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Price Signals as Indicators of Profitability at Various Stages of Production in Oklahoma Beef AgEcon
Williams, Brian R.; DeVuyst, Eric A..
Cow-calf producers face an annual decision on when to sell their calves. They can sell them at any point between weaning and slaughter, with the objective of finding the profit maximizing selling point. This paper investigates the use of price signals to determine profit maximizing selling points/retention strategies. Three retention strategies, one for fall calving and two for spring calving, are considered. Producers can sell their calves at weaning, after preconditioning, after grass pasture, after wheat pasture, or after the feedlot depending on the retention strategy. These price signals indicate the optimal selling point based on an observable price ratio at weaning. This paper also considers factors such as the level of preconditioning premiums and...
Tipo: Conference Paper or Presentation Palavras-chave: Beef; Producer Profitability; Price Signals; Farm Management; Livestock Production/Industries; Production Economics; Q13; Q10.
Ano: 2011 URL: http://purl.umn.edu/98769
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Utilizing cow-calf producer information to increase profits in retained ownership of beef cattle AgEcon
Williams, Brian R.; Stockton, Matthew C..
Retained ownership has been found to be a profitable endeavor, yet many cow-calf producers choose not to retain their calves. While this paper does not directly explore the reasons producers might have for not retaining ownership, which may include uncertainty, it does explore innovative use of asymmetrical information that might reduce some of the uncertainty. Results are summarized in a regression analysis similar to a Hedonic price model where birth weight, weaning weight, and weaning age are found to be important factors to consider when selecting animals to retain.
Tipo: Conference Paper or Presentation Palavras-chave: Asymmetrical Information; Hedonic Price Model; Beef; Retained Ownership; Producer Profitability; Farm Management; Livestock Production/Industries; Production Economics; D82; M31; Q13.
Ano: 2011 URL: http://purl.umn.edu/98773
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