Profit Variability for Calf-Fed and Yearling Production Systems

Authors

Rebecca Small, University of Nebraska-Lincoln
Darrell R. Mark, University of Nebraska-LincolnFollow
Dillon Feuz, Panhandle Research and Extension Center, Scottsbluff NEFollow
Terry J. Klopfenstein, University of Nebraska-LincolnFollow
William Griffin, University of Nebraska-Lincoln
Daniel R. Adams, University of Nebraska-Lincoln

Date of this Version

2009

Comments

Published in 2009 Nebraska Beef Cattle Report (Lincoln, NE: December, 2008). Copyright © 2008 The Board of Regents of the University of Nebraska.

Abstract

Profitability of calf-fed and backgrounding yearling systems was determined based on actual production data and prices from 1996 to 2007, and variability across years was compared. The two systems exhibited similar profits, on average, but the calf-fed system showed less profit variability, suggesting there is more risk inherent in a yearling backgrounding and finishing system. Also, profitable years were more apt to have less variable corn prices.