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Abstract
Ninety farm households located
in East-Central Saskatchewan
were surveyed to determine the
characteristics that affected their
decision to enter into, expand,
or not expand cow-calf
production between 1995 and
2001. Of the 90 farm
households, 36 had increased,
40 had maintained, and 14
had decreased the size of their
beef cowherd between 1995
and 2001. The study found first
that given the effect of age on
the probability of beef cowherd
expansion, new entrants to
farming will be needed if beef
cattle numbers are to
significantly expand. Second,
in order to cover the high
switching costs involved with
shifting from grain to cow-calf
production, the farm household
typically needs to borrow
money. Third, farm households
that owned beef cows in 1995
are the group of farm
households that have been
predominantly responsible for
the expansion of the beef
cowherd in the research area
between 1995 and 2001.
Fourth, farm households with
farm operators earning income
from off-farm employment were
hindered from expanding their
beef cowherd between 1995
and 2001. Farm advisors
should realize farm households
consider many other factors in
their decision making than just
on-farm economics.