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Determinants of Cattle Finishing Profitability

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  • Langemeier, 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.

Suggested Citation

  • Langemeier, Michael & Schroeder, Ted & Mintert, James, 1992. "Determinants of Cattle Finishing Profitability," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 41-47, December.
    • Handle: RePEc:cup:jagaec:v:24:y:1992:i:02:p:41-47_01
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    References listed on IDEAS

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    3. 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.
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    6. 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.
    7. 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.
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