Agricultural lenders in the US Midwest are learning to work with a new method of organizing the hog industry - the production contract. The contracting of agricultural production is commonplace throughout the world. The hog industry continues to be a significant sector of US agricultural output, accounting for more than $13 billion in agricultural cash receipts to farmers in 1997. Under the traditional arrangement the grower assumes all production-related risks and all marketing risks. The hog production contract establishes a new division of labor. Under a finishing contract, a contractor supplies young pigs at about 8-to-10 weeks old to the grower who feeds them until they are ready for slaughter at about 6 months of age and weigh 250 pounds.