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Range Livestock Strategies Given Extended Drought and Different Price Cycles

Author

Listed:
  • Bastian, Christopher
  • Ponnamaneni, Padmaja
  • Mooney, Sian
  • Ritten, John
  • Frasier, W.
  • Paisley, Steven
  • Smith, Michael
  • Umberger, Wendy

Abstract

Portions of the U. S. have recently or are currently experiencing extended periods of drought. Producers considering the purchase of breeding stock to rebuild herds while forage supplies recover could be doing so at or near the top of the current cattle price cycle. This research investigates purchasing additional hay and partial liquidation as management strategies under various scenarios of drought and price cycles. Results indicate that purchasing hay may be a more risky strategy than partial liquidation, and it only provides positive returns over a 12-year planning horizon when extended drought occurs during a trough-to-trough price cycle.

Suggested Citation

  • Bastian, Christopher & Ponnamaneni, Padmaja & Mooney, Sian & Ritten, John & Frasier, W. & Paisley, Steven & Smith, Michael & Umberger, Wendy, 2009. "Range Livestock Strategies Given Extended Drought and Different Price Cycles," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2009, pages 1-11.
    • Handle: RePEc:ags:jasfmr:189859
    DOI: 10.22004/ag.econ.189859
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    File URL: https://ageconsearch.umn.edu/record/189859/files/310_Bastian.pdf
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    References listed on IDEAS

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    1. David C. Hall & Thomas O. Knight & Keith H. Coble & Alan E. Baquet & George F. Patrick, 2003. "Analysis of Beef Producers' Risk Management Perceptions and Desire for Further Risk Management Education," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 430-448.
    2. Dalsted, Norman L. & Sharp, Rodney L. & Tranel, Jeffrey E. & Pritchett, James, 2007. "Investment Analysis—Purchasing Cows and Heifers in a Strong Cattle Market," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2007, pages 1-6.
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    Cited by:

    1. Patalee, M.A. Buddhika & Tonsor, Glynn T., 2021. "Impact of weather on cow-calf industry locations and production in the United States," Agricultural Systems, Elsevier, vol. 193(C).

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