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Dynamic Effects of Drought on the U.S. Beef Supply Chain

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  • Countryman, Amanda M.
  • Paarlberg, Philip L.
  • Lee, John G.

Abstract

This research employs an agricultural sector model that links seasonal crop production with disaggregated livestock production sectors, in tandem with observed quarterly data on U.S. drought conditions to assess the long term economic implications of drought for U.S beef cattle producers. Short term impacts show increases in feed costs as well as increases in cattle slaughter resulting from drought-induced culling. The price of live cattle decreases in the short run; however, feed prices remain above baseline levels, and beef cattle breeding inventories decline in the long run, leading to fewer calves moving through the supply chain.

Suggested Citation

  • Countryman, Amanda M. & Paarlberg, Philip L. & Lee, John G., 2016. "Dynamic Effects of Drought on the U.S. Beef Supply Chain," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(3), pages 459-484, December.
    • Handle: RePEc:cup:agrerw:v:45:y:2016:i:03:p:459-484_00
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    Cited by:

    1. Hrozencik, R. Aaron & Perez-Quesada, Gabriela & Bocinsky, Kyle, 2024. "The Stocking Impact and Financial-Climate Risk of the Livestock Forage Disaster Program," Economic Research Report 340568, United States Department of Agriculture, Economic Research Service.
    2. repec:ags:aaea22:335468 is not listed on IDEAS
    3. Stacy Sneeringer & Gianna Short & Matthew MacLachlan & Maria Bowman, 2020. "Impacts on Livestock Producers and Veterinarians of FDA Policies on Use of Medically Important Antibiotics in Food Animal Production," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 674-694, December.

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