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Preconditioning Beef Calves: Are Expected Premiums Sufficient To Justify The Practice?

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  • Dhuyvetter, Kevin C.

Abstract

The concept of preconditioning calves has been around for a long time, yet adoption of the practice has been slow. Current trends in the beef industry likely will increase interest in preconditioning programs. This research estimates premiums received for preconditioned calves and the expected returns from a preconditioning program. Preconditioned calves sold in the fall received a premium of approximately $4.50-$5.50/cwt relative to non-preconditioned calves. Premiums were lower for calves sold in the winter, heavier calves, and when cattle markets were strong. Based on a 45-day post-weaning preconditioning program, cow-calf producers can increase returns about $14/head compared to selling calves at weaning.

Suggested Citation

  • Dhuyvetter, Kevin C., 2004. "Preconditioning Beef Calves: Are Expected Premiums Sufficient To Justify The Practice?," 2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii 36196, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeaho:36196
    DOI: 10.22004/ag.econ.36196
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    Cited by:

    1. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "The Likelihood of Positive Returns from Value-Added Calf Management Practices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(1), pages 125-138, February.
    2. Williams, Galen S. & Raper, Kellie Curry & DeVuyst, Eric A. & Peel, Derrell S. & McKinney, Doug, 2012. "Determinants of Price Differentials in Oklahoma Value-Added Feeder Cattle Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-14, April.
    3. Bulut, Harun & Lawrence, John D., 2007. "The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(3), pages 625-640, December.
    4. Ward, Clement & Ratcliff, Chandra & Lalman, David, 2007. "Price Premiums from a Certified Feeder Calf Preconditioning Program," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2007, pages 1-11.
    5. Schulz, Lee L. & Dhuyvetter, Kevin C. & Doran, Beth, 2014. "Factors Affecting Preconditioned Calf Price Differentials: How much do Market and Sale Conditions Matter?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170570, Agricultural and Applied Economics Association.
    6. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "Reducing Self-Selection Bias in Feeder Cattle Premium Estimates Using Matched Sampling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-15, April.
    7. Johnson, Myriah, 2008. "The Profitability of Preconditioning Calves in Oklahoma Over 10 Years," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2008, pages 1-13.
    8. Schumacher, Tucker & Schroeder, Ted C. & Tonsor, Glynn T., 2012. "Willingness-to-Pay for Calf Health Programs and Certification Agents," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(2), pages 1-12, May.
    9. Zimmerman, Lance C. & Schroeder, Ted C. & Dhuyvetter, Kevin C. & Olson, K.C. & Stokka, Gerald L. & Seeger, Jon T. & Grotelueschen, Dale M., 2012. "The Effect of Value-Added Management on Calf Prices at Superior Livestock Auction Video Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-16, April.
    10. Schumacher, Stephanie & Peel, Derrell S. & Raper, Kellie Curry, 2013. "Non-Adoption of Best Management Practices: Demographics and Adoption Constraints of Oklahoma Cattle Producers," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143094, Southern Agricultural Economics Association.
    11. repec:ags:joaaec:163228 is not listed on IDEAS
    12. Lanfranco, Bruno A. & Castano, Jose Pedro, 2010. "Incidence of Agro-Climate Variability over Grass-Fed Cattle Markets," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61182, Agricultural and Applied Economics Association.

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    Keywords

    Livestock Production/Industries;

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