Production characteristics of channel catfish (Ictalurus punctatus) reared in cages and open ponds were compared. Fish reared in open ponds had significantly better growth and food conversion ratios than fish reared in cages. Cages and open ponds stocked with fish which were closely graded in size produced fish with less size variability at harvest compared to ponds and cages stocked with nongraded and coarsely graded fish. The decrease in size variability at harvest was reflected in a greater proportion of marketable fish.