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The Beef Cow Replacement Decision

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  • Mathews, Kenneth H., Jr.
  • Short, Sara D.

Abstract

This analysis examines effects of several common assumptions on net present values (NPVs) of beef cows. While effects on NPVs vary over a price cycle or successive price cycles, several generalities manifest themselves. A cow is not likely to recover the lost revenue from not having just one calf. Incorporating genetic improvement into the herd increases the probability of an older cow being culled. Variable net replacement/culling rates make sense in the context of cattle inventory and price cycles because of the effects cyclical series of prices have on NPV.

Suggested Citation

  • Mathews, Kenneth H., Jr. & Short, Sara D., 2001. "The Beef Cow Replacement Decision," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 19(2), pages 1-21.
    • Handle: RePEc:ags:jloagb:14695
    DOI: 10.22004/ag.econ.14695
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    References listed on IDEAS

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    2. Boyer, Christopher & Burdine, Kenny & Rhinehart, Justin & Martinez, Charley, 2020. "Replacing Late Calving Beef Cows to Shorten Calving Season," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(2), August.
    3. Cook, Billy & Biermacher, Jon T. & Childs, Dan, 2007. "PR - The Value Of Pregnancy Testing Spring-calving Beef Cows," 16th Congress, Cork, Ireland, July 15-20, 2007 345369, International Farm Management Association.
    4. Tubetov, Dulat & Maart, Syster Christin & Musshoff, Oliver, 2012. "Comparison of the Investment Behavior of German and Kazakhstani Farmers: an Experimental Approach," GlobalFood Discussion Papers 122422, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Boyer, Christopher M. & McFarlane, Zach McFarlane & Mulliniks, Travis & Griffith, Andrew P., 2018. "Investment into Developing Heifers: When Does She Become Profitable?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274108, Agricultural and Applied Economics Association.
    6. Tubetov, Dulat & Maart, Syster Christin & Musshoff, Oliver, 2012. "Experimental examination of land investment decisions with volatile returns A comparison between Kazakhstani and German farmers," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122454, European Association of Agricultural Economists.
    7. Griffith, Andrew P. & Boyer, Christopher N. & Thompson, Jada M. & Rhinehart, Justin & Burdine, Kenny & Laurent, Kevin, 2021. "Factors Influencing Bred Heifer Price," Extension Reports 309834, University of Tennessee, Department of Agricultural and Resource Economics.
    8. Xu, Yecheng & Zhang, Yaoqi & Chen, Jiquan & John, Ranjeet, 2019. "Livestock dynamics under changing economy and climate in Mongolia," Land Use Policy, Elsevier, vol. 88(C).

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