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Abstract
This study develops the concept of a corn price multiplier which quantifies the effect of a change in corn price on feeder cattle price. Estimation of the multiplier is accomplished using a partial adjustment model of feeder calf prices which directly incorporates elements of break-even budget analysis. Because it includes technical parameters related to cattle feeding, this model provides information on how changes in these factors affect the relationship between corn and feeder calf prices. This information will provide insight into the degree to which cattle producers can offset the effect of high grain prices by altering feeding programs.