Secretary Naig Discusses Pork Losses During Sigourney Visit

SIGOURNEY – Iowa Secretary of Agriculture Mike Naig toured the Sigourney branch of Hog Slat on Feb. 9. Hog Slat sells and constructs equipment for pig and poultry farms from more than 100 locations across the U.S. and Canada. Naig asked the employees of Hog Slat how the pork industry was doing. Employee Jason Hixson noted that, although Hog Slat was being hired for remodels, new construction for hog barns has ground to a halt. Regional Manager Chase Voss explained that many farmers had aging barns, but were holding off on repairing them unless absolutely necessary and instead waiting for the market to rebound.

Naig stated that he had heard similar things from other farmers. He brought up a farmer who told him that, when the hog market collapsed in 1998, it at least bounced back, unlike the current low prices, which have dropped and stayed low. Naig dryly noted that hog prices are projected to dramatically improve, while still being losses for most farmers.

“I don’t really think there’s really been a sustained market this tough,” said Voss. “You know, there’s definitely been some bottoming out, like 2008, but for this length of time, that’s really the big thing. That’s really making it tough, how long it’s going on.”

Naig noted that, despite high international demand and low feed costs, hog prices were hammered by a convergence of different issues, including Proposition 12, diseases spreading through farms, high labor and material costs, and inflation affecting what customers buy from stores. “If it was one thing, you can see your way out of it,” said Naig.

Naig noted that the supply chain problems during the COVID-19 pandemic were especially hard on farmers, who have narrow windows to do their work. He pointed out that, for example, a six week delay on seed or planting equipment is enough to make farmers miss the spring planting window completely.

“The pork industry is seeing significant economic losses,” said Naig. “2023 was a very challenging year. Projections for 2024 are better, but still, the pork producers will be losing money on every hog sold. That’s obviously not a sustainable situation...There’s always reason to be optimistic here in Iowa as we head into spring, but there are economic headwinds, to be sure.