When James Cromwell was handed the screenplay for Babe, he thumbed through it to see how many lines he had. He saw that he didn't have that many (he had only 171 words of spoken dialogue, and 61 words that were sung), so decided that he would do it as a nice easy film. What he didn't realize was that he would have more screen time in this film than any of his previous films.
The talking pig is a combination of 48 real Yorkshire pigs plus an animatronic double. A makeup artist added toupee and eyelashes to each, and computer digitization manipulated pictures of the snout to make the pig appear to talk.
The sheepdog championship takes place at the Kingsmith Fairground. The electrician whose truck Rex hitches a ride on is named Dick. Near the beginning of the film, the trophy Esme Hoggett polishes is for the Kingsmith District Show. These are tributes to author Dick King-Smith.
The location of the film is never mentioned, though scenery and architecture suggest somewhere in Great Britain. However, except for two announcers only heard for a few seconds on the TV, everyone speaks with American accents. Moreover, cars were driven on the right side of the road, while in Great Britain cars are driven on the left.