Minnesota

CURRENT STRUCTURE AND ECONOMIC IMPORTANCE OF

The Minnesota Pork Industry

The Minnesota pork industry adds significant value to the agricultural economy and is a major contributor to the overall Minnesota economy. Although the size and structure of the Minnesota pork industry has changed over time, current levels of production continue to support jobs and generate earnings in the state economy. In 2021, the sales generated from hog marketings and pork processing supported a total economic contribution of over $1.955 billion in personal income, over $3.359 billion in value added, and more than 33,984 jobs in the Minnesota economy.

Total Economic Contribution

All direct, indirect, and induced economic activity supported by the Minnesota Pork Industry.

33,984

jobs supported by the pork industry

$3.35B+

value added (GDP)

$1.95B+

personal income generated

Hog Farms and Production

Minnesota December 1 Hog Inventory and Share of U.S. Total

There are about 8.9 million hogs in Minnesota. The size of the Minnesota hog herd has varied over time but has trended upward from 5.8 million head in 2000 to 8.9 million head in 2021. As of December 2021, Minnesota farms accounted for 12% of the total U.S. hog inventory.

The number of Minnesota hog farms has decreased slightly in recent years. From 1997 to 2012, the number of farms decreased from 7,765 to 3,355, and by 2017 Minnesota had 3,225 farms raising hogs.

Minnesota Hog Farms and Hogs per Farm
Minnesota Hog Inventory Distribution

Approximately 65% of Minnesota hogs are on farms with 5,000 or more in inventory. 27 percent of Minnesota’s hogs are on farms with 2,000 to 4,999 head, and eight percent are on farms with less than 2,000 head.

Hog Production Costs and Returns

In 2021, hog sales (including market hogs, sows, and feeder pigs) totaled $3.28 billion. In addition to these farm-level effects, the pork industry supports other industries by purchasing inputs, supplies, and services. Based on long-run prices and aggregated production budgets for the Minnesota pork industry, producing 16.1 million market hogs in Minnesota generates over $2.164 billion in feed, labor, equipment, and other production-related expenditures.

Hog Production by the Numbers

3,225

number of farms with hogs

16.1M+

hogs marketed annually

$3.28B

cash receipts from hog sales

Minnesota Estimated Share of Production Costs

Feed is the largest single expenditure category in pork production. With 16.1 million market hogs produced annually, feed costs for the Minnesota industry exceed $1.263M. Other direct expenses, like energy and transportation, add over $454.7M, employee compensation totals over $187.9M, and facility-related expenses add over $258.3M.

Jobs Supported by the Minnesota Pork Industry

The direct, indirect, and induced activity generated by the Minnesota pork industry in 2021 supported a total of 33,984 jobs and over $1.955B in personal income. Minnesota hog farms and pork processors directly employed 11,431 workers and paid over $629.878 million in total wages. This includes 3,125 full-time-equivalent workers at the farm level and an estimated 7,783 employees in the hog slaughter and processing sectors.

 

The purchases of input supplies and services in the pork industry indirectly supported 13,915 jobs and over $849.2 million in personal earnings for Minnesota workers. Beyond this, the induced impacts stemming from employee spending included 8,638 additional jobs and over $476.578 million in personal income earned. Many of these jobs were within the agriculture and manufacturing industries, as well as industries like trucking, finance, insurance, real estate, trade, and other service sectors.