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Determining Optimal Replacement Age of Beef Cows in the Presence of Stochastic Elements

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  • Bentley, Ernest
  • Waters, James R.
  • Shumway, C. Richard

Abstract

Feeder calf producers face a problem common to all owners of productive assets: how long should the asset (brood cow) be used before it is replaced? Expected productivity of a brood cow can be measured by two parameters: (1) the likelihood that she will wean a calf, and (2) its anticipated weight when weaned. Both are independent functions of the cow's age which decline annually after reaching peaks in the early years of her productive life. The calf producer who expects to maximize profits in the long run must choose an optimal rate of replacement for his brood cows.

Suggested Citation

  • Bentley, Ernest & Waters, James R. & Shumway, C. Richard, 1976. "Determining Optimal Replacement Age of Beef Cows in the Presence of Stochastic Elements," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 8(2), pages 13-18, December.
    • Handle: RePEc:cup:jagaec:v:8:y:1976:i:02:p:13-18_01
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    References listed on IDEAS

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    1. Oscar R. Burt, 1965. "Optimal Replacement under Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(2), pages 324-346.
    2. Nelson, Kenneth E. & Purcell, Wayne D., 1972. "A Quantitative Approach to the Feedlot Replacement Decision," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 4(1), pages 143-149, July.
    3. Nelson, Kenneth E. & Purcell, Wayne D., 1972. "A Quantitative Approach To The Feedlot Replacement Decision," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 4(1), pages 1-7, July.
    4. R. K. Perrin, 1972. "Asset Replacement Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 60-67.
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    Cited by:

    1. Feuz, Dillion, 1991. "The Optimal Prebreeding Target Weight for Replacement Beef Heifers," WAEA/ WFEA Conference Archive (1929-1995) 321483, Western Agricultural Economics Association.
    2. 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.
    3. Webber, C. A. & Graham, J. D. & MacGregor, R. J., 1988. "A Regional Analysis of Direct Government Assistance Programs in Canada and their Impacts on the Beef and Hogs Sectors," Working Papers 244071, Agriculture and Agri-Food Canada.
    4. Kay, Ronald D. & Rister, M. Edward, 1977. "Income Tax Effects On Beef Cow Replacement Strategy," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(1), pages 1-4, July.
    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. Frasier, Marshall & Pfeiffer, George & Azzam, Azzeddine, 1991. "Optimal Replacement and Management Strategies for Beef Cows," WAEA/ WFEA Conference Archive (1929-1995) 321434, Western Agricultural Economics Association.
    7. Ospina, Enrique & Shumway, C. Richard, 1979. "Disaggregated Analysis Of Short-Run Beef Supply Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(2), pages 1-18, December.
    8. Gutierrez, Paul H. & Dalsted, Norman L. & Jonk, Yvonne C., 1989. "Selection and Development of the Replacement Asset: The Case of the Replacement Beef Heifer," WAEA/ WFEA Conference Archive (1929-1995) 244997, Western Agricultural Economics Association.
    9. Bentley, Ernest & Shumway, C. Richard, 1981. "Adaptive Planning Over the Cattle Price Cycle," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(1), pages 139-148, July.
    10. Falconer, Lawrence L. & Long, Charles R. & McGrann, James M., 1996. "A Decision Support Aid For Beef Cattle Investment Using Expert Systems," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(1), pages 1-13, July.
    11. Clary, Gregory M. & Jordan, Johnny W. & Thompson, Carl Eugene, 1984. "Economics Of Purchasing Genetically Superior Beef Bulls," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-6, December.
    12. Stockton, Matthew C. & Van Tassell, Larry W., 2007. "The Cattle Price Cycle: An Exploration in Simulation," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37564, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

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