An Explanation of the Earnings Variation across Bovine Veterinarians in Private Practice during 2014

The ability of society to respond to global protein demand, prevent food animal disease outbreaks, and protect public health will in part rely on the availability of rural, food animal veterinarians. The rising cost and declining net present value of the DVM degree implies that the ability to supply such veterinarians will rely on an understanding of economic incentives these professions face. The objectives of this study are to identify factors that influence bovine veterinarian income and explain variation in earnings across practitioners. Attributes and characteristics of veterinarians and their practices were collected through a 2015 American Association of Bovine Practitioners survey and then used to explain veterinarian income through statistical analysis. Results indicate that the greatest incentives exist for practice owners, specialists, and in regions with large concentrations of livestock. Additionally, establishment of a strong client base and field experience will serve private practitioners better than pursuing additional education beyond the DVM degree. These variations explain nearly half of the variation in income. Human capital measures should inform future research as the remaining variation is attributed to unobserved ability.