IDEAS home Printed from https://ideas.repec.org/p/ags/sdsusp/32019.html
   My bibliography  Save this paper

Discontinued Voluntary Price Reports For Live Cattle: Will They Be Missed By Producers?

Author

Listed:
  • Fausti, Scott W.
  • Diersen, Matthew A.
  • Sun, He

Abstract

One consequence of the new federal mandatory price reporting regime in the livestock industry was the discontinuation of eight regional voluntary price reports for live slaughter cattle. The economic implication for price discovery and market transparency in those affected regional markets is investigated. Two sets of price reports, collected from discontinued price reports for a five-year period just prior to the elimination by the Agricultural Marketing News Service, were analyzed to determine if any of the price series, could be used as a replacement for the discontinued reports in their respective regions. We conclude that price discovery and market transparency were degraded in western regional markets to a greater extent than Midwest regional markets. Empirical results suggest that the lack of adequate alternative sources of market information in western regional markets may result in further deterioration in market transparency and price discovery in the future.

Suggested Citation

  • Fausti, Scott W. & Diersen, Matthew A. & Sun, He, 2003. "Discontinued Voluntary Price Reports For Live Cattle: Will They Be Missed By Producers?," Economics Staff Papers 32019, South Dakota State University, Department of Economics.
    • Handle: RePEc:ags:sdsusp:32019
    DOI: 10.22004/ag.econ.32019
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32019/files/sp030004.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cheryl J. Wachenheim & Eric A. DeVuyst, 2001. "Strategic response to mandatory reporting legislation in the U.S. livestock and meat industries: Are collusive opportunities enhanced?," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 177-195.
    2. William G. Tomek, 1980. "Price Behavior on a Declining Terminal Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 434-444.
    3. Lawrence, John D. & Shafer, John & Hayenga, Marvin L., 1996. "Valuing Public Price Reporting: The Iowa Experience," Staff General Research Papers Archive 5148, Iowa State University, Department of Economics.
    4. Savin, N Eugene & White, Kenneth J, 1978. "Testing for Autocorrelation with Missing Observations," Econometrica, Econometric Society, vol. 46(1), pages 59-67, January.
    5. Unknown, 1997. "Price Discovery in Concentrated Livestock Markets: Issues, Answers, Future Directions," Research Institute on Livestock Pricing 232724, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    6. Azzeddine Azzam, 2003. "Market Transparency and Market Structure: The Livestock Mandatory Reporting Act of 1999," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 387-395.
    7. Lawrence, John D. & Shaffer, John A. & Hayenga, Marvin L., 1996. "Valuing Public Price Reporting: The Iowa Experience," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 14(1), pages 1-18.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A., 2007. "Public Price Reporting in the Cash Market for Live Cattle: A Spatial Market Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-13, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fausti, Scott W. & Diersen, Matthew A., 2003. "Did The Voluntary Price Reporting System Fail To Provide Price Transparency In The Cash Market For Dressed Steers: Evidence From South Dakota," Economics Staff Papers 32012, South Dakota State University, Department of Economics.
    2. Fausti, Scott W. & Diersen, Matthew A., 2005. "Price Transparency in the Voluntary Price Reporting System for Live Cattle: Theory and Empirical Evidence from South Dakota," Economics Staff Papers 32027, South Dakota State University, Department of Economics.
    3. Fausti, Scott W. & Keimig, R. & Diersen, Matthew A. & Kim, Han & Santos, Joseph M., 2002. "Mandatory Versus Voluntary Price Reporting: An Empirical Investigation Of The Market Transparency Controversy," Economics Staff Papers 32024, South Dakota State University, Department of Economics.
    4. Fausti, Scott W. & Diersen, Matthew A., 2003. "Did The Voluntary Price Reporting System Fail To Provide Price Transparency In The Cash Market For Dressed Steers: Evidence From South Dakota," Economics Staff Papers 32012, South Dakota State University, Department of Economics.
    5. Fausti, Scott W. & Qasmi, Bashir A. & Landblom, Douglas G. & Beutler, Martin & Johnson, Patricia S. & Gates, Roger N. & Patterson, Hubert H. & Salverson, Robin R., 2007. "Public Price Reporting, Marketing Channel Selection, and Price Discovery: The Perspective of Cow/Calf Producers in the Dakotas," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(1), pages 1-18.
    6. Fausti, Scott W. & Diersen, Matthew A., 2005. "Price Transparency in the Voluntary Price Reporting System for Live Cattle: Theory and Empirical Evidence from South Dakota," Economics Staff Papers 32027, South Dakota State University, Department of Economics.
    7. Fausti, Scott W. & Diersen, Matthew A., 2004. "The Voluntary Reporting System's Ability to Provide Price Transparency in the Cash Market for Dressed Steers: Evidence from South Dakota," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-14, December.
    8. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A., 2007. "Public Price Reporting in the Cash Market for Live Cattle: A Spatial Market Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 336-348, October.
    9. Joseph, Kishore & Garcia, Philip & Peterson, Paul E., 2016. "Does the Boxed Beef Price Inform the Live Cattle Futures Price?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236166, Agricultural and Applied Economics Association.
    10. Sarah Grunewald & Ted C. Schroeder & Clement E. Ward, 2004. "Cattle Feeder Perceptions of Livestock Mandatory Price Reporting," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 521-538.
    11. Njoroge Kenneth, 2003. "Information Pooling and Collusion: Implications for The Livestock Mandatory Reporting Act," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-15, May.
    12. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2007. "Public Reporting of Fed Cattle Grid Prices: Policy Reform Consequences," Economics Staff Papers 7297, South Dakota State University, Department of Economics.
    13. Cheryl J. Wachenheim & Eric A. DeVuyst, 2001. "Strategic response to mandatory reporting legislation in the U.S. livestock and meat industries: Are collusive opportunities enhanced?," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 177-195.
    14. Martin, Beutler & Fausti, Scott & Qasmi, Bashir, 2006. "Perspectives of Cow/Calf Producers in the Dakotas - Marketing Channel Selection," Issue Briefs 2006479, South Dakota State University, Department of Economics.
    15. Azzam, Azzeddine M. & Salvador, Santiago, 2004. "Information pooling and collusion: an empirical analysis," Information Economics and Policy, Elsevier, vol. 16(2), pages 275-286, June.
    16. Kenneth Njoroge & Amalia Yiannaka & Konstantinos Giannakas & Azzeddine M. Azzam, 2007. "Market and Welfare Effects of the U.S. Livestock Mandatory Reporting Act," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 290-311, July.
    17. Pruitt, J. Ross & Tonsor, Glynn T. & Brooks, Kathleen R. & Johnson, Rachel J., 2013. "End User Preferences for USDA Market Information," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143007, Southern Agricultural Economics Association.
    18. Chanjin Chung & Johnna Rushin & Prasanna Surathkal, 2018. "Impact of the livestock mandatory reporting act on the vertical price transmission within the beef supply chain," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 562-578, June.
    19. Pozo, Veronica F. & Bejan, Vladimir & Tejeda, Hernan, 2016. "Disentangling Supply and Demand Shocks to Identify Changes in the Live Cattle’s Market Structure Post Livestock Mandatory Price Reporting Act," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236234, Agricultural and Applied Economics Association.
    20. Koontz Stephen R & Ward Clement E, 2011. "Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-33, July.

    More about this item

    Keywords

    Livestock Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:sdsusp:32019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/edsdsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.