The Truth About Farmers

What is Contract Farming?

In the world of agriculture, you often hear terms like “contract farming” and “integrators,” but many people don’t have a good understanding about what these words mean or how these farms operate.

 In North Carolina, most farms are operated by family farmers. Many of these families have been growing crops and raising livestock for generations.

 Beginning in the late 1980s and early 1990s, the concept of “contract farming” began to gain popularity. This is a system where family farmers sign an agreement to raise animals — typically pigs, chickens and turkeys — for companies such as Smithfield, Prestage Farms, or Butterball. These are typically larger companies, known as “integrators.” The name stems from the fact that the entire process of raising animals and selling the final product is integrated and controlled by the company that owns the animals.

For larger companies that sell nationally to large supermarket or retail chains, they have to provide a product that is consistent and uniform. It’s hard to do that if each farmer is feeding their animals different diets or using different breeds of pigs. So these companies are integrated in that they own the pigs and control the genetics, diet, and veterinary care to ensure that the final product is a consistent one for customers.


 How Contract Farming Works

Although the integrator owns and controls the big aspects of production, it’s the contract farmers who make the process work. In the simplest terms, integrators provide the animals and the resources they need, while farmers are entrusted to raise the pigs, chickens, and turkeys in a safe and responsible way until they are ready to go to the processing plants.  

The family farmers provide the land, the barns, and the labor needed to properly care for the animals. The integrators provide feed, access to veterinary care, and guidance on how to raise animals most efficiently. 

Contract farming is a team effort, with both sides operating under more predictable conditions while sharing the benefits and risks associated with livestock production.


 Why Choose Contract Farming?

Many family farmers choose the contract farming model because it provides a predictable income regardless of changing market conditions. The farmers are free to focus on what they do best — raising healthy animals in a safe and responsible way — without worrying about the buying feed, accessing veterinary care, or issues unrelated to raising the animals.

When market conditions are volatile — like when corn prices are high and market prices are low — it can be a stressful time for independent farmers. Contract growers don’t have to worry about those type of market fluctuations. They raise the animals, and the integrator takes it from it there.

Integrators benefit from greater predictability, too. They take comfort in knowing that their animals are being raised in a similar environment, consistently receiving the same feed and benefiting from expert veterinary care.

While integrators may have preferences in how animals are raised, family farmers still enjoy flexibility in how they operate their farm. The farmer has the ultimate responsibility for managing the farm and raising the animals.

The contract farming model has worked well in North Carolina for decades, but it is not without risk. Challenging market conditions have forced some integrators to reduce their operations or cancel contracts. That can create challenges for farmers who have grown accustomed to a predictable cycle of raising animals.

Contract farming has led to great strides in how we raise livestock through the years. While we don’t know exactly how this system will continue to evolve, North Carolina’s farm families are resilient. Our love for the land and our commitment to the animals we raise remain the foundation on which North Carolina’s agriculture industry stands.

Factory Farm Redefined

What is a factory farm?

A quick Google search of the term “factory farm” describes these farms as industrialized, intensive agriculture operations designed to maximize profits at the expense of the animals, environment, and public health.

Let’s work on redefining that.

In no way is it a factory. It’s a farm. Most likely, it is a family farm.
Is it larger than 50 years ago? Sure.
Does the size change what it is? Nope. Do words like “industrialized” or “intensive” change it? Again, no.

98% of all farms are family-owned and operated.

Those families are utilizing technology to be efficient and produce more with less.

Their efficiency and innovation has indeed been designed to maximize profits. After all, a farm is a business.

Let’s pause here for a second. Does the fact that a farm is a business change anything? Some would say it means farmers are motivated by profit, only caring about the bottom dollar. Here’s the thing—cutting corners and irresponsibly raising animals doesn’t mean more profit. It eats into your profits. Well-cared for animals and efficient facilities mean a higher quality product. Lowering your product’s worth is not profitable.

Back to efficiency and innovation. It has been designed to do more than maximize profits. It also maximizes resources.  In fact, they are using less land, water, and energy to produce pork than ever before.

One way these “factory farms” have done this is to raise animals indoors. This allows them to use less while producing more. It also protects the animals from weather, disease, and predators. But does this protect the environment or public health?

Yes. By maximizing resources, they are being more sustainable. They are feeding more people with less resources (as has been previously mentioned). To raise the same number of animals on pasture would mean a lot more land, a lot less containment, and less control. Pasture isn’t bad. It has its place. Raising animals indoors isn’t bad either, though. It also has its place.

Farmers are maximizing profits through innovation and efficiency because of the animals, environment, and public health, not at the expense of.

Now that that’s settled, let’s amend the definition.

Factory Larger farms are (most likely) family-run industrialized, intensive agriculture operations designed to maximize profits, technology, and resources at the expense because of the animals, environment, and public health.