ECONOMICS OF PURCHASING GENETICALLY SUPERIOR BEEF BULLS

Net present value analysis is used to derive the marginal bid price for a beef herd sire from after-tax net revenues and cash flow influenced by genetic improvements. Marginal bid price represents the additional amount a producer could pay, above the present value of the current beef herd sire, for a sire expected to exhibit superior performance as reflected by increased average weaning weights of offspring. An analysis of the profitability of purchasing a breeding bull for a commercial beef cow herd is presented as an application. Several alternative scenarios illustrate the impact of selected determinants on the marginal bid price of a bull.


Issue Date:
1984-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/29739
Published in:
Southern Journal of Agricultural Economics, Volume 16, Number 2
Page range:
31-36
Total Pages:
6




 Record created 2017-04-01, last modified 2017-08-24

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