Pork producers are wrapping up one of their most profitable years in recent history, with profitability expected to continue well into 2026, according to Kyle Hurley, vice president of agribusiness lending for GreenStone Farm Credit Services.
The industry has seen exceptional profitability throughout 2025, with producers averaging $40 or more profit per head over the last four months per Iowa State University’s pork profitability estimates. Even in October, it reported average profits of $34 per head.
"It's been a really good year for most producers," Hurley said. "We've had profits on average for the last 17 months, which is a pretty long run."
Key drivers in pork industry profitability
The higher hog profitability in 2025 was driven by several key factors:
- Strong market hog prices throughout the year, supported by high value of pork carcasses and increased demand.
- Lower feed costs, mainly due to cheaper corn and soybean meal.
- The gap between hog prices and feed costs was unusually wide.
- High prices for competing proteins — like beef — boosted demand for pork.
- Growing domestic demand for pork remains a bright spot, with approximately 21.7 billion pounds consumed domestically in 2024.
- The industry is capitalizing on food trends including increased interest in high-protein diets and promoting pork's taste, freshness and value proposition.
- Export demand remained relatively strong, even with some trade disruptions. July 2025 pork exports were 3% lower than July 2024, primarily driven by an 11% decrease in shipments to Mexico.
- Exports still represent a significant portion of production, with an estimated 7.1 billion pounds (more than 25%) exported in 2024, valued at $8.6 billion, according to the United States Department of Agriculture (USDA).
- The USDA pork cut-out — a composite value of pork primal cuts that estimates carcass worth — has stayed well above typical seasonal levels. “This high meat value supports cash hog prices because packers want the hogs when carcasses are valuable,” said Hurley.
Disease challenges persist
Despite strong profits, producers still face significant disease pressures that can impact operations:
- PEDv (Porcine Epidemic Diarrhea) and PRRS (Porcine Reproductive and Respiratory Syndrome) continue disrupting production nationally.
- Michigan farms experienced several PEDv outbreaks early this winter.
- PEDv typically results in about four weeks of lost pig production per farm.
- Surviving pigs often grow more slowly.
“This has been an exceptionally bad year for PRRS (Porcine Reproductive and Respiratory Syndrome) which has had an impact on the number of market hogs available,” said Mary Kelpinski, CEO of the Michigan Pork Producers Association.
Farms maintaining good herd health have seen the best profitability, while those battling disease have faced reduced margins, Hurley says.
Supply remains stable
The latest USDA Hog and Pigs report shows the U.S. sow herd down 2% from a year ago, farrowing intentions slightly lower and no significant expansion expected in pork production for next year.
Total 2025 pork production is forecast at 27.6 billion pounds, a decrease of less than 1% compared with last year’s production, according to USDA.
"Despite the profitability, there isn't much of an expectation that there's going to be a lot more hogs produced," said Hurley.
Several factors prevent rapid industry growth, including high capital requirements for expansion, limited processing capacity, ongoing disease risks and asset fixity from previous investments.
“There's room for some more pigs, but not a lot more pigs without some sort of larger structural change within the industry,” Hurley said. “If the country continues to produce roughly the same amount of pork, in the short term, I think there's some good profit opportunities.”
The current profitability stands in sharp contrast to 2023, which Hurley called "one of the absolute worst in the history of the industry."
In 2023, producers faced high feed costs from expensive corn and soybean meal, rising labor wages and utility costs and low hog prices.
“Those conditions were worse than the infamous 1998 crisis for some producers,” he says.
New marketing strategies
In May 2025, the pork industry launched the "Taste What Pork Can Do" campaign focusing on digital marketing based on consumer segmentation studies and pork’s flavor and versatility. The campaign also touts the health benefits of pork, while reaching out to different consumer groups with targeted messaging.
“Focusing on flavorful, familiar cuts, such as bacon, sausage and ham, the campaign will support category growth and ultimately encourage consumers to expand their pork experience with fresh products,” Kelpinski said. “Highlighting pork as an ingredient reminds consumers of pork’s flavor profile and versatility, characteristics that encourage consumers to explore more cultural and regional cuisines. The goal is to be the number one protein in flavor and expand pork from a special occasion protein to an everyday choice.”
Also pushing to advance the industry are technological improvements in 2026, including increased AI applications at the farm level, wider adoption of existing technologies, and efficiency improvements from new innovations.
Bottom line for producers
When comparing current futures prices for hogs against projected corn and soybean meal costs, "There are a lot of reasons to remain optimistic," Hurley said.
Producers who maintained good herd health and managed price risk through hedging, purchasing Livestock Risk Protection (LRP) or Livestock Gross Margin (LGM) insurance, or forward contracting have positioned themselves well for continued success into 2026, Hurley says.
