Q. How extensive is production contracting in the U.S.?
A. Approximately 50,000 farms in the
U.S. (of approximately 2 million) have production contracts.
Half of the contracts are for poultry/egg production,
with hog production a distant second. Poultry and hogs
combined account for more than 60 percent of all production
contracts in U.S. agriculture. Since production contracting
is dominated by certain livestock commodities, its incidence
closely follows the extent and location of livestock production.
In three Southeastern States (AL, GA, and NC) and Delaware, contract
production accounts for more than half of the States' total value
of agricultural production.
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