SIMULATED IMPACT OF A REGIONAL SHIFT IN FED CATTLE PRODUCTION ON THE LOCATION OF FED CATTLE SLAUGHTER

During the past decade fed cattle slaughter has relocated to states situated in the southwest plains. Concern has developed that the economic depletion of groundwater used for irrigating feeding activity could result in reduced levels of cattle feeding in that region. A reduction in cattle feeding activity could result in slaughtering plant closures and a relocation in slaughter activity to other regions. A mixed integer programming model was developed to simulate the possible effect of a declining cattle feeding industry in the southwest plains on the location of the fed cattle slaughtering and processing industry. Solution of the model indicated that the primary readjustment to lower levels of cattle feeding in the southwest plains would be in terms of plant and aggregate area volume, not plant location readjustment.Livestock Production/Industries,

FACTORS AFFECTING THE ADOPTION OF VALUE-ADDED PRODUCTION ON COW-CALF FARMS

Factors that affect the decision to feed or sell calves at weaning are analyzed for Arkansas cow-calf operators. A discrete choice logit model is used to analyze the adoption of value-added cattle production. Farm size, human capital, perception of risk/returns and enterprise diversification are hypothesized to explain this decision. Regional factors and land quality are also accounted for. Operator perceptions towards risk, profitability and facilities were important. Production control and attention to marketing were also significant, but farm size and scale of cattle production had a minimal impact. Effects of human capital and off-farm labor opportunities need further investigation.backgrounding, cow-calf production, production control vs. marketing, risk/return relationship, technology adoption, Livestock Production/Industries,

ADOPTION OF BACKGROUNDING ON COW-CALF FARMS

A discrete choice model is used to analyze the decision to feed or sell calves at weaning. After accounting for regional factors, results show that operator perceptions toward profitability, risk, and facilities as well as control over production and attention to marketing impacted retained ownership of calves. Farm size had a minimal impact.Livestock Production/Industries,

SIMULATED IMPACT OF A REGIONAL SHIFT IN FED CATTLE PRODUCTION ON THE LOCATION OF FED CATTLE SLAUGHTER

During the past decade fed cattle slaughter has relocated to states situated in the southwest plains. Concern has developed that the economic depletion of groundwater used for irrigating feeding activity could result in reduced levels of cattle feeding in that region. A reduction in cattle feeding activity could result in slaughtering plant closures and a relocation in slaughter activity to other regions. A mixed integer programming model was developed to simulate the possible effect of a declining cattle feeding industry in the southwest plains on the location of the fed cattle slaughtering and processing industry. Solution of the model indicated that the primary readjustment to lower levels of cattle feeding in the southwest plains would be in terms of plant and aggregate area volume, not plant location readjustment

FEEDER CATTLE PRICE DIFFERENTIALS IN ARIZONA AUCTION MARKETS

This paper presents the results of an empirical study of price differentials for feeder cattle in Arizona auction markets. Emphasis is placed upon the estimation of price/weight relationships for steers and heifers. Estimation of a short-run feeder cattle price differential model resulted in an equation with a good empirical fit. The model also is in agreement with theoretical expectations. It is concluded that the model presented in the paper could be maintained and updated periodically to provide a useful supplement to market price information services commonly used by cattle producers