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Elements Of Cattle Feeding Profitability In Midwest Feedlots

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  • Lawrence, John D.
  • Wang, Zhi
  • Loy, Daniel D.

Abstract

Conventional wisdom and earlier research have concluded that cattle feeding profitability is more determined by feeder and fed cattle prices than by animal performance. This study examined cross-sectional and time-series data from over 1600 pens of cattle in more than 220 feedlots in the upper Midwest where weather and lot conditions are thought to influence feedlot profitability. In addition to input and output prices and animal performance, other factors found to significantly impact cattle feeding profitability were sex, placement weight, facility design, and to a lesser extent placement season.

Suggested Citation

  • Lawrence, John D. & Wang, Zhi & Loy, Daniel D., 1999. "Elements Of Cattle Feeding Profitability In Midwest Feedlots," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(2), pages 1-9, August.
    • Handle: RePEc:ags:joaaec:15377
    DOI: 10.22004/ag.econ.15377
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    References listed on IDEAS

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    1. Oscar R. Burt & Robert M. Finley, 1968. "Statistical Analysis of Identities in Random Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 734-744.
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    1. Avent, R. Keith & Ward, Clement E. & Lalman, David L., 2002. "Asymmetric Value Of Preconditioning Programs For Feeder Cattle," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36559, Western Agricultural Economics Association.
    2. Maples, Joshua G. & Coatney, Kalyn T. & Riley, John M. & Karisch, Brandi B. & Parish, Jane A. & Vann, Rhonda C., 2015. "Comparing Carcass End-Point And Profit Maximization Decision Rules Using Dynamic Nonlinear Growth Functions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(1), pages 1-25, February.
    3. Lewis, Karen & Griffith, Andrew & Boyer, Christopher & Rhinehart, Justin, 2015. "Returns to Retained Ownership through Finishing for Beef Cattle Originating from Tennessee," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196620, Southern Agricultural Economics Association.
    4. Perry, William R. & Marsh, Thomas & Jones, Rodney & Sanderson, M.W. & Sargeant, J.M. & Griffin, D.D. & Smith, R.A., 2007. "Joint product management strategies for E. coli O157 and feedlot profits," Food Policy, Elsevier, vol. 32(5-6), pages 544-565.
    5. Forristall, Cody & May, Gary J. & Lawrence, John D., 2002. "Assessing The Cost Of Beef Quality," 2002 Conference, April 22-23, 2002, St. Louis, Missouri 19060, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    6. Maples, Joshua G. & Harri, Ardian & Riley, John Michael & Tack, Jesse B., 2013. "Marketing Margins and Input Price Uncertainty," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150604, Agricultural and Applied Economics Association.
    7. Belasco, Eric J. & Taylor, Mykel R. & Goodwin, Barry K. & Schroeder, Ted C., 2009. "Probabilistic Models of Yield, Price, and Revenue Risks for Fed Cattle Production," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(1), pages 1-15, April.
    8. Tang, Minfeng & Lewis, Karen E. & Griffith, Andrew P. & Boyer, Christopher N., 2016. "Identifying Factors that Impact Returns to Retained Ownership of Cattle," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229766, Southern Agricultural Economics Association.
    9. Braelyn Moltz & Mark Yu & Edward Osei & W. Brandon Smith & Brant Poe, 2019. "The Economic Analysis of Corn Grain Optimization and Price Variation for Cattle on Feed in Texas," Agriculture, MDPI, vol. 9(7), pages 1-12, July.
    10. Janzen, Matthew & Coatney, Kalyn T. & Rivera, Daniel & Harri, Ardian & Riley, John Michael & Busby, Darrell & Groves, Matt, "undated". "Fed Cattle Marketing: A Field Experiment," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252844, Southern Agricultural Economics Association.
    11. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2014. "Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162323, Southern Agricultural Economics Association.

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    Keywords

    Livestock Production/Industries;

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