Smithfield Foods has successfully sold a 1,371-acre parcel in northern Missouri that once housed the Premium Standard Farms complex, marking a significant moment in the history of U.S. pork production. The Virginia-based company, which acquired the facility in 2007, auctioned the property earlier this month as part of its broader strategy to streamline operations.
Located in Sullivan County, Missouri, the land includes a shuttered sow farm, over 650 acres of tillable land, pastures, ponds, and a 27-acre lake. The facility was once the second-largest pork producer in the nation, operating under Smithfield’s Murphy-Brown division. At its peak, the operation managed 132 farms and maintained partnerships with 109 contract farms, demonstrating the company’s vertically integrated business model that spanned from farm to production plant.
However, in the face of shifting industry dynamics and a restructuring plan, Smithfield laid off 92 employees last fall as part of its decision to close several sow farms. This auction represents the latest step in that plan, with the property attracting a diverse group of successful bidders, including a partnership, a husband and wife, and a team of Amish buyers. The winning bids totaled $5.64 million for 10 tracts of land, translating to an average price of $4,160 per acre.
Interestingly, the final sale price was below the estimated cropland value of $4,910 per acre and pasture value of $2,650 per acre, as reported by the USDA’s Land Values 2024 Summary. Additionally, the sale comes with a deed restriction preventing hog production or swine confinements on the property, regardless of the buyers’ future plans.
This sale reflects broader trends in the pork industry as companies like Smithfield adapt to new economic realities and changing consumer demands. The historic property, once a cornerstone of Smithfield’s operations, will now find new life under its new owners, albeit without its former role in pork production.
