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A U.S. Regional Model of Feeder Steer-Heifer Price Differentials

Published online by Cambridge University Press:  28 April 2015

Steven T. Buccola  and
David L. Jessee
Steven T. Buccola
Affiliation:
Virginia Polytechnic Institute and State University, Blacksburg
David L. Jessee
Affiliation:
Agricultural Chemicals Group, W. R. Grace and Co., Wilmington, North Carolina
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Extract

U.S. feeder cattle markets discriminate among a wide variety of animal characteristics such as weight, sex, breed, grade, and age. In recent years, concern has been expressed that price premiums paid for steers over heifers no longer reflect estimated differences in their feedlot performance or carcass value [2,8]. Another question is whether observed regional differences in steer-heifer price differentials are justified. The sources of feeder price differentials by sex are investigated and variations in these differentials across time and space dimensions are analyzed. The results provide preliminary evidence on the efficiency with which feeder markets establish price spreads.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 11 , Issue 1 , July 1979 , pp. 61 - 65
Copyright
Copyright © Southern Agricultural Economics Association 1979

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References

[1] Buccola, S.T. “Weight, Sex, and Feeder Cattle Price Differentials: A Theoretical and Empirical Analysis,” presented at the American Agricultural Economics Association Annual Meetings, August 1978.Google Scholar
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