The 450 pigs in David Reinecker's finishing barn seem the picture of health. Housed in two rows of 11 wood-slatted pens, they scamper to greet a stranger and jostle to nosh from a trough that provides an unlimited supply of feed.

"If the pigs are healthy, they continue to grow," says the tall, ruddy-faced 54-year-old. Yet Reinecker, who owns 600 pigs, is losing $10 on each one he sells. And he's in better shape than most hog farmers.

The U.S. government is rushing to deliver swine flu vaccine at record speed, but there won't be a quick fix for pork producers, who have been financially battered by the virus. Unfounded fears that the H1N1 virus can be contracted by eating pork have contributed to the worst financial crisis in the history of hog farming.

The main causes of the 2-year-old downturn are soaring feed costs and the global recession. But the H1N1 scare accelerated a slump in pork exports last spring as Russia and China banned U.S. shipments. Russia lifted its embargo several weeks ago; China said late last month it will follow. But it's doubtful that sales to China will increase substantially, because the country wants to shift to more domestic producers, says analyst Jim Clarkson of A&A Trading.

It's as terrible an "economic situation as we've seen," says Neil Dierks, National Pork Producers Council CEO.