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Framework for Economic Analysis of Grain versus Harvested Roughage for Feedlot Cattle

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  • Ray F. Brokken
  • D. A. Dinius
  • T. M. Hammonds
  • John Valpey

Abstract

Traditional models for assessing technical and economic efficiency of cattle feeding were found inadequate. An alternative framework is developed for estimating effects of changes in ration nutrient concentration on animal performance under a range of production conditions and types of animals. The framework is incorporated in a dynamic profit function and its use discussed and demonstrated under various optimizing criteria. High energy rations remained economical even at relatively high grain prices. This framework implies sigmoid shaped grain-roughage isoquants: concave to the origin over the finishing range of grain-roughage ratios, and convex at lower grain-roughage ratios.

Suggested Citation

  • Ray F. Brokken & D. A. Dinius & T. M. Hammonds & John Valpey, 1976. "Framework for Economic Analysis of Grain versus Harvested Roughage for Feedlot Cattle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(2), pages 245-258.
    • Handle: RePEc:oup:ajagec:v:58:y:1976:i:2:p:245-258.
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    File URL: http://hdl.handle.net/10.2307/1238975
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    Citations

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    Cited by:

    1. Buccola, Steven T. & Bentley, Ernest & Jessee, Warren B., 1980. "The Role Of Market Price-Weight Relationships In Optimal Beef Cattle Backgrounding Programs," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-8, July.
    2. Brokken, Ray F., 1977. "The Case Of A Queer Isoquant: Increasing Marginal Rates Of Substitution Of Grain For Roughage In Cattle Finishing," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 1(1), pages 1-4, June.
    3. Buccola, Steven T. & Jessee, Warren B., 1979. "The Role Of Market Price-Weight Relationships In Optimal Beef Cattle Management Models," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278302, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Harrison, Virden L., 1977. "Optimizing Marketing Dates for Steers by Accounting for Individual Differences," Agricultural Economic Reports 307659, United States Department of Agriculture, Economic Research Service.
    5. Melton, Bryan Edwin, 1977. "An economic analysis of concentrate versus roughage feeding for finishing beef steers," ISU General Staff Papers 197701010800008622, Iowa State University, Department of Economics.
    6. Eisele, Kendall & Ritten, John & Bastian, Christopher & Paisley, Steven & Lake, Scott, 2012. "Economic Comparison of Weaning and Feeding Strategies for Beef Production," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2012, pages 1-11.
    7. Brokken, Ray F. & O'Connor, Carl W. & Nordblom, Thomas L., 1980. "Costs of Reducing Grain Feeding of Beef Cattle," Agricultural Economic Reports 307887, United States Department of Agriculture, Economic Research Service.

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