Sell now or later? A decision-making model for feeder cattle selling. (9th August 2022)

• Record Type: Journal Article
• Authors: Yan, Minhao; Schmit, Todd M.; Baker, Michael J.; LeRoux, Matthew N.; Gómez, Miguel I.
• Is Part Of: Agricultural and resource economics review. Volume 51:Number 2(2022)
• Page Start: 343
• Page End: 360
• Publication Date: 2022-08-09
• Subjects: feeder cattle -- hedonic price model -- livestock auction -- marketing; Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/age.2022.1
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract: Given the relatively small industry scale of cow-calf operations in New York to other regions of the country, little is known about differences in determinant values for feeder cattle. Using auction prices and quality characteristics over 7 years, differences in market, lot, and quality parameters suggest opportunities for improved marketing performance. A delta profit model is constructed to inform timing of marketing decisions for producers. The results indicate a relatively high potential for producers to increase farm returns by delaying sales of lighter-weight feeder cattle from the fall to spring auction months, given sufficient rates of gain and reasonable overwintering costs.