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Determination of the Value of Minimum Sire Accuracy Traits

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  • Elliott, Lisa M.
  • Parcell, Joe L.
  • Patterson, David J.

Abstract

Using Missouri Show-Me-Select Replacement Heifers Inc. sale data, this article uses hedonic modeling to assess the marginal implicit values of physical and genetic characteristics, expected performance characteristics of calves, and market factors to bred heifer price. In 2008, a higher quality standard, known as Tier II, was created combining minimum expected progeny difference (EPD) accuracies for a heifer’s sire with previous heifer standards. Heifer characteristics and market factors as well as yearling and carcass weight EPDs were found to significantly influence heifer price. Results suggest that Tier II heifers receive a premium compared with traditional Show-Me-Select heifers.

Suggested Citation

  • Elliott, Lisa M. & Parcell, Joe L. & Patterson, David J., 2013. "Determination of the Value of Minimum Sire Accuracy Traits," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(2), pages 1-17, May.
    • Handle: RePEc:ags:joaaec:149101
    DOI: 10.22004/ag.econ.149101
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    1. Joe L. Parcell & Jason R.V. Franken & Maria Cox & David J. Patterson & Richard F. Randle, 2010. "Buyers’ perceptions of importance and willingness‐to‐pay for certain attributes of source and production verified bred heifers," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 463-470, September.
    2. Parcell, Joseph L. & Franken, Jason R.V. & Schafer, Daniel & Patterson, David J. & John, Mike & Kerley, Monty S. & Haden, Kent, 2011. "Coordinating Sire Genetics in a Synchronized AI Program," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-12, June.
    3. DeeVon Bailey & Monte C. Peterson & B. Wade Brorsen, 1991. "A Comparison of Video Cattle Auction and Regional Market Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 465-475.
    4. Ariel Pakes, 2003. "A Reconsideration of Hedonic Price Indexes with an Application to PC's," American Economic Review, American Economic Association, vol. 93(5), pages 1578-1596, December.
    5. Parcell, Joseph L. & Schroeder, Ted C. & Hiner, Frina D., 1995. "Determinants Of Cow-Calf Pair Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(2), pages 1-13, December.
    6. Clement E. Ward, 1992. "Inter-Firm Differences in Fed Cattle Prices in the Southern Plains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 480-485.
    7. Epple, Dennis, 1987. "Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 59-80, February.
    8. Avent, R. Keith & Ward, Clement E. & Lalman, David L., 2004. "Market Valuation of Preconditioning Feeder Calves," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-11, April.
    9. Parcell, Joseph L. & Dhuyvetter, Kevin C. & Patterson, David J. & Randle, Richard, 2005. "The Value of Carcass Characteristic EPDs in Bred Heifer Price," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19041, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    10. Gedikoglu, Haluk & Parcell, Joseph L., 2009. "Forecasting Future Sales and Profit for Value-Added Agriculture," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(3), pages 1-8, November.
    11. Kevin C. Dhuyvetter & Ted C. Schroeder, 2000. "Price-Weight Relationships for Feeder Cattle," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(3), pages 299-310, November.
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    1. Allan F. Pinto & Brittney K. Goodrich & William Kelley & Max Runge, 2023. "Price determinants of bred heifers: Do reputations matter?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 5-23, March.

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