U.S. FEEDER CATTLE PRICES: EFFECTS OF FINANCE AND RISK, COW-CALF AND FEEDLOT TECHNOLOGIES, AND MEXICAN FEEDER IMPORTS

Analysis of U.S. feeder steer prices normally includes fed cattle prices and feed grain costs. An expanded econometric model which investigates finance cost, profit risk, hay cost, technology, and Mexican feeder cattle import shares is estimated. Results indicate statistical significance of nearly all variables. The increase in feeder import shares contributed to $0.60/cwt of the $24.48/cwt decline in real feeder price from 1980-1999. Improved technology in producing feeder calves had reduced feeder prices more substantially, by $4. 86/cwt from 1980-1999. Increased feedlot technology through cost savings has increased feeder price. Feedlot risk management and macro-economic policies affecting the U.S. prime interest rate could continue to affect feeder prices.


Issue Date:
2001-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31054
Published in:
Journal of Agricultural and Resource Economics, Volume 26, Number 2
Page range:
463-477
Total Pages:
15




 Record created 2017-04-01, last modified 2018-01-12

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