News

Despite good hog prices, high construction costs are limiting new barn growth for pork producers

The executive director of the Illinois Pork Producers Association says 2025 was a good year for hog prices.

Jennifer Tirey says that despite that, not much growth is expected in the industry in 2026.

“Even though prices are doing well, if a farmer did want to consider building a new barn, it’s very costly right now.”  She says, “That loan ratio is not as positive as we would like.”

She tells Brownfield that while recent interest rate cuts do provide some relief…

“I don’t know that it’s enough of a cut for it to change because you know the per-pig space amount is a lot higher than even just five years ago.”  She says, “I’m not hearing a lot of plans.”

Tirey says further rate cuts may be enough to spur expansion.  However, she says as long as building material costs remain elevated, she doesn’t expect much additional production capacity to be brought online.

AUDIO: Jennifer Tirey – Illinois Pork Producers