Excerpts: A live grading program with the payment of price differentials for different grades of hogs has become an accepted practice and is now followed by several marketing agencies and meat packers. Great progress has been made through adopting definite grades of live hogs and interest in marketing hogs more nearly on their merits is growing in all segments of the industry. Interest in price differentials for live graded hogs has been increasing among cooperative and private marketing groups, as well as slaughterers, for several years. Almost all segments of the livestock marketing and processing industry have recognized the need for buying and selling hogs on the basis of the cut-out value. Adoption of new U. S. Department of Agriculture live hog grades in 1952 encouraged wider acceptance and use of grades and price differentials in buying and selling live hogs. This study, based on data from grading live hogs and the figures reflecting cut-out results in 1953-54 was designed, therefore, to provide working experience and shed additional light on this very complex problem. This meant checking results of handling graded hogs through regular marketing channels and testing the hogs at packing plants where they were slaughtered and processed under commercial packer methods to determine their value according to grades. A further objective was to supply farmers and their marketing organizations with factual cut-out data secured on commercial scale operations.