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.

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,

ASSESSING THE COST OF BEEF QUALITY

The number of U.S. fed cattle marketed through a value based or grid marketing system is increasing dramatically. Most grids reward Choice or better quality grades and some pay premiums for red meat yield. The Choice-Select (C-S) price spread increased 55 percent, over $3/cwt between 1989-91 and 1999-01. However, there is a cost associated with pursuing these carcass premiums. This paper examines these tradeoffs both in the feedlot and in a retained ownership scenario. Correlations between carcass and performance traits resulted in economic tradeoffs that change across input costs and quality grade premiums and discounts. Feedlot profitability was largely determined by marbling, carcass weight, and feed efficiency. Carcass weight was most important at a low C-S spread. However, at average C-S spread and higher, marbling became the largest determinate of feedlot profits, and its importance increased with the C-S spread. Carcass weight and feed efficiency influence on feedlot profitability declined at higher C-S spreads. Rib-eye area was the fourth most important variable and declined in importance as marbling increased in importance. There is some indication that cows with lower feed costs also produce the most profitable calf for the feedlot, and vice-versa. The data suggests that cow size and marbling score are negatively correlated. The current trend toward wider C-S spreads and rewarding higher quality grading cattle places greater emphasis on marbling ability of calves. These correlations and results suggest that higher marbling is associated with lower cost cows to maintain.Livestock Production/Industries, Marketing,

Dynamics of international aid in the Chinese context: a case study of the World Bank's Cixi Wetlands Project in Zhejiang Province

Environmental degradation in China, intensified by open-door reforms and industrialization, has been increasing at an alarming scale. Domestically, environmental governance has been poor, often due to institutional constraints and lack of “good practices.” However, recently there have been studies on how the “foreign factor” might have profound positive effects on capacity building in China and how international actors could lead to the successful introduction of good environmental governance. In this article, we present a study of a successful case: the World Bank Global Environmental Facility Cixi Wetlands project in Ningbo, China. The article examines the following: (a) the unique local context enabling the diffusion of international norms; (b) the factors which contribute to the World Bank's leverage role in restructuring local project governance; and (c) the changes in local environmental governance arising from the Bank's involvement. By evaluating this project, the article will demonstrate how the World Bank managed to introduce and socialize local actors into project-specific policy dialogues and procedures that enhanced local compliance with its international practices and standards

INFLUENCE OF LAND TENURE ARRANGEMENTS ON GRAZING MANAGEMENT INCENTIVES

Land Economics/Use, Livestock Production/Industries,

OPTIMAL FEED COST STRATEGIES ASSOCIATED WITH EARLY AND LATE CALVING SEASONS

Integer programming models were used to examine optimal monthly feeding strategies and costs for March and May calving alternatives. Body condition scores were allowed to fluctuate throughout the year except for calving and breeding periods. The May calving strategy decreased annual feeding costs by $20 per cow.Livestock Production/Industries, Research Methods/ Statistical Methods,