Price Determinants for Feeder Cattle in Tennessee

Charles C. Martinez, Christopher N. Boyer and Kenneth Burdine

Journal of Agricultural and Applied Economics, 2021, vol. 53, issue 4, 552-562

Abstract: A hedonic model was employed to examine factors impacting feeder cattle prices at a monthly video auction in Tennessee. Home-raised cattle were estimated to have a $2 per cwt. premium and cattle that have been tested for PI-BVDV (persistent infections with bovine viral diarrhea virus) sold for a premium of $1.19 per cwt. We also show how price varies across sale months for steers and heifers, suggesting opportune times to market gender-specific lots. Corn price was interacted with an average weight per head of the lot to show that lighter cattle were negatively affected, while heavier cattle prices were positively affected by increasing corn prices.

Date: 2021
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