Sell now or later? A decision-making model for feeder cattle selling
Minhao Yan,
Todd Schmit,
Michael J. Baker,
Matthew N. LeRoux and
Miguel Gomez
Agricultural and Resource Economics Review, 2022, vol. 51, issue 2, 343-360
Abstract:
Given the relatively small industry scale of cow-calf operations in New York to other regions of the country, little is known about differences in determinant values for feeder cattle. Using auction prices and quality characteristics over 7 years, differences in market, lot, and quality parameters suggest opportunities for improved marketing performance. A delta profit model is constructed to inform timing of marketing decisions for producers. The results indicate a relatively high potential for producers to increase farm returns by delaying sales of lighter-weight feeder cattle from the fall to spring auction months, given sufficient rates of gain and reasonable overwintering costs.
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:cup:agrerw:v:51:y:2022:i:2:p:343-360_7
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