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Determinants Of Cattle Finishing Profitability

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Author Info
Langemeier, Michael
Schroeder, Ted
Mintert, James
Abstract

Data from a western Kansas feedlot were analyzed to estimate the quantitive impacts of price and performance variables on profits per head from finishing cattle. Sale prices, feeder prices, and corn prices had the most impact on profit variability over time. Differences in sale prices, feeder prices, and feed conversions were important in explaining the difference in steer and heifer profits over time. Results suggest that breakeven prices should be calculated for a range of fed cattle, fedder, and corn prices, and that these three variables need to be stochastic in representative farm modeling efforts.

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Publisher Info
Article provided by Southern Agricultural Economics Association in its journal Southern Journal of Agricultural Economics.

Volume (Year): 24 (1992)
Issue (Month): 02 (December)
Pages:
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Handle: RePEc:ags:sojoae:29637

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Related research
Keywords: Demand and Price Analysis;

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  1. Forristall, Cody & May, Gary J. & Lawrence, John D., 2005. "Assessing the Cost of Beef Quality," Staff General Research Papers 12278, Iowa State University, Department of Economics. [Downloadable!]
  2. Zhao, Huan & Du, Xiaodong (Sheldon) & Hennessy, David A., 2009. "Pass-Through in United States Beef Cattle Prices," Staff General Research Papers 13093, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  3. Mark R. Manfredo. & Raymond M. Leuthold, 1999. "Market Risk Measurement and the Cattle Feeding Margin: An Application of Value-at-Risk," Finance 9908002, EconWPA. [Downloadable!]
  4. Gloy, Brent A. & Hyde, Jeffrey & Ladue, Eddy L., 2001. "Dairy Farm Management And Long-Term Farm Financial Performance: Evidence From Panel Data," 2001 Annual meeting, August 5-8, Chicago, IL 20515, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Mark, Darrell R. & Schroeder, Ted C. & Jones, Rodney, 2000. "Identifying Economic Risk In Cattle Feeding," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(3). [Downloadable!]
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