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What is the opportunity cost of feeding farm raised grain to hogs?

  • If we feed the corn to the hogs, we defer the use of that money.

  • This adds an additional opportunity costs in the form of interest foregone.

If I sell the corn today, I get $3.50 per bushel in my hand. I can use that money to pay off any debts I may have (saves interest expense), or I can put the money in the bank and draw interest or earn a return on an investment option. If I put that corn in the belly of a hog, it sits there a while. That hog takes time to grow from 40 or 50 pounds to a 250 or 260 pound hog ready for market. All that time, my corn is sitting not making me any money. Therefore, another opportunity cost of feeding corn to any livestock or poultry is the interest forgone during the time the critter is growing.

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