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An Evaluation of Purebred Bull Pricing: Implications for Beef Herd Management

Author

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  • Atkinson, Rebecca
  • Sanders, Dwight R.
  • Jones, Karen
  • Altman, Ira J.

Abstract

The selection of herd bulls is important in determining profitability of commercial ranchers and cow-calf operators as well as purebred producers. In this research, the key attributes of bulls – based on visual, performance, and ultrasound data – are valued using a traditional hedonic pricing model. The data are collected from the annual bull test trial and sale at Southern Illinois University Carbondale. The results suggest that buyers at the SIUC Beef Evaluation Station are willing to pay more for bull characteristics associated with calving ease and weaning weights. For instance bulls with a combination of both lower birth weight Expected Progeny Differences (EPDs) and high yearling weight EPDs than average can command premiums of over $1,150 per head or 67 percent above the average sale price. Farm managers can use this information in the selection of herd bulls while purebred operators can attempt to select for the most valuable traits.

Suggested Citation

  • Atkinson, Rebecca & Sanders, Dwight R. & Jones, Karen & Altman, Ira J., 2010. "An Evaluation of Purebred Bull Pricing: Implications for Beef Herd Management," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2010, pages 1-9, November.
    • Handle: RePEc:ags:jasfmr:96418
    DOI: 10.22004/ag.econ.96418
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    File URL: https://ageconsearch.umn.edu/record/96418/files/337_Altman.pdf
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    References listed on IDEAS

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    1. John M. Marsh, 2003. "Impacts of Declining U.S. Retail Beef Demand on Farm-Level Beef Prices and Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 902-913.
    2. Lawrence, John D. & Yeboah, Godfred, 2002. "Estimating The Value Of Source Verification Of Feeder Cattle," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(2), pages 1-13.
    3. Holt, John D. & Fields, Deacue & Prevatt, J. Walter & Kriese-Anderson, Lisa, 2004. "Producer Valuation Of Herd Bull Characteristics," 2004 Annual meeting, August 1-4, Denver, CO 20214, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Lawrence, John D. & Yeboah, Godfred, 2002. "Estimating the Value of Source Verification of Feeder Cattle," Staff General Research Papers Archive 10199, Iowa State University, Department of Economics.
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    Cited by:

    1. Bacon, Kevin J. & Cunningham, Samantha & Franken, Jason R., 2017. "Valuing Herd Bull Characteristics: Evidence from Illinois Auction Data," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2017.

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