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1 results

  • Describing Variation in Formula Base Prices for U.S.-Fed Cattle: A Hedonic Approach

  • Sheppard G. Rogers, Ted C. Schroeder, Glynn T. Tonsor, Brian K. Coffey
  • Journal:
    Journal of Agricultural and Applied Economics / Volume 55 / Issue 1 / February 2023
    Published online by Cambridge University Press:
    14 April 2023, pp. 117-132
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  • The United States Department of Agriculture Agricultural Marketing Service (USDA AMS) began publishing formula base price information in August 2021. Considerable variation in the types of cattle priced via formula has raised questions about the level of base price transparency that can be gleaned from formula base price reports. This study employs 6 years of transactions to estimate hedonic models assessing the capability of existing data to describe variation in formula base prices. Results suggest factors beyond those reported to USDA AMS by packers influence base prices. We offer suggestions for improved data collection to make hedonic modeling of base prices more effective for reporting market information.