The Effects of Weather and Output Price Risk on the Economic Returns of Backgrounding Feeding Cattle

Stochastic simulation is used to analyze the effects of weather and output price risks on feeder cattle backgrounding systems common to the mid-south region of the United States. The results show that backgrounding systems beginning in the fall and ending from April to late August are associated with higher expected returns relative to summer backgrounding. However, winter backgrounding is associated with greater overall risk relative to summer backgrounding. Stochastic dominance analysis indicated that slightly risk averse backgrounders prefer both winter and summer baskgrounding but summer backgrounding is preferred by strongly risk averse decision makers.


Issue Date:
1997
Publication Type:
Journal Article
DOI and Other Identifiers:
0738-8950 (Other)
PURL Identifier:
http://purl.umn.edu/90425
Published in:
Journal of Agribusiness, Volume 15, Number 2
Page range:
199-214
Total Pages:
16




 Record created 2017-04-01, last modified 2017-04-04

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