LEAFLET NO. 57
SEPTEMBER 1958
WHAT
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IGS
AGRICULTURAL EXPERIMENT STATION
of the
ALABAMA POLYTECHNIC INSTITUTE
E. V. Smith, Director Auburn, 
Alabama
e
WHAT CAN PAY ot
FEEDER PIGS?
MORRIS WHITE, Associate Agricultural Economist
J. H. YEAGER, Agricultural Economist
0
A LABAMA FARMEBS BUY a large
number of feeder pigs each year. These
purchases are likely to increase as farm-
ers become more specialized in hog
production. Mounting interest in grow-
ing and finishing hogs under contract
agreements also points toward greater
sales of feeder pigs in the State.
Whether a farmer buys feeder pigs
depends on a number of economic fac-
tors. Among these are the asking price
for feeders, the current price for mar-
ket hogs and feed supplies, and past
experience with feeder pigs.
INFLUENCING FACTORS
just how much can a farmer pay for
feeder pigs? This depends on several
things, but the most important are the
following:
1. The expected price for market
hogs when feeders reach market weight.
2. The amount of corn required to
produce 100 pounds of pork (feeding
efficiency).
3. The present and expected price
of corn during growing and finishing
period.
This does not mean that such factors
* The assistance of H. F. Tucker, as-
sistant animal husbandman, and G. B.
Phillips, Extension specialist in animal in-
dustry, in preparing this report is gratefully
acknowledged.
as disease and parasite control, protein
amounts and costs, breeding, sanitation,
and others are not important. For
greatest profits, it is important that all
these factors be considered.
Farmers have more control over cer-
tain of these factors than others. The
amount of corn used in producing a
market hog can be materially changed
by following good practices. But, an
individual farmer can do little to influ-
ence prices of feeder pigs, corn, or
market hogs. A farmer following good
management practices will adjust his
hog enterprise to price changes. To
do this he needs information about mar-
ket supplies and conditions, the outlook
for hogs, and feed supply prospects.
DECISIONS
Many Alabama farmers who are con-
sidered to be good hog producers often
make less profit or even lose money
because they do not adjust to changing
prices and costs. For example, a farmer
may be faced with the question of
whether to feed $1.40-per-bushel corn
to 40-pound pigs that cost $10 each
when the expected market price of hogs
is $18 per hundredweight. To answer
this question the farmer must have in-
formation on the foregoing factors. The
data must be adapted to his own situa-
tion. With adequate data and some
understanding of the factors involved,
he can arrive at a wise decision.
[92]
USE of DATA
The following information and tables
are intended to guide hog producers in
making decisions. The prices farmers
could pay for feeder pigs as reported
in Tables 1, 2, and 3 are "break-even"
prices. To make a profit, pigs would
have to be bought at lower prices than
those indicated. The "break-even" price
means that costs of producing hogs
would have to be about the same 
as
those used in calculating the break-
even prices. All costs of production 
are
included. The tables give the prices
that could be paid for feeder pigs 
of
40, 70, and 100 pounds. The price 
or
cost of corn (including any storage
costs) varies from $.90 to $1.60 
per
bushel. The expected price for 
market
hogs is $12 to $24 per hundredweight.
Pounds of corn required to produce 
a
pound of pork is given as 2.5 (a high
level of efficiency), 3.0 (a medium
level), and 4.0 (a lower level 
of feed
efficiency). The 2.5 level would 
re-
quire only 4.5 bushels of corn to 
pro-
duce 109 pounds of pork, whereas 
the
4.0 level would require 7.2 bushels.
In arriving at the prices that could
be paid for feeder pigs and break 
even
on all costs, certain conditions 
were
used.
(1) Weight of the market hog 
when
sold is 220 pounds.
(2) The following amounts 
of pro-
tein supplement are required 
from
feeder weight to 220 pounds:
40-pound feeder - 80 
pounds of
supplement
70-pound feeder - 65 pounds 
of
supplement
100-pound feeder - 50 pounds 
of
supplement
(3) Cost of minerals, 
veterinary
services, pasture, death losses, 
build-
ings, equipment, fences, interest 
on in-
vestment, and labor do not vary 
greatly
with the weight of feeder 
pigs pur-
chased. It is recognized that 
variation
in costs exist among farms. 
Yet these
costs, as a percentage of 
total costs,
are relatively less important than 
the
costs of corn and protein supplement.
The costs incurred, other 
than for
corn, as used in arriving 
at the "break-
even' price on a 40-pound 
feeder raised
to 220 pounds were 
estimated to be
the following:
Item 
Cost
Protein supplement,
80 lb. @ $5.50/cwt. 
$4.40*
L abor ---------------------- 
-- 4.00
Pasture (high quality forage) 
..... 2.50
Other (includes minerals, 
veterinary
and medical expenses, 
death losses,
interest on investment, and build-
ing equipment and fencing 
costs) 4.10
Total (other than corn) -------
$15.00
ILLUSTRATION
What is the "break-even" price of a
40-pound feeder, under 
the following
conditions? (1) $1.30 corn including
any storage costs, (2) a 
market price
of $18 per hundredweight, and 
(3) a
requirement of 3 pounds 
of corn per
pound of gain. It is $12.07. 
(See Ta-
ble 1, read across top to $18.00, 
and
down this column to $1.30 in the "price
of corn per bushel" column in 
the sec-
tion of 3.0 pounds of corn per pound
of pork.) The answer was 
obtained
by taking the total of the $15.00 
cost
other than for corn plus the 
value of
corn, $12.53, (180 pounds gain 
X 3
pounds corn per pound gain 
- 540
pounds corn -- 56 pounds per bushel
= 9.64 bushels X $1.30 per bushel 
=
$12.53), or $27.53 from the expected
value, $39.60 (220-pound hog 
at
$18.00 per hundredweight 
- $39.60)
of the market hog. The difference 
in
the value of the market hog, $39.60
and $27.53 equals $12.07. This 
is the
amount that could be paid for a 
40-
* Using 65 and 50 pounds of 
protein
supplement for 70- and 100-pound feeder
pigs, respectively, the protein cost would
be $3.58 and $2.75. Total cost other than
corn would be $14.18 for a 70-pound
feeder and $13.35 for a 100-pound feeder.
[3]
pound feeder pig and break even on
all costs. Or, one might consider the
$12.07 as a maximum pig cost (cost of
feed for pig and all pro rata costs for
breeding stock) if pigs were raised.
The answer to the question of
whether or not a farmer could feed
$1.40 per bushel corn to a 40-pound
feeder pig that cost $10 if the expected
price for a 220-pound market hog was
$18 per hundredweight depends to a
large extent on feeding efficiency.
If the farmer were a good manager
and used less than 8.0 pounds of corn
per pound of gain, the answer is "yes,"
he could make a profit. (See Table 1.)
However, if 4.0 pounds of corn were
required per pound of gain, a loss
would be sustained, based on the data
presented.
Feeding efficiency is a very important
factor in making profits with hogs. One
can afford to pay more for a feeder
pig if a high level of feeding efficiency
is attained (Figure 1.) But, feeders
are not priced according to a farmer's
level of feeding efficiency. This means
that profits are possible at a high level
but more difficult to make at a low
level of feeding efficiency.
Wise use of these data will help to
increase profits. But remember, these
figures are based on averages. Some
adjustment in figures may be necessary
for them to best serve each hog pro-
ducer.
FIGURE 1. Estimated price per head that can be paid for 40-pound feeder pigs with
corn at $1.20 per bushel and hogs sold at 220 pounds weight is shown in the above
graph for three levels of feeding efficiency.
[4]
TABLE 1. ESTIMATED PRICE (PER HEAD) THAT CAN BE PAID FOR 40-POUND FEEDER PIGS AT VARIOUS PRICES FOR CORN AND HOGS, AND
AT DIFFERENT FEED EFFICIENCY 
LEVELS*
Pounds of corn Price of Expected price per hundredweight for 
220-pound hog
per pound of corn per
pork bushel $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 
$23 $24
Price per head
$0.90 $ 4.16 $ 6.36 $ 8.56 $10.76 $12.96 $15.16 $17.36 $19.56 $21.76 $23.96 $26.16 
$28.36 $30.56
1.00 3.36 5.56 7.76 9.96 12.16 14.36 16.56 18.76 20.96 23.16 25.36 27.56 29.76
1.10 2.56 4.76 6.96 9.16 11.36 13.56 15.76 17.96 20.16 22.36 24.56 26.76 
28.96
2.5 1.20 1.75 3.95 6.15 8.35 10.55 12.75 14.95 17.15 19.35 21.55 
23.75 25.95 28.15
1.30 .95 3.15 5.35 7.55 9.75 11.95 14.15 16.35 18.55 20.75 22.95 25.15 27.35
1.40 .14 2.34 4.54 6.74 8.94 11.14 13.34 15.54 17.74 19.94 22.14 24.34 26.54
1.50 1.54 3.74 5.94 8.14 10.34 12.54 14.74 16.94 19.14 21.34 23.54 25.74
1.60 .74 2.94 5.14 7.34 9.54 11.74 13.94 16.14 
18.34 20.54 22.74 24.94
.90 2.72 4.92 7.12 9.32 11.52 13.72 15.92 18.12 20.32 22.52 
24.72 26.92 29.12
C 1.00 1.76 
3.96 6.16 8.36 10.56 12.76 
14.96 17.16 19.36 21.56 23.76 
25.96 28.16
1.10 .80 3.00 5.20 7.40 9.60 11.80 14.00 16.20 18.40 21.60 22.80 25.00 
27.20
3.0 1.20 2.03 4.23 6.43 8.63 10.83 13.03 15.23 17.43 19.63 
21.83 24.03 26.23
1.30 1.07 3.27 5.47 7.67 9.87 12.07 14.27 16.47 18.67 20.87 23.07 25.27
1.40 .10 2.30 4.50 6.70 8.90 11.10 13.30 15.50 17.70 19.90 22.10 
24.30
1.50 1.34 3.54 5.74 7.94 10.14 12.34 14.54 16.74 18.94 21.14 23.34
1.60 .38 2.58 4.78 6.98 9.18 11.38 13.58 15.78 17.98 20.18 22.38
.90 2.03 
4.23 6.43 8.63 
10.83 13.03 15.23 
17.43 19.63 21.83 
24.03 26.23
1.00 .74 2.94 5.14 7.34 9.54 11.74 13.94 16.14 18.34 20.54 22.74 24.94
1.10 1.65 3.85 6.05 8.25 10.45 12.65 14.85 17.05 19.25 21.45 23.65
4.0 1.20 .37 
2.57 4.77 6.97 9.17 11.37 13.57 
15.77 17.97 20.17 22.37
1.30 . 1.28 8.48 5.68 7.88 10.08 12.28 14.48 16.68 18.88 21.08
1.40 .. 2.20 4.40 6.60 8.80 11.00 13.20 15.40 17.60 19.80
1.50 - .91 3.11 5.31 7.51 9.71 11.91 14.11 16.31 18.51
1.60 . . .. -1.82 4.02 6.22 8.42 10.62 12.82 15.02 17.22
* The estimated feeder pig prices above should be considered as "break-even" prices. Usual costs other than for corn have been 
added
to the cost of corn at each level of grain feeding efficiency (2.5, 3.0, and 4.0). The total was then subtracted from the gross amount that
would be received from the sale of a 220-pound market hog at various prices to arrive at the estimated feeder pig price indicated above.
TABLE 2. ESTIMATED PRICE (PER HEAD) THAT CAN BE PAID FOR 70-POUND FEEDER PIGS AT VARIOUS PRICES FOR CORN AND HOGS, AND
AT DIFFERENT FEED EFFICIENCY LEVELS
Pounds of corn Price of 
Expected price per hundredweight for 220-pound 
hog
per pound of corn per
pork bushel $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 $23 $24
Price per head
$0.90 $ 6.19 $ 8.39 $10.59 $12.79 $14.99 $17.19 $19.39 $21.59 $23.79 $25.99 $28.19 $30.39 $82.59
1.00 5.52 7.72 9.92 12.12 14.32 16.52 18.72 20.92 23.12 25.32 27.52 29.72 31.92
1.10 4.85 7.05 9.25 11.45 13.65 15.85 18.05 20.25 22.45 24.65 26.85 29.05 31.25
2.5 1.20 4.18 6.38 8.58 10.78 12.98 15.18 17.38 19.58 21.78 23.98 26.18 28.38 30.58
1.30 3.51 5.71 7.91 10.11 12.31 14.51 16.71 18.91 21.11 23.31 25.51 27.71 29.91
1.40 2.84 5.04 7.24 9.44 11.64 13.84 16.04 18.24 20.44 22.64 24.84 27.04 29.24
1.50 2.17 4.37 6.57 8.77 10.97 13.17 15.37 17.57 19.77 21.97 24.17 26.37 28.57
1.60 1.50 3.70 5.90 8.10 10.30 12.50 14.70 16.90 19.10 21.30 23.50 25.70 27.90
.90 4.98 7.18 9.38 11.58 13.78 15.98 18.18 20.38 22.58 24.78 26.98 29.18 31.38
1.00 4.18 6.38 8.58 10.78 12.98 15.18 17.38 19.58 21.78 23.98 26.18 28.38 30.58
1.10 3.38 5.58 7.78 9.98 12.18 14.38 16.58 18.78 20.98 23.18 25.38 27.58 29.78
3.0 1.20 2.57 4.77 6.97 9.17 11.37 13.57 15.77 17.97 20.17 22.37 24.57 26.77 28.97
1.30 1.77 3.97 6.17 8.37 10.57 12.77 14.97 17.17 19.37 21.57 23.77 25.97 28.17
1.40 .96 3.16 5.36 7.56 9.76 11.96 14.16 16.36 18.56 20.76 22.96 25.16 27.36
1.50 .16 2.36 4.56 6.76 8.96 11.16 13.36 15.56 17.76 19.96 22.16 24.36 26.56
1.60 __ 1.56 3.76 5.96 8.16 10.36 12.56 14.76 16.96 19.16 21.36 23.56 25.76
.90 2.58 4.78 6.98 9.18 11.38 13.58 15.78 17.98 20.18 22.38 24.58 26.78 28.98
1.00 1.51 3.71 5.91 8.11 10.31 12.51 14.71 16.91 19.11 21.31 21.51 23.51 25.71
1.10 .44 2.64 4.84 7.04 9.24 11.44 13.64 15.84 18.04 20.24 22.44 24.64 26.84
4.0 1.20 1.57 3.77 5.97 8.17 10.37 12.57 14.77 16.97 19.17 21.37 23.57 25.77
1.30 .50 2.70 4.90 7.10 9.30 11.50 13.70 15.90 18.10 20.30 22.50 24.70
1.40 1.63 3.83 6.03 8.23 10.43 12.63 14.83 17.03 19.23 21.43 23.63
1.507 .56 2.76 4.96 7.16 9.36 11.56 13.76 15.96 18.16 20.36 22.56
1.60 1.68 3.88 6.08 8.28 10.48 12.68 14.88 17.08 19.28 21.48
* The estimated feeder pig prices above should be considered as "break-even" prices. Usual costs other than for corn have been added
to the cost of corn at each level of grain feeding efficiency (2.5, 3.0, and 4.0). The total was then subtracted from the gross amount that
would be received from the sale of a 220-pound market hog at various prices to arrive at the estimated feeder pig price indicated above.
TABLE 3. ESTIMATED PRICE (PER HEAD) THAT CAN BE PAID FOR 100-POUND FEEDER PIG AT VARIOUS PRICES FOR CORN AND 
HOGS, AND
AT DIFFERENT FEED EFFICIENCY LEVELS*
Pounds of corn Price of 
Expected price per hundredweight for 220-pound 
hog
per pound of corn per
pork bushel $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 $23 $24
Price per 
head
$0.90 $ 8.23 $10.43 $12.63 $14.83 $17.03 $19.23 $21.43 $23.63 $25.83 $28.03 $30.23 $32.43 $34.63
1.00 7.69 9.89 12.09 14.29 16.49 18.69 20.89 23.09 25.29 27.49 29.69 31.89 34.09
1.10 7.15 9.35 11.55 13.75 15.95 18.15 20.35 22.55 24.75 26.95 29.15 31.35 33.55
2.5 1.20 6.62 8.82 11.02 13.22 15.42 17.62 19.82 22.02 24.22 26.42 28.62 30.82 88.02
1.30 6.08 8.28 10.48 12.68 14.88 17.08 19.28 21.48 23.68 25.88 28.08 30.28 32.48
1.40 5.55 7.75 9.95 12.15 14.35 16.55 18.75 20.95 23.15 25.35 27.55 29.75 31.95
1.50 5.01 7.21 9.41 11.61 13.81 16.01 18.21 19.41 21.61 23.81 26.01 28.21 30.41
1.60 4.47 6.67 8.87 11.07 13.27 15.47 17.67 19.87 22.07 24.27 26.47 28.67 30.87
.90 7.26 9.46 11.66 13.86 16.06 18.26 20.46 22.66 24.86 27.06 29.26 31.46 33.66
1.00 6.62 8.82 11.02 13.22 15.42 17.62 19.82 22.02 24.22 26.42 28.62 30.82 33.02
1.10 5.98 8.18 10.38 12.58 14.78 16.98 19.18 21.38 23.58 25.78 27.98 30.18 32.38
3.0 1.20 5.33 7.53 9.73 11.93 14.13 16.33 18.53 20.73 22.93 25.13 27.33 29.53 31.73
1.30 4.69 6.89 9.09 11.29 13.49 15.69 17.89 20.09 22.29 24.49 26.69 28.89 31.09
1.40 4.05 6.25 8.45 10.65 12.85 15.05 17.25 19.45 21.65 23.85 26.05 28.25 30.45
1.50 3.41 5.61 7.81 10.01 12.21 14.41 16.61 18.81 21.01 23.21 25.41 27.61 29.81
1.60 2.76 4.96 7.16 9.36 11.56 13.76 15.96 18.16 20.36 22.56 24.76 26.96 29.16
.90 5.34 7.54 9.74 11.94 14.14 16.34 18.54 20.74 22.94 25.14 27.34 29.54 31.74
1.00 4.48 6.68 8.88 11.08 13.28 15.48 17.68 19.88 22.08 24.28 26.48 28.68 30.88
1.10 3.62 5.82 8.02 10.22 12.42 14.62 16.82 19.02 21.22 23.42 25.62 27.82 30.02
4.0 1.20 2.77 4.97 7.17 9.37 11.57 13.77 15.97 18.17 20.37 22.57 24.77 26.97 29.17
1.30 1.91 4.11 6.31 8.51 10.71 12.91 15.11 17.31 19.51 21.71 23.91 26.11 28.81
1.40 1.05 3.25 5.45 7.65 9.85 12.05 14.25 16.45 18.65 20.85 23.05 25.25 27.45
1.50 .19 2.89 4.59 6.79 8.99 11.19 13.39 15.59 17.79 19.99 22.19 24.39 26.59
1.60 1.54 3.74 5.94 8.14 10.34 12.54 14.74 16.94 19.14 21.34 23.54 25.74
* The estimated feeder pig prices above should be considered as "break-even" prices. Usual costs other than for corn have been added
to the cost of corn at each level of grain feeding efficiency (2.5, 3.0, and 4.0). The total was then subtracted from the gross amount that
would be received from the sale of a 220-pound market hog at various prices to arrive at the estimated feeder pig price indicated above.