-"*co CO 9 o Pi o 9 45 " Sis fl co -< co rH ec 1-1 co os oo >n o IN -> --I O (N I-H g o -g o P-i S 2 o ^KO"| a o cocom^cN -i t ScDOJ'H'Ht-O O -! : S 3&s|l ^ r- o Q & ^ o S a ^ o * I** *3.*> SO -> 1-1 CO D CM 00 T (N t^ O t~ CO O 1-1 1-1 OS m o -! 1-1 co CM oo SB ^ S m t^ t^ CO CO 9 a g ^ PH S 2 o m .-. -73 ^, t-o a fl T)! r*r+r* mt , 00 So o> eo m -" oo O CM I-H CN 3 ij< .43 100 89,370 Ibs. o $o S-g O o.-Hga a IO si ~ o So ' 3 O a ^ o S P. CO * JO CN 8 1 *> "S -** (N 00 IO CO 00 1-1 O in t- co oj i" 01 w o sg-sls c 3 . ** t-m' d t TJ< i< CM 00 TJI in oo Tf d 1-1 1-1 2 100 4,464 Ibs. oo a I^J8 **" t-o'S fl TJ< CO 1-1 00 00 CO C5 CO i- ' CO O ^ lO O 1 1-1 1-1 1-1 ^" 8 J "O 3 co "! 00 (N S So fl -3 O a ^oS a ^ x> c3 a2 a o, ! "5 t-l niini d Items of cost . . . d :::::: a , . . . .3 . . . o fc -3 ) .5 -2 JS |S il 0^3 . tD-O d i-^ts^g^ 2 PI l-o jUUBfiU Total c Total pork pr< : : :1 :! uS :- :S |3lll g^j3"o SSfesSS-g <3 o * 3 >" 0) Sp3o2fe Total C Total pork prc H a p o O M o o p 3 !8 5 o S P o PH V t d I 1927] THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 155 TABLE 3. COST OF PRODUCING 100 POUNDS OF HOGS IN HANCOCK COUNTY: BY PERIODS, 1913-1922 1913-1916 1917-1919 1920-1922 1913-1922 Items of cost Cost Per- per cent 100 of pounds total gain cost Cost Per- per cent 100 of pounds total gain cost Cost Per- per cent 100 of pounds total gain cost Cost Per- per cent 100 of pounds total gain cost Man labor $ .48 6.8 S .58 4.4 $ .62 7.7 $ .56 5.9 Horse labor .08 1.1 .09 .7 .06 .8 .08 .8 Interest .23 3.3 .35 2.6 .21 2.6 .27 2.8 Buildings and equipment Overhead .09 1.3 .25 3.5 .13 1.0 .21 1.6 .21 2.7 .29 3.6 .15 1.6 .25 2.6 Miscellaneous .11 1.5 .26 2.0 .24 3.0 .21 2.2 Feed 5.82 82.5 11.69 87.7 6.37 79.6 8.06 84.1 Total cost $7.06 100. $13.31 100. $8.00 100. $9.58 100. Total pork produced. . . . 673,075 Ibs. 787,267 Ibs. 797,333 Ibs. 2,257,675 Ibs. up only 76.2 percent of the total cost (Table 6). This is accounted for by the lower price of feeds during most of the period. Since there was so much variation during the ten-year period in the cost of producing pork from $6.12 a hundredweight in 1913 to $15.43 in 1918 in Hancock county, and a like variation in Franklin county it is noteworthy that the proportion of total cost made up by feed did not vary more widely (Tables 2 and 4) . The gradual rise in the cost of man labor during the war period and the continued high level during 1919, 1920, and 1921 is reflected in these data. During these three years man labor cost 64, 73, and 64 cents respectively in producing 100 pounds of pork, while it averaged only 48 cents during the first four years of the study. Horse-labor costs and interest charges were high from 1917 to 1919. Horse-labor costs are made up in large part of the cost of feed; hence the highest costs occurred at those periods when feeds were highest. The interest cost is of course directly proportional to the price of hogs. Building and equipment costs rose gradually during the ten-year period, reaching their highest point in 1922. This is explained by the continued high prices of building materials, and the fact that farmers made few repairs during the war period and so tended to increase their expenditures in the following years. The above data indicate how changes in general price conditions affect the cost of producing hogs. Since, however, feed makes up such a large proportion of the total cost, any change in prices at that point is much more quickly reflected in the cost than are changes in other items. 156 BULLETIN No. 301 [December, 00 O> CO t- N O 00 . -H o oo 10 oo o a> t- 2 IS" 8 ! 5 1C CN CO CO 00 SO) CO I s - CO * CO OCNOCOOt- .07 100 6,379 Ibs. H CN ,s S"! PH o &9 M " "H i-H O CN O CO CN 10 | 00 8 - 3s|a . ^r ft S^ a* l* O ^* Oi C$ 00 ^ , <-" 1-1 oo as a> CN o CO H O p,88 0-HIN CO I-H 00 t~ * O 00 CD t- O 00 ICNOCNOCO 22 100 32,355 Ibs. CN a> . COCNrH TCCNU5 t O !> S> t~ CN t- CN IN .-i O <> I-H ^t--HCO50t- at IO CO CN -! TJ< CN O5 CD CN 00 C5 t^- 1^- O o ^ 10 00 iS m CO 2 g'o-g o PH o 5 >O CN CO ^ 00 t~ ^H CN 10 CO IN CO 00 1-1 CO O "O O CO . - W CO *O . IN ft 1C CO a - s i *> "^ * * CO 00 -> O O -" ^ t*- O} *O ^* iO CD CO g'S-g o PH S 3 M "' B 00 t^OOOOOCN -CO 98 100 9,777 Ibs. 00 2 PH 5 CO CN COi-H-* 00 00 <-< CO O * IN O .09 100 7,665 Ibs. a "5 S ft 3 Items of co . . . a . . . Li d O "o i i :::-::: o : : : & : : : o *i 3 : : : o- : : : - 1 ,2 i M 03_C3 g "g 1- O (- 1 O H J| :j| iililii Total co Total pork pro< S C2 *^ e& ^H O sS h a D O O g 3 a o o S p S o g I a i =H D f a 3 a H 1927] THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 157 10 to fc'O'a fl ,, a8 ,, g ] | I-M IH - -H 00 ri g 01->0"5THCO O O fc 3 2 o> 2 *!*!! to N co to o 00 O m to U5 00 O Cl tO ^ 00 O5 t^ ^ t*- t CO O MI O * ' O^ tO g 3ap 1-1 IN 03 O o OT|i>OOi-iOO a o 00 P to o> co 2 .pi's gi P-i u 3 "m fcl O rt ^ 00 IN i-l * ^H i-( o 00 O ^ 5 IN t- O 1-1 OS O> 00 1-1 00 O> "3 g O PH 8 a * * u OF PRODUCING 1 H Items of cost iiiiiii , iHlniij ji ;|;| al ^J" J S^ fn O C fe2 j; 073 ^ 158 BULLETIN No. 301 [December, 1 s O 2 fi 3 I , -^ CO O O CO 00 i-l C4 1920-1925 o,828 t>. 1 CN CO CN 00 !-<" 1 2 c3a-|S * " i 1 -.''--- r IP CM 2 g^-g o ; o CO CN-^.-CO IO CO < O CO CO CO CO O CM CN ^" 1-1 OS 00 8 8 '3 S-|S CO o i -^ Tf O O t- OS 00 CO 1 CO (N OS i-H t>. O OS 1-1 CN CO CO CO t- 1 CD . CO (N !&|1 00 '/.- 1 *> ~ *S N ^^, in ^^, <0 w CN OS fSol-a 00 1-1 IN CS * N 10 2 1 i CO uS.2gg> a 8 " i a OS CO IN O 00 CO o oo >}< OS . o "o -g o -3 o g g C.9 1-1 CN CO T" O CO 1-1 I-H CD l^" 00 00 I s * 00 1* CO OS -< CN CO 00 "5 1-1 2 "5 OS ^ s o^|S 1O X TJ< 00 CO CN CN 1/5 CO 1 OS Pu 2 1-1 -H CO *J< CO l-H IO 2| >o g 10 jal|a ^ OS CN ro * 1 jiiji :j d "o : : .-g . : : i s -3 M . . .-o . aa . . . .7 sl ;S : O ,O . CD "O fl sllllll Total c Total pork pr< 1927] THE PLACE OF Hoc PRODUCTION IN CORN-BELT FARMING 159 PART II FACTORS TO CONSIDER IN FITTING THE HOG ENTERPRISE TO THE INDIVIDUAL FARM The planning of a successful system of farming requires the fitting together of a number of different enterprises in a way which will insure economical production from the entire* farm. It is largely an indi- vidual matter, for it must take into account the peculiarities of the farm and of the manager himself. Careful attention must be given to the best utilization of the land and the crops produced, the available labor and equipment, the outlay required, the efficiency of operation, and the relation of each part to the entire farm unit. The place which hog production may be made to fill on any given farm may be said to depend upon the following factors: (1) The physical character of the farm, (2) the grain and con- centrate feeds required to be bought or raised, (3) the advantage of combining hog production with other livestock production, (4) labor requirements thruout the year, (5) the size of the enterprise, (6) the extent to which crops may be fed off, (7) how the enterprise fits into the scheme of soil maintenance, (8) the time of year when the hogs can be marketed, and (9) the manager's own ability in raising hogs. How the changing relation between the price of corn and the price of hogs may affect the practices of handling hogs and the sale of hogs and corn on the same farm from year to year is discussed later (in Part III). In this section the discussion will be confined to the points mentioned in the above paragraph. Physical Character of the Farm Farms in the same community vary greatly in their natural fertil- ity and in the proportion of the land which is tillable. The need of maintaining or of improving the fertility of the land may call for the growing of certain crops, especially legumes. Again, some of the land may be untillable and suited only for permanent pasture. Either of these conditions will provide a large proportion of rough feeds. In planning a system of farming, unless one expects to purchase feed, the crops raised will largely determine the kinds of livestock to be kept. Hogs Require Large Amounts of Grain and Concentrates As we have already seen, feed normally makes up about 80 per- cent of the total cost of producing pork where hogs are produced in large numbers. Altho forage crops have been used in increasing amounts in recent years, they make up but a small part of the total feed cost, for hogs consume large amounts of grain and other concen- trated feeds compared with the amount of forage they utilize. In these studies over 460 pounds of feeds exclusive of pasture were required for each 100 pounds gain in weight. The amount of pasture and other 160 BULLETIN No. 301 [December, roughage used would be equivalent to not more than 150 pounds on the dry-roughage basis, or to about one-fourth of the total weight of feed. Moreover, the roughage used by hogs must be mainly of the succulent and more valuable kinds. The economic place of the swine enterprise in the farming system often depends, therefore, on whether the surplus roughage feeds can be economically sold or turned back to the soil. Since good cropping systems in the corn belt produce from one to two times as much roughage (including hay, straw, and corn stover) as grain by weight, the economical utilization of legume crops and the by-products of grain production are of vital importance to the profitable operation of most farms. In the utilization of such roughages hogs cannot be con- sidered to have an important place except as they fit in with the production of other livestock. It may well be observed, however, that in so far as hogs can utilize forage crops they can make the best use of legumes. They therefore provide a direct income from the legumes which are needed in a good system of soil improvement. In the areas represented by these studies quite a difference exists in the amounts and kinds of feeds used in growing hogs (Table 7). TABLE 7. KINDS AND AMOUNTS OF FEED CONSUMED BY HOGS FOR 100 POUNDS GAIN: HANCOCK AND FRANKLIN COUNTIES, 1913-1922; CHAMPAIGN AND PIATT COUNTIES, 1920-1925 Kind of feed Hancock county 10-year average Franklin county 10-year average Champaign and Piatt counties 6-year average Corn. . . . ... Ibs. 424 .1 (7.57 bu.) Ibs. 372 .9 (6 67 bu ) Ibs. 437.6 (7 81 bu) Other grain 34.7 12.9 29.9 Mill feed 4.1 59.7 3.9 Protein supplements 18.4 14.2 31.8 Total concentrates 481.3 459.7 503.2 Roughage 3.5 4.8 6.4 Total feed (except pasture) . Value of pasture 484.8 $ .32 464.5 $ .24 509.6 $ .73 Pasture days 1 3.88 6.10 7.68 Total pork produced 2,257,675 Ibs. 299,669 Ibs. 831,282 Ibs. 'The term pasture day, as used here, indicates the amount of pasture which a mature cow or horse would consume in a day when receiving no other feed. The equivalent in hogs is equal to 1,800 to 3,000 pounds live weight, depending on the age of the hogs and the amounts of concentrates being fed. In Hancock county corn is a major crop and hogs are fed out to good average weights. In Franklin county less corn and more wheat are produced, with the result that less corn and more mill feeds are fed. Hogs are sold at lighter weights, and so less concentrates are used. Also, the hog enterprise is small on most of the farms in Franklin county and waste feeds on which no records could be secured made up a larger part of the ration. In Champaign and Piatt counties the hogs were not handled so efficiently as on many farms in Hancock 1927] THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 161 county, where large numbers were produced. This in part accounts for the use of more feed for 100 pounds gain in these two counties. It is apparent that horse, beef, 1 dairy, or mutton production has a distinct advantage over hog production in the use of pasture and roughage. In those enterprises pasture and roughage make up a large proportion of the feed and at some seasons roughage may be fed ex- clusively. Also, the roughages used include kinds which hogs cannot utilize to advantage. Hog Production Supplements Other Livestock On many farms hog production fits in advantageously with either beef or dairy production. In beef production hogs utilize the by- products of the feed lot. In dairy production, where the butterfat is eoo 600 labor on entire farm Man labor on hogs Jon. fet>. Mar. Apr. May June July Au OS CO * CO o r- o >i5 1- co co -OCM - * 1-1 t- OS i-l CO 00 CM * Cf* 1 5 t-COOCMCOOO t- .OOr-iOOCM -* jl-l CM OS ^}* CO I O3 t*- Oi t*~ O COCO CO 15 CO O T)< T< CO O 00 .^t^SOOCO 5 00 CO-* -H r~ I-H - t- t~ U5 O> O "5 b- _ cOUSi-llNINi-lO'-l .O>O 90 CO CM CO U5 U5 1-1 ~00 co cot- >n OOi- ;> CO >O "15 CM I-H CO IO CO O CM 00 CO O3 O 00 t~*ej* 15 115 O 1-1 CM 1-1 U5 ri 00 . * * O CM O O O CM ij ' O3 CO i ' OO'^Oi' IOCMCOOOW5^* _rt **^iO Tl< O 115 IN CO CM CM Ti< CD CO rj< T( CM 00 "5 lOOOCMi-icDCO MI CO ,- 5 CO CM 15 i-* * 1-1 U5 CM * t- CO CO 00 CO T? i-icO O iO 00 "^ O> i ' CO O 9 9 TH U5 CO O3 CO i-* ^ O CO CM *< t>- OCOTJ" t-O5 CO O 5 i-H ~U5CM 1-1 O CM : : : : : | :* 2 I " ill Sj 1 8 : -g | -g -"f I d & o -2 , a $ S, j**m.m ~ -a^-aaRgSo- !|| I j Sjq -a S -^S^i| H ^aSr^ H "I -i El ^ w W < H ffl = o g ~. Sg CO go - c s a s a aSoog 1 T! |l1 W :a S B 1 1 * <; lOW^tO COCOCOt- 5OO>-O '(COOCO {S'J'CO.-c T}< n< T} T COCOtOtO OOOOt-t- OO"-""-! tth-t 10 M 91 M i g s "5 CO CON t^t-t-t- 'In the above table 50 cents is allowed to cover the cost of items other than feed in carrying a hog from 200 pounds to 350 pounds. It is assumed also that tankage will cost $70 a ton, or that the 45 pounds of tankage which might be required would cost $1.57. The difference in the total value of light and heavy hogs is reduced by $2.07, therefore, to cover cost of tankage and other costs except grain. ! It is assumed that under good conditions 10.7 bushels of corn will be required to make the additional gain of 150 pounds. During fall and early winter farmers in general are using new corn for feeding. This seldom grades as good as No. 3, which at this season is old corn. The prices used here are therefore for No. 3 corn reduced by 7 percent to put them on a new corn basis. This is a conservative estimate of the cost of holding cornon the farm for a year. w ii.il U|5 W ^"o -IOC* CO t-cO^t- -io> 1-1^1 ^-4O5<-io momco pjcoccco r-ioosco cof Tjurj 1-iot-co oiOMco gCO(NO> lo^t- 00 00 ^ ^* CM"OOOt^ t^t^t^OJ S0tf300O> C^TJIIOO i-iOtDt- g'o-O 3> a a 2 g 3 OJ-S ta1^> S * MoJ Q.S-.S OOt^OtO OOOOOO OO-OCO OtD'fl'OO OOCOCD *tOO5 O5O5O3-* OdtO-^ T}TjOt^OS OSCO'-iCM (NINCMCO (NININN (M N IN 0^-it~IN COOOt^O CO CO Tit .-H COCDr-cO r-cot-cs cxioooot^ t^r^t^t- OO^ r-ionN r e-year av OOOOOO) m Month sold s November December January February |i^i li^b |ix& |i^i li^ H d M B <1 M 4 C G (- 03 M S M H d H 4 im im liii iiii im o^S-2 ells Sg-g oSg-g ogg-S ZQ^fe ^O^fe ^Q^fe ZQ^fe ^Q^ 200-pound hogs Value per hog SOO^TJI OONffltD tO^C^IN OOINO-* 00 00 00 O t-cocs 3t^t-o r~(Noo *QOOO CM CO "5 1^ O OS 00 CO 8j-" OCDeD^ O5O500D mt~TjCO OO5O5t^ "3"5t-N TjftOOOCO OONi-itO -"Jii-imiN O^'^'O NMrHrH OOOOCOIN OS'O'S't- CDCOOO'O OO CO Tl< CO CNOU3O 1-1 00 IN CO OOC5 00 OOOOOt^ O5O5OOO t-t5O CSOCJOO (N(Ni-i-H M Year and month sold August September October November .^.u ! t- . u .h.h .h.^ . t- . t- Q>m 4>V V.Q) O . o V.0> :^s t.j3 :.Q t ^5 :^3 ^ja :j= ^.a :^ ^^5 g a_g a B e -nQ%B -g s_ s BS_ga gs'o^ gs-og; a^-o^ as-ggj s^o^ |IIJI|IlilgIIJl2lUI|Iill THE PLACE OF Hoc PRODUCTION IN CORN-BELT FARMING 175 Ha a w -J co co co co *S co co co t-*oooooo i^t^coo i-H-HrHO (-OOCN^ t^-~oooo > oS oco>n 25o. CO-*")-* tfCOCOO r~>OCDO 0500CNOO 000- ^CJJ-*-* Q . I|S ** w 1 !"! gsgs gsss sgs gggg ssss SCNOCN COCNCO te 3^ ^ oocor~co coming cst^wcN i-io-*o ot^co-n CO < CO CO 5 - s=^ M Jlf S^OOCO OOOJCNOO -*00--l CN^HTfOO CO (N t^ * OCOO t^OOCNO COCOCOCN t^^tOiO lOkOOCN co oo oo * O 00 ^ "< ^^ c3 CNCNCOCO COCOCOCO CNCNCNCN CM CN CN CO 1< *** i.O CN CN^-cOO i a 1. w CS-*-*C t-KNiniO ^IIOTJ ^ ~ ^^ ~~~~ ww jjCN-Hrt 1 Ja M $$% 8S5SS SSI3S ?5??S SSS* OOCOO55O 200-pounc c u PH Oi O GO CO OOOO 00 00 GO t^* t* I s " t* t^ O CO M W rt Tj2 Year an month BC J? : : : & : : : b : : : t? : : : EJ : : : a.g_: ; S^_: ; p-gj : p-gj : f-gj : S S 8 S 8 l^li 176 BULLETIN No. 301 [December, gain of 4 cents a bushel would have been made on the additional corn fed to the hog. Such results would be obtained, of course, only under good conditions, where the hogs are efficiently handled and are making excellent gains. The prices given in the table are Chicago prices. The informa- tion may be adapted to farm prices by reducing the difference in value between light and heavy hogs by the cost of marketing the 150 pounds additional weight. This should include shipping and selling charges. Also, the average price of corn shown in the last column of the table should be reduced by the cost of shelling and marketing it. Table 14 shows the same information for fall pigs excepting that in the last column the average price of No. 3 corn at Chicago is used, as it is assumed that after April No. 3 corn will be available from the new crop. If a lower grade of corn were to be used, it could not be expected that there would be a similar reduction in the cost of grow- ing the hogs out to heavier weights, as more than 10.7 bushels of corn would probably be required to secure the 150 pounds gain. In this comparison a ration of corn and tankage has been used since it is regarded as a standard ration for hogs of the weights dis- cussed. A farmer, however, may choose to use other feeds in secur- ing the added weight. But, if tankage is not used, some good protein supplement will be needed to produce efficient gains, and it is probable that the cost would be equal to the cost of tankage at $70 a ton. If a less-efficient protein supplement were to be used, its lower cost would probably be balanced by the need for a larger amount of corn or other grain. While the figures here given do not have universal application, they illustrate facts which one should take into account in determining whether or not to feed hogs to heavier weights. In the above illustrations the costs other than feed of carrying hogs from a 200-pound to a 350-pound weight are estimated at 50 cents a hog. Under some conditions these costs may be less. Where corn is hogged down, little labor and other expense, aside from feed, will be required to carry hogs to the heavier weight. Also, with this practice the greatest saving of fertility is made, as previously dis- cussed. However, experimental work at the University of Illinois indicates that the saving in labor from hogs harvesting their own corn is partly offset by lower gains from corn fed in this way. Seasonal Variations in Price The average September price of hogs, compared with that at other seasons of the year during the past five years, has not been so favor- able as the average price of the past twenty-five years. August seems to have become a better month than September in which to market hogs. This may be expected to continue as more farmers use sanitary measures in hog production and follow other improved practices that 1927} THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 177 will enable them to put spring pigs on the market at an earlier date and spread the marketing of hogs more evenly thru the year. While data are not now available to show the relative cost of finishing hogs at different seasons of the year, it is true that the earlier spring pigs are finished for market the larger is the proportion of old corn required, and this tends to increase the cost of production. Of course when some pigs are put on lighter feed than others farrowed FIG. 7. THE CORN-HOG RATIO FROM 1913 TO 1926 BASED ON FARM PRICES FOR ILLINOIS The graph shows the bushels of corn required each month to equal the price of 100 pounds of hogs at. farm prices. The relative prices of corn and hogs may serve more or less as a guide in the production and marketing of hogs. at the same time, they will take a longer time to reach given weight and will have to be charged with the additional carrying cost of main- tenance during the longer period. While the price received for hogs during the winter months may be relatively less than at other seasons, more of the gain will be secured from new corn, which can be charged to the hogs at a lower price. Also, the finishing of hogs during the winter months does not interfere with other farm work, as it may during the cropping season. 178 BULLETIN No. 301 [December, Using the five-year period 1921 to 1925 as a basis, there would seem to be little to gain by carrying hogs weighing 200 pounds in August or early September to a heavier weight for November mar- keting. If, on the other hand, the hogs do not reach a weight of 200 pounds before October or November while making normal gains, there would seem usually to be a definite gain from feeding to heavier weights for marketing the following January or February. Of course if hog prices are low or on a downward trend in relation to the price of corn, this might not be true. In regard to fall pigs, the experience during the past five years indicates an advantage in general in feeding out to heavier weights, especially when the pigs can be carried to July or August. The mar- keting of fall pigs is usually distributed quite evenly over several months of the year. Hence there is no one month which is outstand- ingly profitable from the market standpoint. While prices of hogs are usually relatively high in March, few fall pigs reach market then, and the difference in the price of light hogs in March and heavy hogs three months later is not so great as during the fall and winter months. Also the hogs marketed at this time are all fed out on the same crop of corn, and waiting for the later markets in order to use new corn is not a factor. Consideration of Price Trends In deciding whether or not to feed hogs to heavier weights, the probable trend in the prices of corn and hogs should be taken into account. Producers too frequently base their decisions regarding pro- duction and marketing upon current market conditions, and neglect to take into account information which might help them to foresee market conditions two or three months later. When the price trend of hogs is definitely upward and is favorable to that of corn, there may be a marked advantage in feeding to heavier weights. But when hog prices have been for some time at a high level in relation to corn, and an increased supply of hogs or a short supply of corn is in sight, a downward trend will destroy the advantage before the hogs can be fed out to the heavier weight. Briefly some of the factors which should be taken into consider- ation in planning future hog production are the facilities on the farm for handling hogs, the number of hogs on farms, as reported by various public agencies, the movement of hogs to market, the results of sur- veys of the intentions to breed, weather conditions, the prevalence of disease, the supply of old corn in the country, the prospect for a new corn crop, and general business conditions. The final decision, however, whether to feed hogs out to light or to heavy weights comes back primarily to the question of a man's own efficiency in producing hogs and the thrift of the hogs on hand at the time the decision is made. In connection with the first point the 1037 \ THE PLACE OF HOG PRODUCTION IN CORN-BELT FARMING 179 attention of the reader may well be called again to Fig. 6, page 167, and Table 9, page 168, which illustrate the wide range that occurs among different farms in the cost of producing hogs. It is evident that the reason for the differences in the results which men secure in conducting the same farm enterprise lies largely in the ability of the manager. UNIVERSITY OF ILLINOIS-URBAN*