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Market Valuation of Preconditioning Feeder Calves

Author

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  • Avent, R. Keith
  • Ward, Clement E.
  • Lalman, David L.
Abstract
Preconditioning calf programs, while not new, are becoming more prevalent. They provide benefits to cow-calf producers while adding value for feeder cattle buyers. However, questions remain regarding the economic costs and returns of such programs. A model was estimated with data from three consecutive-day sales, to determine the value that buyers place on preconditioning programs and related feeder cattle traits. Our results indicate that price premiums, although evident, appear to be insufficient by themselves to cover the marginal costs of preconditioning.

Suggested Citation

  • Avent, R. Keith & Ward, Clement E. & Lalman, David L., 2004. "Market Valuation of Preconditioning Feeder Calves," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(1), pages 173-183, April.
    • Handle: RePEc:cup:jagaec:v:36:y:2004:i:01:p:173-183_02
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    Citations

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    Cited by:

    1. Vestal, Mallory K. & Ward, Clement E. & Doye, Damona G. & Lalman, David L., 2006. "Beef Cattle Production and Management Practices and Implications for Educators," 2006 Annual meeting, July 23-26, Long Beach, CA 21426, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Schulz, Lee L. & Dhuyvetter, Kevin C. & Doran, Beth, 2014. "Factors Affecting Preconditioned Calf Price Differentials: How much do Market and Sale Conditions Matter?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170570, Agricultural and Applied Economics Association.
    3. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "Reducing Self-Selection Bias in Feeder Cattle Premium Estimates Using Matched Sampling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-15, April.
    4. repec:ags:jrapmc:122309 is not listed on IDEAS
    5. Doye, Damona & Popp, Michael & West, Chuck, 2008. "Controlled versus Continuous Calving Seasons in the South: What’s at Stake?," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2008, pages 1-14.
    6. Calil, Yuri Clements Daglia & Ribera, Luis A. & Anderson, David P. & Koury Filho, William, 2022. "Pure-bred Nellore Prices in Brazil: Morphological, Genetic, Physical, and Market Factors in Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    7. Williams, Galen S. & Raper, Kellie Curry & DeVuyst, Eric A. & Peel, Derrell S. & McKinney, Doug, 2012. "Determinants of Price Differentials in Oklahoma Value-Added Feeder Cattle Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-14, April.
    8. Mitchell, James & Peel, Derrell S., 2016. "Price Determinants of Bred Cows in Oklahoma Auctions," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230077, Southern Agricultural Economics Association.
    9. Fantu Bachewe & Derek Headey & Bart Minten, 2023. "Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 289-306, March.
    10. Andreas Tsakiridis & Michael Wallace & James Breen & Cathal O'Donoghue & Kevin Hanrahan, 2021. "Beef quality assurance schemes: Can they improve farm economic performance?," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 451-471, July.
    11. Schumacher, Stephanie & Peel, Derrell S. & Raper, Kellie Curry, 2013. "Non-Adoption of Best Management Practices: Demographics and Adoption Constraints of Oklahoma Cattle Producers," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143094, Southern Agricultural Economics Association.
    12. Bulut, Harun & Lawrence, John D., 2007. "The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(3), pages 625-640, December.
    13. Williams, Brian R. & Raper, Kellie Curry & DeVuyst, Eric A. & Peel, Derrell S. & Lalman, David L. & Richards, Chris & Doye, Damona G., 2012. "Demographic Factors Affecting the Adoption of Multiple Value-Added Practices by Oklahoma Cow-Calf Producers," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119743, Southern Agricultural Economics Association.
    14. Johnson, Myriah, 2008. "The Profitability of Preconditioning Calves in Oklahoma Over 10 Years," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2008, pages 1-13.
    15. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2014. "Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162323, Southern Agricultural Economics Association.

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