THE BEEF COW REPLACEMENT DECISION

Mathews, Kenneth H., and Sara D. Short

Journal of Agribusiness, 2001, vol. 19, issue 2

Abstract: This analysis examines effects of several common assumptions on net present values (NPVs) of beef cows. While effects on NPVs vary over a price cycle or successive price cycles, several generalities manifest themselves. A cow is not likely to recover the lost revenue from not having just one calf. Incorporating genetic improvement into the herd increases the probability of an older cow being culled. Variable net replacement/culling rates make sense in the context of cattle inventory and price cycles because of the effects cyclical series of prices have on NPV.

Keywords: asset replacement; cattle cycle; cull; net present value; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2001
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