Economic and Marketing INFORMATION
FOR
INDIANA
FARMERS
Boost Your
Hog Income by Timely Marketings!
by CLIFTON  B.  COX and  PATRICK J.  LUBY,  Agricultural  Economics
WflSE PLANNING of when and
t» where to market your hogs can
spell the difference between profit and
loss. The cost-price squeeze emphasizes the need to give special attention.
to your marketing program. A few
minutes spent in determining where
to market and when to market maybe as important as some decisions on
how to produce. Too often marketing
is overlooked as one of the major
keys to profit.
What Farmers  Have  Done
During the last eight years, Indiana
farmers have grossed $12,000,000
more by marketing their hogs during
periods of relatively higher prices
than they would have received by following the national marketing pattern
tTable 1). Better planned production
and marketing programs have resulted in hog producers receiving this
extra income. In 1954 and 1955
alone, more timely marketings
hrought an additional $7,500,000 to
Indiana hog farmers. Thus we need
to carefully watch for changing seasonal patterns of hog marketings and
prices.
Table 1. Added Income to Indiana
Hog Producers
'?ar
'943
'949
'950
'951
'952
'953
'954
'955
Added  Income
$  1,835,000
280,000
1,122,000
118,000
838,000
119,000
3,067,000
4,454,000
Tota
$12,833,000
. The pattern of Indiana hog market-
ln?s is considerably different from
that of the rest of the country. (See
lgurel.) Indiana farmers sold more
J their hogs during March, April,
August   and   September   -  -   usually
J F M
Figure 1. Notice how Indiana's
hog marketing pattern differs from
the other 47 states (1952-1955
average).
months of higher prices—in each of
the eight years than did producers in
the other 47 states. But during November, December and January they
marketed relatively fewer hogs than
farmers in the other states. These
w inter months are normally months of
very heavy marketings in most other
parts of the country. Consequently,
prices are usually lower.
Earlier Spring  Farrowings
This added income of Indiana
farmers is largely the result of earlier
spring farrowings. In 1956, they farrowed almost half of their spring farrowed sows in December, January
and February (Figure 2). The other
seven largest hog producing states farrowed from 20 to 40 percent of their
spring total during the same months.
Indiana plus the other seven states
accounted for over 70 per cent of
the total sows farrowed in the spring
of 1956.
As a result of earlier spring far-
rowings, hog prices now peak earlier
in the yeai limn they did previously.
From August, 1952 to July, 1956, Indiana prices were more favorable in
April, May and June and less favorable in August, September and October than they were from August 1948
to July 1952 (Figure 3). Some of this
change is a result of earlier marketings by Indiana hog producers as well
as by farmers in many other states.
What  Can  You   Do?
You should take a look at your
hog enterprise to see if changes in
timing of your production program
will gross you more income. But you
must consider costs as well as gross
returns. Among the factors which affect costs are equipment and the availability of labor.
For example, you may gross more
by selling hogs during May. June or
July. But in order to do this, your
sows must farrow in November, December or January. It may be that
equipment or labor required for other
INDIANA
OHIO
MISSOURI
WISCONSIN
ILLINOIS
IOWA
MINNESOTA
NEBRASKA
PERCENT
Figure 2. Indiana farmers farrowed more sows in December,
January and February of 1956
than did any of the other seven
large hog producing states. Note
that Indiana produced 49 percent
of its spring pigs in these months.