Farms.com Home  › News

Federal Judge Ruling Disastrous for Small U.S. Hog Farmers

Left unchallenged, a recent federal district court ruling will result in a 2.5 percent loss in pork packing plant capacity nationwide, and more than $80 million in reduced income for small U.S. hog farmers, according to an analysis by Dr. Dermot Hayes, an economist with Iowa State University. The National Pork Producers Council (NPPC) is urging the U.S. Department of Agriculture (USDA) to intervene before the ruling takes effect at the end of next month. The ruling will dramatically reduce hog farmer market power—particularly smaller producers located near impacted plants—and undermine pork industry competition.

The federal court’s decision struck down a provision of USDA’s New Swine Inspection System (NSIS) allowing for faster harvest facility line speeds. NSIS, initiated during the Clinton administration and evaluated at five pilot plants over 20 years, was approved for industry-wide adoption in 2019.  NSIS modernized an inspection system that had remained unchanged for more than 50 years.

The court’s ruling will have the opposite effect sought by those seeking to expand the number of meat packing plant facilities. Lawmakers have recently called for increasing the number of pork processing facilities nationwide by bringing smaller state plants up to federal inspection standards. These facilities represent less than one percent of total harvest capacity.

“The U.S. pork production system, the most advanced in the world, is characterized by robust competition, innovation and efficiency. With the stroke of a judge’s pen, the lives of many hog farmers will be upended if this misguided ruling takes effect,” said NPPC President Jen Sorenson, communications director for Iowa Select Farms in West Des Moines, Iowa. “The lost revenue projected by Dr. Hayes is not theoretical; it is based on breeding decisions made several month ago and pigs already in the production cycle that will go to market in a few months.”

According to Dr. Hayes, while the court decision will affect all hog farmers, small hog farmers will disproportionately bear the brunt, especially those near affected processing plants. Michigan pork producer Ed Reed sends 80 percent of his hogs to an affected plant 15 miles away from his farm. “I’m a small farm and we’re trying to capture as much value as we can,” he said. “If we were to slow the plant down…we’re going to have capacity issues,” he said, with the next closest processing plant two-and-a-half hours away. Those added transportation costs may be too much for producers to bear, he noted.

Click here to see more...

Trending Video

How Data Predicts Swine Outbreaks - Swaminathan Jayaraman

Video: How Data Predicts Swine Outbreaks - Swaminathan Jayaraman


In this episode of The Swine it Podcast Show Canada, Swaminathan Jayaraman, Research Assistant and PhD Candidate at Iowa State University College of Veterinary Medicine, explains how integrated data systems can improve disease surveillance in swine production. He discusses combining diagnostics, animal movement data, production records, and spatial analytics to identify risks earlier and support proactive decision-making for PRRS, PED, and swine influenza. Listen now on all major platforms!

"Disease surveillance remains largely reactive because outbreaks are often confirmed only after transmission has already occurred across multiple connected production sites."

Meet the guest: Swaminathan Jayaraman / swamjay is a Graduate Research Assistant at Iowa State University College of Veterinary Medicine. With academic training in management information systems and engineering, he focuses on integrating diagnostic, production, and movement data to improve disease surveillance and decision support in swine production systems. Listen to Swaminathan Jayaraman on The Swine it Podcast Show Canada, available on all major platforms.