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Determinants of Cattle Finishing Profitability

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  • Langemeer, Michael
  • Schroeder, Ted
  • Mintert, James

Abstract

Data from a western Kansas feedlot were analyzed to estimate the quantitative impacts of price and performance variables on profits per head from finishing cattle. Sale prices, feeder prices, and corn prices had the most impact on profit variability over time. Differences in sale prices, feeder prices, and feed conversions were important in explaining the difference in steer and heifer profits over time. Results suggest that breakeven prices should be calculated for a range of fed cattle, feeder, and corn prices, and that these three variables need to be stochastic in representative farm modeling efforts.
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Suggested Citation

  • Langemeer, Michael & Schroeder, Ted & Mintert, James, 1992. "Determinants of Cattle Finishing Profitability," WAEA/ WFEA Conference Archive (1929-1995) 321371, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeaar:321371
    DOI: 10.22004/ag.econ.321371
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    References listed on IDEAS

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    1. Steven T. Buccola, 1980. "An Approach to the Analysis of Feeder Cattle Price Differentials," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 574-580.
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    4. John M. Marsh, 1985. "Monthly Price Premiums and Discounts between Steer Calves and Yearlings," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 307-314.
    5. William M. Edwards & Grytsje T. van der Sluis & Emmett J. Stevermer, 1989. "Determinants of Profitability in Farrow-to-Finish Swine Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 17-25.
    6. E. R. Swanson & V. I. West, 1963. "Statistical Analysis of Feeder Cattle Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(1), pages 146-150.
    7. 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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