Nebraska cow-calf operations use of pricing tools and market diversification strategies to manage market risk

Authors

Logan Kalkowski, University of Nebraska-LincolnFollow

First Advisor

Jay Parsons

Second Advisor

Elliot Dennis

Date of this Version

Spring 5-2021

Citation

Kalkowski, L., J. Parsons, and E. Dennis. 2021. "Nebraska cow-calf operations use of pricing tools and market diversification strategies to manage market risk." University of Nebraska-Lincoln.

Comments

A THESIS Presented to the Faculty of The Graduate College at the University of Nebraska In Partial Fulfillment of requirements For the Degree of Master of Science, Major: Agricultural Economics, Under the supervision of Professor Jay Parsons and Professor Elliott Dennis. Lincoln, Nebraska: May 2021

Copyright © 2021 Logan A. Kalkowski

Abstract

This thesis is the work of Logan Kalkowski with assistance and direction from the University of Nebraska-Lincoln and advisors Jay Parsons and Elliott Dennis. This thesis is divided into three chapters. The first chapter of this thesis investigates years of research and data collection from multiple agencies to find connections to reasoning for producers to choose marketing and diversification tools used in their operation.

The second chapter examines cow-calf marketing and risk management practices in Nebraska. Marketing and risk management behavior are examined by using the University of Nebraska-Lincoln Cow-calf survey data collected in 2016. The survey captures characteristics of operations and their use of marketing and risk management practices. While it is important to understand what operations are doing currently, it is also important to understand what options are available to these producers in the marketplace. This chapter explains the marketing and risk management options available to cattle producers.

The third chapter of this thesis examines the relationship between producer characteristics and use of market strategies. This is examined because of the importance of market timing and location when making decisions to retain or sell livestock. This chapter uses a multinomial logit model to examine four modes of action discussed in chapter two. The four modes of action are grouped by how individuals responded to specific marketing questions and are examined to see if there are similarities in the operations connected to each mode.

Advisors: Jay Parsons, Elliott Dennis