Factors affecting variability in feedlot steer profits

Authors

Michael R. Langemeier
J. Mintert
Ted C. Schroeder

Keywords

Cattlemen's Day, 1992; Kansas Agricultural Experiment Station contribution; no. 92-407-S; Report of progress (Kansas State University. Agricultural Experiment Station and Cooperative Extension Service); 651; Beef; Cattle finishing profitability; Sale prices; Feeder cattle prices

Abstract

This study examined the relative importance of price and animal performance factors on cattle finishing profitability. Using data from a single feedlot, sale prices, feeder prices, and corn prices explained 90 to 95% of the variation in steer profits. About 50% of the variability was explained by fed cattle prices alone. Because sale, feeder, and corn prices have a large impact on profits per head, cattle feeders should attempt to manage the risks associated with these three factors.

Recommended Citation

Langemeier, Michael R.; Mintert, J.; and Schroeder, Ted C. (1992) "Factors affecting variability in feedlot steer profits," Kansas Agricultural Experiment Station Research Reports: Vol. 0: Iss. 1. https://doi.org/10.4148/2378-5977.2161