The feasibility of retained ownership strategies for cow-calf producers

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Show simple item record Albright, Kay 2011-05-05T13:57:04Z 2011-05-05T13:57:04Z 2011-05-05
dc.description.abstract Retained ownership can generally be described as when a producer does not sell his or her calf crop immediately after weaning but keeps the calves for an extended period of time. This is a decision that is made by the cow-calf producer every year and may or may not change from year to year. For some, the decision is based on past practices while others will evaluate the market before making a decision. There are various levels of retained ownership that can be modified to fit a producer’s operation and can range from a preconditioning program to finishing the cattle in the feedlot. This study specified various retained ownership scenarios in order to be able to analyze the situations. Budgets were used to analyze the optimum phase of production at which to sell calves that is most profitable while taking risk into consideration. Specifically, budgets were developed for scenarios of four cow-calf herds, four backgrounding phases, two grazing phases, and six custom feedlot phases. These budgets were used to produce sixteen potential retained ownership scenarios. The scenarios range from selling the calves immediately after weaning to owning the cattle through finishing at the feedlot. Each scenario was then analyzed based on the net returns over a 10-year period. Additionally, the scenarios were analyzed based on net returns over feed costs. Target MOTAD was used to analyze the risk component of the scenarios. Although most of the net returns were negative for all scenarios, retained ownership showed a trend of improving net returns. However, along with the improved returns came a greater variability in returns which is unattractive to a risk adverse producer. Target MOTAD results on a net return basis selected the cow-calf only phase of production in all scenarios. en_US
dc.language.iso en_US en_US
dc.publisher Kansas State University en
dc.subject Retained ownership en_US
dc.title The feasibility of retained ownership strategies for cow-calf producers en_US
dc.type Thesis en_US Master of Science en_US
dc.description.level Masters en_US
dc.description.department Department of Agricultural Economics en_US
dc.description.advisor Michael R. Langemeier en_US
dc.subject.umi Economics, Agricultural (0503) en_US 2011 en_US May en_US

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