Patience paid in the hog market in 2025, says Lee Schulz, chief economist at Ever.Ag. But he’s quick to point out that patience should not be confused with complacency.
“In economics, patience is measured as the rate of time preference,” he explains. “This concept reflects the trade-off a person makes between having something now versus having something later. A higher rate indicates a stronger preference for immediate rewards, while a lower rate signifies a greater willingness to wait for future benefits.”
Patience can be an effective price risk management strategy, Schulz says.
“Earlier on for 2025, utilizing tools like long put options and Livestock Risk Protection (LRP) insurance provided a price floor at profitable prices while allowing for upside participation in the market,” he says. “As lean hog futures rallied to contract highs, hedging opportunities presented themselves.”
Every year, the industry learns a few lessons that will hopefully stick in the years to come.
Proactive Positioning
Chris Ford, vice president corporate swine lender with Farm Credit, agrees that disciplined risk management separated top performers in 2025. He also says this past year taught the pork industry the value of maintaining focus on crush margins and protecting positions when opportunities arise.
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