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Determinants of Cattle Finishing Profitability

Published online by Cambridge University Press:  28 April 2015

Michael Langemeier ,
Ted Schroeder  and
James Mintert
Michael Langemeier
Affiliation:
Department of Agricultural Economics, Kansas State University
Ted Schroeder
Affiliation:
Department of Agricultural Economics, Kansas State University
James Mintert
Affiliation:
Department of Agricultural Economics, Kansas State University
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Abstract

Data from a western Kansas feedlot were analyzed to estimate the quantitative impacts of price and performance variables on profits per head from finishing cattle. Sale prices, feeder prices, and corn prices had the most impact on profit variability over time. Differences in sale prices, feeder prices, and feed conversions were important in explaining the difference in steer and heifer profits over time. Results suggest that breakeven prices should be calculated for a range of fed cattle, feeder, and corn prices, and that these three variables need to be stochastic in representative farm modeling efforts.

Keywords

cattle finishing profitabilityfeedlot closeoutscattle performance
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 24 , Issue 2 , December 1992 , pp. 41 - 47
Copyright
Copyright © Southern Agricultural Economics Association 1992

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