How Much Does It Cost to Start a Hog Farm?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
Hog farming can be a profitable agricultural business, but it requires a significant startup investment. Many farmers underestimate the full financial commitment needed to launch a successful hog operation, including insurance coverage that protects the farm from risk.
Below is a breakdown of the complete cost of starting a hog farm, with realistic averages based on industry data and operational best practices.
A professional insurance plan protects your investment from the start. You can request a tailored insurance quote from Wexford Insurance to understand your coverage needs and costs.
Average Startup Cost Breakdown
Most commercial hog farms require between $350,000 and $1.5 million to launch, depending on scale and production model (farrow-to-finish, finishing, or breeding).
Land and Facility Costs
Land purchase or lease: $4,000–$15,000 per acre
Utilities setup and grading: $40,000–$120,000
Barn construction (farrowing, nursery, finishing): $300,000–$900,000
Waste management systems: $50,000–$180,000
Biosecurity fencing and sanitation: $5,000–$30,000
Water supply and treatment: $10,000–$60,000
These assets must be protected with commercial property insurance to prevent financial loss from storms, fires, or equipment failure.
Livestock Investment
Breeding sows: $350–$800 each
Boars: $700–$2,000 each
Feeder pigs: $50–$120 each
Artificial insemination costs: $60–$300 per sow annually
A mid-size farm may begin with 300–800 hogs, making livestock one of the largest upfront investments.
Feed and Nutrition Costs
Feed is the largest recurring expense in any hog farming operation.
Feed Costs
Annual feed cost per hog: $80–$150
Grain storage systems: $5,000–$30,000
Feed mixers and transport equipment: $8,000–$50,000
Managing nutrition effectively supports growth rates and improves profit margins.
Equipment and Technology Investment
Modern hog farms rely heavily on automation and monitoring systems.
Essential Equipment
Automatic feeders: $5,000–$40,000
Ventilation and climate control: $20,000–$180,000
Waste pumping systems: $7,500–$40,000
Backup generators: $4,000–$30,000
Power washers and sanitation tools: $2,000–$15,000
Farm vehicles: $25,000–$130,000
Technology improves animal welfare and helps prevent disease outbreaks—reducing losses.
Labor and Staffing Costs
Labor costs vary by farm size and operational model.
Employee Costs
Annual wages for a mid-sized farm: $80,000–$300,000
Training and certification: $2,000–$10,000
When hiring employees, workers’ compensation insurance is often legally required and protects both the worker and your business.
Insurance Costs for Hog Farms
Insurance is an essential part of starting a hog farm and must be included in your cost planning. It protects your investment from financial loss caused by accidents, disease, property damage, and liability claims.
Average cost: $800–$3,000 per year
Average cost: $2,500–$15,000 per year
Average cost: $3,000–$12,000 per year
Average cost: $1,200–$6,500 per vehicle per year
Average cost: 2–4% of livestock value
Final Thoughts
Launching a hog farm is a major financial commitment that extends beyond land and livestock. Insurance plays a critical role in protecting your assets and ensuring long-term sustainability. With the right coverage in place, you can operate with confidence and focus on growth, efficiency, and profitability.
For expert insurance guidance and a customized quote, reach out to Wexford Insurance.
Contact us today.