October 3, 2013

Smithfield Foods Inc. had informed US hog producers that it will adjust its pricing method for hogs until the federal government reopens.

Smithfield prices live hogs based on USDA market reports, which have been suspended.

Due to the federal government shutdown, the USDA, which issues thousands of market reports that the agriculture industry uses to price everything from hogs and cattle to soy and corn, pulled the plug on those reports.

Based on USDA market hog prices on September 30, Smithfield will determine the price it pays for cash hogs for each day until the government reopens through October 4.

If the shutdown extends beyond October 4, Smithfield said it would "evaluate the market conditions to establish a fair market value."

Smithfield added that all packers will continue to record all trades to be compliant with Mandatory Price Reporting, and will be sending those trades to the USDA. But the government has said it "will not retroactively report the daily spot market for days their office is closed."