Agricultural Economics Department
Date of this Version
Survey work from the University of Nebraska–Lincoln shows that producers can use a combination of price risk management and different lengths in their production system as a hedge against adverse price movements. Putting on weight during the winter and selling in March-April or selling in the late summer are the two common backgrounding production systems in Nebraska. Within these two systems, total weight gain can be influenced by the type of feed given. Table 1 shows group-level trial data for these two types of systems in Nebraska. Gain can either be fast or slow in either the winter stocking 2022-23 and summer grazing 2023 seasons. These decisions impact the total weight gained at each phase and thus the time and weight feeder cattle enter feedlots.