2024
Tronstad, Russell; Feuz, Dillon
The theme for this Fall 2024 issue of the Western Economics Forum (WEF) is “Emerging Cattle and Beef Market Trends.” Cow-calf producers and stockers utilize more agricultural land in the West for grazing and forage production than any other commodity sector. Feeders are also a very heterogeneous commodity with range environments, genetics, and management practices differing by regions and even some areas of a given county. Articles in this special issue address a broad spectrum of topics that range from trends in the basis of feeder calves to virtual fence technology that can remotely control areas where cattle graze with Global Positioning System implemented lines and collars.
Peel, Derrell S. ; McGill, Ethan; Raper, Kellie Curry; DeVuyst, Eric A.
Data from feeder cattle auctions across multiple states were analyzed in a hedonic regression to estimate the value of factors affecting the auction price of sale lots. The data set included over 275,000 head of cattle in more than 18,000 sale lots from 92 sales in 21 locations across seven states. Results quantify the value of sale factors, management factors, animal characteristics, and location on the auction price of feeder cattle.
Berg, Nikolas L.; Thayer, Anastasia W. ; Fischer, Matthew; Feuz, Dillon
Since 2012, Western cattle herds have undergone cycles of contraction and expansion, influenced by severe droughts, a global pandemic, and regional variations in cattle quality, all of which have contributed to diverse local market conditions. We examine feeder steer and heifer basis from 2012-2023 in nine Western states to identify market trends and patterns. We find that some historic patterns persist, but also new patterns based on season, region, weight class, and gender exist, which could be used to improve ranch-level decision-making and marketing.
Baxter, Grace A.; Raper, Kellie Curry; Peel, Derrell S.; DeVuyst, Eric A.
Feedlot profitability of Wagyu-influenced cattle is examined using data from a privately owned feedlot in the Midwest. The data contain more than 15,000 head of cattle, including full blood Angus and Wagyu-Angus crossbred cattle of 12.5%, 25% and 50% Wagyu heritage. Results indicate that steers with 25% Wagyu had higher net real returns at the mean than all other genetic combinations in the study. Heifer results are more mixed. Mean net returns for 12.5% Wagyu heifers were statistically different from full blood Angus heifers, but other pairwise comparisons were not. Cattle with 25% Wagyu exhibited the most consistent mean net returns across feedlot start weights. Angus cattle had consistently lower net returns across feedlot start weights than Wagyu-influenced cattle. This increased profitability is arguably due in part to increasing the proportion of cattle that grade USDA Prime via Wagyu genetics while also lessening Wagyu’s potentially negative physical performance impacts with Angus genetics.
DeLay, Nathan D.; Mooney, Daniel F.; Ritten, John P.; Hoag, Dana L.
Western ranches face many challenges, including drought, labor shortages, wildlife conflicts, and reducing the environmental impact of beef production. Virtual fencing (VF) is a potential tool for addressing these issues. VF allows producers to move herds using virtual boundaries almost instantaneously using Global Positioning System collars, providing flexibility to manage where and when cattle graze. Whereas previous VF studies address on-farm economic considerations, few consider potential broader economic and policy implications. We examine how widespread adoption may affect the Western cattle industry, including labor markets, public lands, ecosystem services, and wildlife conflict. The investigation will help policymakers and extension professionals consider this technology’s ‘big picture’ outcomes.
Nading Jr., Micheal; Etienne, Xiaoli; Trujillo-Barrera, Andres; Hatzenbuehler, Patrick; Wilder, Brett
Two focus groups were conducted in Idaho to explore wheat producers’ marketing preferences and factors affecting their decision-making. Participating producers have used a variety of tools, including cash sales, forward contracts, futures and options contracts, and the store-and-sell-later strategy. Beyond financial and operational considerations, participants emphasized the influence of social, behavioral, and external factors on their marketing decisions. This is likely due to the region’s heavy reliance on export markets and the recent unprecedented volatility caused by geopolitical events. The findings highlight the need for extension programs to improve information sharing, marketing education, and stress management, which will help enhance producers’ ability to navigate market volatility.