There is a long history of animals as gifts/prizes such as for dowrys in marriages.
I can see maybe it marginalizes the value of an animal's life and thus the prize is in bad taste (but then again this is Iowa and these are farmers).
It might be surprising to learn but Des Moines is actually a fairly populous city with office buildings and fast food restaurants and everything! Few of its citizens are farmers.
1. You don't support domesticated animals and/or the farming of animals
2. You dislike the idea of living things being transferrable goods
3. You fear for the welfare of the animal after being given away
Is it one of these or is there another reason? I think it's an interesting conversation to have.
Not that it makes it better if you don't support raising animals for slaughter at all, but you shouldn't worry that it's going to be more cruel to the animal.
A better argument would be that the animal doesn't care (because it is an animal).