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3 Key Business Areas Hog Farmers Should Prioritize in 2025


As spring approaches, we’re entering a new season—not only in agriculture but in the broader economic and political landscape. Recent policy shifts, including new tariffs and evolving global trade relationships, have introduced a heightened level of uncertainty for the ag industry.

For hog farmers, contract growers and ag business owners, this evolving environment makes thoughtful business planning more important than ever. While many factors are beyond your control, focusing on what is within your control can help your operation stay resilient and even grow.

Here are three key areas every hog producer should prioritize in 2025.

 

  1. Monitor Financial Performance and Prioritize Wisely

Understanding your numbers is essential in any market—but especially in volatile times.

  • Review your financials regularly with key decision-makers. Compare budget to actual results and investigate any discrepancies.
  • Update cost structures to reflect changing input costs or throughput adjustments.
  • Prioritize capital expenditures strategically. With limited resources, make sure investments align with your long-term goals.
  • Communicate consistently with stakeholders so everyone is aligned on priorities and trade-offs.

When decisions are made with clear, up-to-date financial insights, your business is better positioned to adapt and thrive.

 

  1. Seek Strategic Growth Opportunities

Even in challenging environments, opportunities arise, especially for those prepared to act.

Well-capitalized hog farmers with strong teams may find themselves in a position to expand as others scale back or exit. We continue to see some producers, whether in swine, row crops or other ag sectors, contemplate retirement due to age or ongoing financial pressures.

As some retire, others can consider:

  • Acquiring or leasing assets from exiting farmers
  • Improving operational efficiency through better processes 
  • Maximizing performance without substantial capital investment

Staying alert and agile can help you seize the right opportunities as they emerge.

 

  1. Invest in People: Labor and Leadership Matter

Your team is one of your most valuable assets of your hog operation.

  • Evaluate your current staffing model. Are the right people in the right roles?
  • Recruit or adjust where needed to strengthen your operation.
  • Invest in leadership. Developing your team not only boosts retention, enhances performance and morale.
  • Create development plans and foster open communication between owners, managers and key employees. 

Building a strong team culture now can pay dividends in both day-to-day performance and long-term success.

 

Focus on What You Can Control

Change and uncertainty will always be part of the agriculture landscape. What separates strong operations is the ability to focus on what can be influenced.

Develop a plan. Execute it. Review regularly. Adjust as needed. And don’t go at it alone. Lean on your peers, advisors and ag lending partners for insight and support.

If you’re unsure where to start or need help reviewing your operation’s strategy, Compeer Financial is here to help. Our team of swine industry experts specializes in working with hog producers to navigate complex environments with confidence.

 

Chris

Murphy

 
Senior Swine Lending Specialist
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