Determinants of Profit Variability in Calf-Fed and Yearling Production Systems

Authors

Rebecca M. Small, University of Nebraska-LincolnFollow
Darrell R. Mark, University of Nebraska-LincolnFollow
Terry J. Klopfenstein Klopfenstein, University of Nebraska-LincolnFollow

Date of this Version

2010

Comments

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

Abstract

Factors that were determinants of profit variability in calf-fed and yearling beef production systems were identified and ranked. The analysis indicated cattle prices have the greatest influence on profit variation for both systems and on all backgrounding and finishing phases of the yearling system. Prices of feedstuffs (i.e., corn prices, wet corn gluten feed prices, and pasture and cornstalk rental rates) were the next most important factors explaining profit risk. Cattle performance variables and interest rates had the smallest impact on profit variation.