We combine econometric and financial analyses of the NAHMS 2000 Swine Survey
data to examine whether evidence exists for reducing risk by using
antibiotics for growth promotion (AGP) in the U.S. swine industry. A
stochastic dominance analysis of alternative lengths of time (days) of AGP
application reveals that AGP used in the range of 65–75 days is preferred by
risk-averse producers. Risk is reduced and profits are increased from use of
AGP. The combined impacts of increased average daily gain and decreased
variability in pig live weight increase producer profits by $2.99 per pig
marketed.