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Assessing the Impact of the COVID-19 Pandemic on Feeder Cattle Prices in Northeast Texas

Author

Listed:
  • Smith, Kelley
  • Lopez, Jose A.
  • Williams, Bob
  • Bakhtavoryan, Rafael

Abstract

This study estimates how COVID has affected feeder cattle prices in Northeast Texas for the period 2019-2021. The study examines preconditioned cattle, which seem to be a less-risky and better-suiting market to some feedlots. The study evaluates two models, a separate means ANOVA model and a multiple regression model, and uses sales auction data for the months of September from the North East Texas Beef Improvement Organization at the Sulphur Springs Livestock Auction in Sulphur Springs, Texas. A total of 447 lots encompassing 14,941 heads were analyzed to determine the effects of COVID-19 on feeder cattle prices. The study found price differences in preconditioned feeder cattle among various COVID stages. The September 2021 and the September 2020 auction prices were higher and statistically different from the September 2019 auction by $10.28/cwt and $7.09/cwt respectively, regardless of weight, average, and sex. In addition, several interaction variables as well as variables such as average weight, heifers, and year were statistically significant. This study assists feeder cattle producers, beef organizations, ranchers, and feedlots in the area in assessing the impact of the COVID-19 pandemic.

Suggested Citation

  • Smith, Kelley & Lopez, Jose A. & Williams, Bob & Bakhtavoryan, Rafael, 2023. "Assessing the Impact of the COVID-19 Pandemic on Feeder Cattle Prices in Northeast Texas," 2023 Annual Meeting, February 4-8, 2023, Oklahoma City, Oklahoma 338472, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea22:338472
    DOI: 10.22004/ag.econ.338472
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    References listed on IDEAS

    as
    1. Williams, Galen S. & Raper, Kellie Curry & DeVuyst, Eric A. & Peel, Derrell S. & McKinney, Doug, 2012. "Determinants of Price Differentials in Oklahoma Value-Added Feeder Cattle Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(01), pages 1-14, April.
    2. Martinez, Charley & Griffith, Andrew P., 2020. "Tennessee Cattle Marketing Influenced by COVID-19," Extension Reports 303907, University of Tennessee, Department of Agricultural and Resource Economics.
    3. Martinez, Charley & Griffith, Andrew P., 2020. "Tennessee Cattle Marketing Influenced by COVID-19," Extension Reports 303869, University of Tennessee, Department of Agricultural and Resource Economics.
    4. Hardin, Dan & Saghaian, Sayed, 2014. "Factors that Affect Seasonality in Kentucky Feeder Calf Prices and How Calving Dates Affect Cow-Calf Enterprise Profitability," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162495, Southern Agricultural Economics Association.
    5. Griffith, Andrew P. & Martinez, Charles, 2020. "Tennessee Feeder Cattle Prices Influenced by COVID-19," Extension Reports 303908, University of Tennessee, Department of Agricultural and Resource Economics.
    6. Griffith, Andrew P. & Martinez, Charles, 2020. "Tennessee Feeder Cattle Prices Influenced by COVID-19," Extension Reports 303915, University of Tennessee, Department of Agricultural and Resource Economics.
    7. Martinez, Charley & Griffith, Andrew P., 2020. "Tennessee Cattle Marketing Influenced by COVID-19," Extension Reports 303870, University of Tennessee, Department of Agricultural and Resource Economics.
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    Keywords

    Demand and Price Analysis; Livestock Production/Industries;

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