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Cow-Calf Producer Risk Preference Impacts on Retained OwnershipStrategies

Published online by Cambridge University Press:  26 January 2015

Kelsey Frasier Pope ,
Ted C. Schroeder ,
Michael R. Langemeier  and
Kevin L. Herbel
Kelsey Frasier Pope
Affiliation:
Nebraska Corn Board, Lincoln, Nebraska (former graduate research assistant, Kansas State University)
Ted C. Schroeder
Affiliation:
Kansas State University, Manhattan, KansasKansas Farm Management Association Administrator, Kansas State University, Manhattan, Kansas
Michael R. Langemeier
Affiliation:
Kansas State University, Manhattan, KansasKansas Farm Management Association Administrator, Kansas State University, Manhattan, Kansas
Kevin L. Herbel
Affiliation:
Kansas State University, Manhattan, KansasKansas Farm Management Association Administrator, Kansas State University, Manhattan, Kansas
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Abstract

Considerable efforts have been made to provide cow-calf producers withinformation to help them make informed decisions about adding value tocalves. Despite demonstrated market incentives to retain calves, manyproducers still sell right after weaning. We postulate this observedbehavior is related to producer risk aversion. Our study concludes riskaversion is an important factor affecting calf retention as the mostrisk-averse producers have more than a 60% probability of selling calves atweaning and the most risk tolerant have less than a 20% probability ofselling at weaning.

Keywords

cow-calf producersordered probitretained ownershiprisk aversionQ13C25D18
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 43 , Issue 4 , November 2011 , pp. 497 - 513
Copyright
Copyright © Southern Agricultural Economics Association 2011

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