NAICS 112210 Quarterly Industry Report
Hog and Pig Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112210Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112210) provides valuation-focused intelligence for professionals assessing hog and pig farming businesses. Additional data is drawn from Bureau of Labor Statistics[5], U.S. Census Bureau[6].. Data is sourced from USDA NASS hog inventory reports[7], USDA ERS livestock market analysis[8], and SBA size standards[9] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for swine production enterprises.
Industry Definition & Overview
Hog and Pig Farming (NAICS 112210) encompasses establishments primarily engaged in raising hogs and pigs for meat production, including farrow-to-finish operations, feeder pig producers, and finishing operations that grow pigs to market weight. The USDA National Agricultural Statistics Service[3] reported roughly 75.8 million hogs and pigs on U.S. farms as of December 2024, with a breeding inventory of 6.0 million head and market hog inventory of 69.8 million head. Industry revenue reached an estimated $26.4 billion in 2024, reflecting the sector's position as the second-largest U.S. livestock industry behind cattle.
Vertical integration and contract production dominate the modern hog industry, with operations owning over 5,000 head controlling a majority of total inventory through contract grower arrangements. Iowa, Minnesota, North Carolina, Illinois, and Indiana rank as the top hog-producing states, collectively accounting for over 60% of national production. The USDA Economic Research Service[4] documents a long-term structural shift from diversified family farms raising small herds to specialized, large-scale operations using confinement housing and advanced genetics. Revenue depends on live hog market prices, feed costs (primarily corn and soybean meal), and production efficiency metrics including feed conversion ratios and pigs weaned per sow.
Business valuations for hog operations must evaluate confinement facility capacity and condition, environmental permit status, contract grower agreements, genetic programs, biosecurity infrastructure, and proximity to packing plant capacity. The capital-intensive nature of modern hog production facilities, combined with thin operating margins and high throughput volumes, requires careful analysis of replacement costs, remaining useful life of buildings and equipment, and the strength of marketing relationships.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for hog and pig farming operations
- Revenue and profitability analysis across farrow-to-finish, feeder pig, and contract grower business models
- SBA size standard classification and lending threshold data for NAICS 112210
- Comparable transaction data from recent hog operation sales, acquisitions, and facility expansions
- Market structure analysis covering vertical integration, contract production, and independent operations
- Workforce and labor cost benchmarking for farm managers, animal technicians, and maintenance staff
- Industry risk assessment including feed cost volatility, disease outbreaks, and pork export market exposure
- Environmental compliance overview covering manure management, air quality permits, and waste disposal regulations
- Capital expenditure profiles for confinement barns, feed systems, waste lagoons, and biosecurity upgrades
- Production efficiency metrics including pigs weaned per sow, feed conversion ratios, and mortality rates
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Hog and Pig Farming | 1122 |
| NAICS Industry | Hog and Pig Farming | 11221 |
| National Industry | Hog and Pig Farming | 112210 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311611 | Animal (except Poultry) Slaughtering | Animal slaughtering establishments that serve as the primary downstream buyer for market-weight hogs produced by farming operations |
| 311612 | Meat Processed from Carcasses | Meat processed from purchased carcasses facilities that further fabricate pork into consumer-ready cuts, bacon, ham, and sausage products |
| 311119 | Other Animal Food Manufacturing | Other animal feed manufacturing operations producing specialized swine rations, starter feeds, and nutritional supplements for hog farms |
| 424520 | Livestock Merchant Wholesalers | Livestock wholesale dealers and marketing agents that support hog placement transactions and coordinate delivery to packing plants |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and grain product merchant wholesalers supplying corn, soybean meal, and other feed ingredients that constitute primary input costs |
| 541940 | Veterinary Services | Veterinary services providers delivering herd health programs, disease diagnostic services, and biosecurity consulting to commercial swine operations |
SBA Lending Summary
32
Total SBA Loans
$28.9M
Total Loan Volume
$904K
Average Loan Size
11 yrs
Average Loan Term
11.44%
Average Interest Rate
232
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[10] classifies Hog and Pig Farming (NAICS 112210) with a size standard of $4.0 million in average annual receipts. Operations at or below this threshold qualify as small businesses for SBA-backed lending[11], government contracting preferences, and USDA support programs. Given the industry's trend toward large-scale contract production, many commercially active hog operations exceed this threshold, while independent and smaller contract growers typically qualify. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 8 | $23.7M | $3.0M |
| 2 | Readycap Lending, LLC | 16 | $3.2M | $200K |
| 3 | Northeast Bank | 8 | $2.0M | $250K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for hog farming?
Hog and Pig Farming is classified under NAICS code 112210, covering establishments primarily engaged in raising hogs and pigs for meat production, including farrow-to-finish, feeder pig, and finishing operations.
What is the SBA size standard for hog farming?
The SBA[10] sets the size standard for NAICS 112210 at $4.0 million in average annual receipts, qualifying eligible hog farming operations for small business lending programs and government contracting preferences.
How many hogs are in the United States?
The USDA NASS[3] reported roughly 75.8 million hogs and pigs on U.S. farms as of December 2024, including 6.0 million breeding animals and 69.8 million market hogs across all production stages.
What factors drive hog farm valuations?
Key valuation drivers include confinement facility capacity and condition, environmental permit status, contract grower agreements with integrators, genetic program quality, biosecurity infrastructure, and proximity to packing plants as tracked through USDA AMS[14] market reports.
How does contract production work in hog farming?
Contract growers provide facilities and labor while integrator companies supply pigs, feed, veterinary services, and marketing. Growers receive per-head fees, reducing their market price risk. The USDA ERS[4] reports that contract arrangements account for the majority of U.S. hog production.
Which states lead in hog production?
Iowa leads U.S. hog production by a wide margin, followed by Minnesota, North Carolina, Illinois, and Indiana per USDA NASS inventory data[7], with these five states accounting for over 60% of the national hog inventory.
What environmental regulations affect hog farm valuations?
Hog operations must comply with EPA[15] concentrated animal feeding operation (CAFO) regulations covering manure storage, nutrient management plans, and water discharge permits. State-level regulations on air quality, setback distances, and waste disposal further impact facility permitting and enterprise value.
What are the primary costs in hog production?
Feed costs, primarily corn and soybean meal, typically represent 55% to 65% of total production expenses. Other major costs include facility depreciation and maintenance, labor, veterinary and health programs, genetics, and utilities as documented through USDA ERS cost-of-production estimates[4].
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]USDA National Agricultural Statistics Service nass.usda.gov
- [4]USDA Economic Research Service ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]U.S. Census Bureau census.gov
- [7]USDA NASS hog inventory reports nass.usda.gov
- [8]USDA ERS livestock market analysis ers.usda.gov
- [9]SBA size standards sba.gov
- [10]SBA sba.gov
- [11]SBA-backed lending sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]USDA AMS ams.usda.gov
- [15]EPA epa.gov
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