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The Dynamics of Feeder Cattle Market Responses to Corn Price Change

Published online by Cambridge University Press:  28 April 2015

John D. Anderson  and
James N. Trapp
John D. Anderson
Affiliation:
Department of Agricultural Economics, University of Kentucky
James N. Trapp
Affiliation:
Department of Agricultural Economics, Oklahoma State University
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Abstract

A feeder-calf price model is estimated which incorporates elements of break-even budget analysis, including estimates of placement weights, slaughter weights, ration cost, and feed-conversion rates. From this model, a corn price multiplier is calculated which quantifies the corn/feeder-calf price relationship. Because the multiplier includes information on cattle weight, feed conversion, and ration cost, it also provides insight into how feeding programs are altered in response to corn price changes. Changes in feeding programs which occur in response to corn price changes are illustrated with dynamic simulation based on weight, ration cost, and price models presented here.

Keywords

corncorn price multiplierdynamic simulationfeeder cattle
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 3 , December 2000 , pp. 493 - 505
Copyright
Copyright © Southern Agricultural Economics Association 2000

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