IDEAS home Printed from https://ideas.repec.org/a/ags/wjagec/32070.html
   My bibliography  Save this article

Cattle Ranching Production And Marketing Strategies Under Combined Price And Weather Risks

Author

Listed:
  • Ethridge, Don E.
  • Zhang, Ping
  • Dahl, Bill E.
  • Ervin, R. Terry
  • Rushemeza, Justin

Abstract

A procedure using linear programming and Bayesian analysis for incorporating risks associated with cattle prices and forage yields was developed for maximizing net ranch income in the Southern Plains of Texas. Risk-efficient production/marketing (buy/sell) strategies included strategies which assume normal and low cattle prices and low and normal forage production. Only one of the enterprises in the risk-efficient strategies constituted a traditional marketing approach of spring buying and fall selling.

Suggested Citation

  • Ethridge, Don E. & Zhang, Ping & Dahl, Bill E. & Ervin, R. Terry & Rushemeza, Justin, 1990. "Cattle Ranching Production And Marketing Strategies Under Combined Price And Weather Risks," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-11, December.
    • Handle: RePEc:ags:wjagec:32070
    DOI: 10.22004/ag.econ.32070
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32070/files/15020175.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32070?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Abelardo Rodriguez & R. G. Taylor, 1988. "Stochastic Modeling of Short-Term Cattle Operations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 121-132.
    2. VanTassell, L. W. & Richardson, J. W. & Conner, J. R., "undated". "Incorporating Environmental Uncertainties In A Ranch Simulation," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269979, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. repec:ags:agsaem:288652 is not listed on IDEAS
    4. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
    5. Olson, Kent D. & Mikesell, Chris L., 1988. "The Range Stocking Decision And Stochastic Forage Production," Staff Papers 13502, University of Minnesota, Department of Applied Economics.
    6. Musser, Wesley N. & Shurley, W. Donald & Williams, Floyd W., 1980. "An E-V Analysis Of Beef Calf Backgrounding Systems In Georgia," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(2), pages 1-6, December.
    7. Tesfaye Gebremeskel & C. Richard Shumway, 1979. "Farm Planning and Calf Marketing Strategies for Risk Management: An Application of Linear Programming and Statistical Decision Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 363-370.
    8. Blake, Martin J. & Gray, James R., 1981. "A Method For Determining Ranch Profit Probabilities When Livestock Yields Are Normally Distributed," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(01), pages 1-10, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Xuecai & Dorfman, Jeffrey H. & McKissick, John & Turner, Steven C., 2001. "Optimal Marketing Decisions for Feeder Cattle under Price and Production Risk," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 431-443, December.
    2. Popp, Michael P. & Faminow, Merle D. & Parsch, Lucas D., 1998. "Adoption Of Backgrounding On Cow-Calf Farms," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20800, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Fausti, Scott W. & Johnson, Brad & Epperson, William & Grathwohl, Nancy, 2003. "Risk and the Economic Incentive to Retain Ownership of Steer Calves," Economics Staff Papers 32023, South Dakota State University, Department of Economics.
    4. Popp, Michael P. & Faminow, Merle D. & Parsch, Lucas D., 1999. "Factors Affecting The Adoption Of Value-Added Production On Cow-Calf Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(01), pages 1-12, April.
    5. Colette, W. Arden & Almas, Lal K. & Hittle, Chad A., 2003. "Utilizing Expected Revenue In Selecting Optimal Marketing Alternatives For Fixed Resource Cow/Calf Operators In The Texas Panhandle," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35187, Southern Agricultural Economics Association.
    6. Bunn, Julie A., 1998. "Government Policy, Wind Erosion, And Economic Viability In Semi-Arid Agriculture: The Case Of The Southern Texas High Plains," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(2), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lambert, David K., 1989. "Calf Retention And Production Decisions Over Time," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), pages 1-11, July.
    2. Apland, Jeffrey & Hauer, Grant, 1993. "Discrete Stochastic Programming: Concepts, Examples And A Review Of Empirical Applications," Staff Papers 13793, University of Minnesota, Department of Applied Economics.
    3. Fausti, Scott W. & Johnson, Brad & Epperson, William & Grathwohl, Nancy, 2003. "Risk and the Economic Incentive to Retain Ownership of Steer Calves," Economics Staff Papers 32023, South Dakota State University, Department of Economics.
    4. Hatch, L. Upton & Atwood, Joseph A. & Segar, James, 1989. "An Application Of Safety-First Probability Limits In A Discrete Stochastic Farm Management Programming Model," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(01), pages 1-8, July.
    5. Anderson, Kim B. & Mapp, Harry P., Jr., 1996. "Risk Management Programs In Extension," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), pages 1-8, July.
    6. Rawlins, Richard B. & Bernardo, Daniel J., 1991. "Incorporating Uncertainty In The Analysis Of Optimal Beef-Forage Production Systems," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(01), pages 1-13, July.
    7. Praneetvatakul, Suwanna & Waibel, Hermann, 2006. "Impact Assessment of Farmer Field School Using A Multi-Period Panel Data Model," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25499, International Association of Agricultural Economists.
    8. Serrao, Amilcar & Coelho, Luis, 2004. "Cumulative Prospect Theory: A Study Of The Farmers' Decision Behavior In The Alentejo Dryland Region Of Portugal," 2004 Annual meeting, August 1-4, Denver, CO 20245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Mackinnon, John & Reinikka, Ritva, 2000. "Lessons from Uganda on strategies to fight poverty," Policy Research Working Paper Series 2440, The World Bank.
    10. Magnan, Nicholas & Spielman, David J. & Lybbert, Travis J. & Gulati, Kajal, 2015. "Leveling with friends: Social networks and Indian farmers' demand for a technology with heterogeneous benefits," Journal of Development Economics, Elsevier, vol. 116(C), pages 223-251.
    11. Torres Franco, Nicolás Arturo & Dávalos, Eleonora & Morales, Leonardo Fabio, 2021. "Heterogeneous Effects of Agricultural Technical Assistance in Colombia," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 53(4), pages 459-481, November.
    12. Mwambi, Mercy & Depenbusch, Lutz & Bonnarith, Uon & Sotelo-Cardona, Paola & Kieu, Khemrin & di Tada, Nicolas & Srinivasan, Ramasamy & Schreinemachers, Pepijn, 2023. "Can phone text messages promote the use of integrated pest management? A study of vegetable farmers in Cambodia," Ecological Economics, Elsevier, vol. 204(PA).
    13. Gomez-Limon, Jose Antonio & Riesgo, Laura & Arriaza Balmón, Manuel, 2003. "Multi-Criteria Analysis Of Factors Use Level: The Case Of Water For Irrigation," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25836, International Association of Agricultural Economists.
    14. Parton, Kevin A., 2009. "Agricultural Decision Analysis: The Causal Challenge," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48150, Australian Agricultural and Resource Economics Society.
    15. Rasmussen, Svend, 2003. "Criteria for optimal production under uncertainty. The state-contingent approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 1-30.
    16. Berg, Ernst & Starp, Michael, 2006. "Farm Level Risk Assessment Using Downside Risk Measures," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25400, International Association of Agricultural Economists.
    17. Hammida, Mustapha & Eidman, Vernon R., 1991. "Livestock And Poultry Production Risk In The United States," Staff Papers 14016, University of Minnesota, Department of Applied Economics.
    18. Gempesaw, Conrado M., II & Tambe, A.M. & Nayga, Rodolfo M., Jr. & Toensmeyer, Ulrich C., 1988. "The Single Index Market Model In Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(2), pages 1-9, October.
    19. Bechtel, Amos I. & Young, Douglas L., 1999. "The Importance Of Using Farm Level Risk Estimates In Crp Enrollment Decisions," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35717, Western Agricultural Economics Association.
    20. Musser, Wesley N. & Tew, Bernard V., 1984. "Use Of Biophysical Simulation In Production Economics," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(01), pages 1-10, July.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32070. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.