COMPARING CARCASS END-POINT AND PROFIT MAXIMIZATION DECISION RULES USING DYNAMIC NONLINEAR GROWTH FUNCTIONS. (26th January 2015)

• Record Type: Journal Article
• Authors: MAPLES, JOSHUA G.; COATNEY, KALYN T.; RILEY, JOHN M.; KARISCH, BRANDI B.; PARISH, JANE A.; VANN, RHONDA C.
• Is Part Of: Journal of agricultural and applied economics. Volume 47:Number 1(2015)
• Page Start: 1
• Page End: 25
• Publication Date: 2015-01-26
• Subjects: Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2014.8
• Languages: English
• ISSNs: 1074-0708

Abstract

<abstract abstract-type="normal"> <title>Abstract</title> <p>This article develops a market timing decision rule for cattle feeders based on profit maximization. We then compare it with the "status quo" strategy of feeding cattle to a targeted carcass end point. We estimate individual nonlinear dynamic growth functions to derive each animal's value of the marginal product in relation to days on feed. Given individual marginal factor costs, our results indicate that the use of a profit maximization rule could have increased average profits by $16.56 to $21.09 per head for the cattle of known age, and $7.67 to $11.32 per head if age was unknown.</p> </abstract>