As of mid-year 2025, the U.S. swine industry is enjoying a cautiously optimistic period, supported by stronger margins, easing feed costs and steady domestic demand. However, lingering headwinds — particularly finishing space shortages, regulatory burdens and high construction costs — require producers to take a strategic and financially disciplined approach to sustain profitability and long-term stability.
Production and Feed Cost Relief
U.S. pork production is expected to remain steady in 2025. While growth in the sow herd has slowed, production per sow continues to increase, driven by improved genetics, better herd health and more precise nutritional strategies.
A key positive this year is the decline in feed costs. Corn has dropped below $4 per bushel, with cash prices as low as $3.50, while soybean meal is trading around $260 to $270 per ton. This has significantly reduced input costs for farrow-to-finish operations, where feed typically accounts for 60% to 70% of total production expenses.
These favorable feed prices are enabling many producers to achieve profits that exceed their 12-month margin targets, with average margins currently around $30 per head — providing much-needed relief after two consecutive years of financial stress.