Market Valuation of Preconditioning Feeder Calves
Preconditioning calf programs, while not new, are becoming more prevalent. They provide benefits to cow-calf producers while adding value for feeder cattle buyers. However, questions remain regarding the economic costs and returns of such programs. A model was estimated with data from three consecutive-day sales, to determine the value that buyers place on preconditioning programs and related feeder cattle traits. Our results indicate that price premiums, although evident, appear to be insufficient by themselves to cover the marginal costs of preconditioning.
Volume (Year): 36 (2004)
Issue (Month): 01 (April)
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- McDonald, R. Allen & Schroeder, Ted C., 2003. "Fed Cattle Profit Determinants Under Grid Pricing," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(01), April.
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"Determinants Of Cattle Finishing Profitability,"
Southern Journal of Agricultural Economics,
Southern Agricultural Economics Association, vol. 24(02), December.
- Langemeier, Michael & Schroeder, Ted & Mintert, James, 1992. "Determinants of Cattle Finishing Profitability," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(02), pages 41-47, December.
- Jan Chvosta & Randal R. Rucker & Myles J. Watts, 2001. "Transaction Costs and Cattle Marketing: The Information Content of Seller-Provided Presale Data at Bull Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 286-301. Full references (including those not matched with items on IDEAS)