EXTENSION'S RESPONSE TO UNDERSTANDING EVOLVING LIVESTOCK MARKET SIGNALS: IOWA'S EXPERIENCE

Livestock Production/Industries, Teaching/Communication/Extension/Profession,

Science, Politics, and Values: The Politicization of Professional Practice Guidelines

The Connecticut Attorney General’s recent allegations that the Infectious Disease Society of America violated antitrust law through its treatment guidelines for Lyme disease were neither based in sound science or appropriate legal judgment. Strong scientific evidence favors IDSA’s position that chronic infection with the etiologic agent of Lyme disease does not occur in the absence of objective signs of ongoing infection and that long-term antibiotic use to treat dubious infection, recommended in the quasi-scientific guidelines put forth by the International Lyme and Associated Diseases Society (ILADS), are of no benefit. In siding with ILADS and other chronic Lyme disease advocates, ultimately forcing IDSA to settle lest it expend exorbitant legal costs, the attorney general abused science and his public trust. This case exemplifies the politicization of health policy and confuses the relative spheres inhabited by normative discourse and scientific inquiry. Science should provide the evidentiary base for normative discussions, and values and politics will always be important in deciding how science is applied for human benefit. But a wall of separation is needed between science, values, and politics, as medical science, and the patients who depend on it, is too important for political distortion

CHANGES IN LIVESTOCK MARKETING AND PACKING INDUSTRIES: UNITED STATES, UPPER NORTH CENTRAL REGION, AND MINNESOTA

Livestock Production/Industries,

Livestock Enterprise Budgets for Iowa--2002

This publication contains estimates of production costs for common livestock enterprises in Iowa. Estimates are intended to refl ect average or above-average levels of management using common types of technology. Input prices reflect expected average price levels during the year.

The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions

After controlling a variety of feeder cattle characteristics and market and sale conditions, we estimate the price premiums for preconditioning (vaccinations and minimum 30 days weaning) claims with and without third-party certification (TPC) as $6.15/cwt and$3.40/cwt, respectively, in Iowa feeder cattle auctions. These premiums differ statistically (p-value less than 0.0001) and their difference exceeds the additional participation cost of TPC ($1/cwt) on average. This indicates that the third party certification is valued in the market to credibly signal preconditioning investment under asymmetric information.

Information Transmission in Cattle Markets: A Case Study of the Chariton Valley Beef Alliance

The declining share of beef in total U.S. meat consumption has motivated industry-wide efforts to improve average beef quality through more effective coordination among the various market participants. Increased use of explicit grid pricing mechanisms over the last decade represents initial efforts at improved coordination. More recent efforts include animal-specific carcass data collection, with subsequent transmission to feeders and the relevant cow/calf operations, and improved source verification procedures aimed at (among other things) reducing the overall cost of medical treatment for live animals. None of these organizational innovations is costless, and indeed a number of significant barriers must be overcome before more widespread adoption of such practices takes place. This paper takes a detailed look at one organization’s attempts to overcome some of these barriers, and provides a qualitative assessment of this and other potential organizational responses.cattle and beef markets, information transmission, producer alliance, Livestock Production/Industries, Marketing,

RISK MANAGEMENT FOR LIVESTOCK PRODUCERS: HEDGING AND CONTRACT PRODUCTION

Livestock Production/Industries, Risk and Uncertainty,

FACTORS THAT INFLUENCE PRICES PRODUCERS RECEIVE FOR HOGS: STATISTICAL ANALYSIS OF KILLSHEET AND SURVEY DATA

This paper evaluates the results of a survey of Iowa pork producers, examining potential price discrimination by packers. Prices varied greatly across producers, and the examined variables explain just over half of the variation. Factors under the producer's control were the most significant variables and accounted for the vast majority of the explainable difference in price among producers. Packer buying systems also accounted for some difference in producer prices. Finally, variables related to operation size, while statistically significant, increased the explanatory values of the equation very little. KEYWORDS: Market access, carcass merit, hog marketing, price determination, price discrimination

A DECISION MODEL TO ASSESS CATTLE FEEDING PRICE RISK

Traditional break-even/fed cattle price projections do not provide adequate risk information to feeders, investors, lenders, and other stakeholders interested in cattle feeding decisions. The objectives of this study were two-fold: 1) develop a spreadsheet model that could estimate the net income distribution surrounding a cattle placement decision based on historical errors of futures based price forecasts, and 2) determine whether information generated from the model can be used to improve placement and marketing decisions. To accomplish objective 1, model was developed that could estimate the income distribution around a pen of cattle under a cash speculating and short hedge pricing strategy. Distribution estimates were based on 7 alternative forecast horizons and were derived from historical forecast errors. To accomplish objective 2, decision rules were developed that allow the feeder to specify the maximum probability he/she is willing to risk losing a specified level of income. These decision rules were compared to random and naive decision rules by simulating the outcomes over 168 discrete six months feeding periods between 1987 and 2000. Risk averse decision rules were successful in signaling highly unprofitable feeding periods, but also filtered out highly profitable feeding periods.Livestock Production/Industries, Marketing,

Value of Single Source and Backgrounded Cattle as Measured by Health and Feedlot Profitability

Commingling cattle in the feedlot increases the odds of cattle getting sick. However, backgrounded cattle are less susceptible to diseases which allow the generalizing statements like "backgrounding is just like single source". Using data from over 15,000 cattle fed in 12 Iowa feedlots, we show that although backgrounded cattle do better than preconditioned cattle commingled in the feedlot, they have poorer carcass quality, health, and performance than single source cattle. Backgrounded cattle should be discounted $8.24/head relative to single source, and only received a small premium over multi-source preconditioned cattle though not significantly different.Livestock Production/Industries,