STOCKER CATTLE OWNERSHIP VS. CONTRACT GRAZING: A COMPARISON OF RISK-ADJUSTED RETURNS

Abstract

Stocker cattle ownership is compared to contract grazing using stochastic simulation. Returns are evaluated for both cattle owners and caretakers in contract grazing agreements. For caretakers, contract grazing is significantly less risky than cattle ownership. For cattle owners, contracting reduces risk only slightly while significantly reducing expected returns.Livestock Production/Industries,