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PurposeLivestock Risk Protection (LRP) insurance can reduce losses from price declines for cattle producers, but LRP adoptions has been limited. In 2019 and 2020, LRP subsidies were increased to lower the cost, but it is unclear how much these changes lowered the cost. The objective of this research was to estimate the impact of the subsidy increase on the cost of LRP for feeder and fed cattle by month and for various insurance period lengths and levels.Design/methodology/approachThe authors collected United States LRP offering data from 2017 to 2021. The authors estimated separate generalized least squares regression for feeder cattle and fed cattle with producer premium as the dependent variable. Independent variables were dummy variables for coverage level, insurance period, month and year as well as dummy variables in commodity years 2019 and 2020 when the LRP subsidy was increased.FindingsThe authors found the subsidy increases did reduce the cost of LRP policies for feeder and fed cattle LRP policies. Producer premiums for feeder cattle LRP polices have declined between $1.41 to $1.90 per cwt and $0.95 to $1.56 per cwt for fed cattle LRP policies depending on the coverage level. Results indicate these subsidy increases did lower the LRP premium costs to producers.Originality/valueResults show policy implications from the subsidy increases and will be informative to producers when exploring the cost of LRP. This study extends the literature by estimating the reduction in subsidy costs while considering total premiums changed.

This study determines which factors are associated with the use of rotational grazing and the frequency with which Tennessee producers rotate cattle during the summer months. Survey data were used to estimate an ordered response model with sample selection. Most respondents used rotational grazing, and the most frequent rotational schedule was rotating cattle one to two times per month. Factors including labor, capital, knowledge, and water availability influenced the use of rotational grazing and the frequency of rotating cattle. The insights from this study can inform the development of incentives to promote more intensive use of rotational grazing.

PurposeThe objective of this research was to determine the optimal age and pregnancy status for buying and selling replacement of beef females for risk-neutral and risk-averse producers.Design/methodology/approachA hedonic pricing model was estimated to measure how age, pregnancy status, breed and cull cow prices impact the sale price of these cattle. Data came from an annual heifer and cow sale in Tennessee between 2009 and 2018. A financial simulation model was developed to generate distributions of net present value (NPV) for buying replacement females at various ages and pregnancy status and then selling that female at various ages and pregnancy status.FindingsThe hedonic pricing model indicates sale prices were highest for five-year-old cows that were between four to five months pregnant. NPV was higher for buying heifers versus buying cows and for buying an open female versus a pregnant female. Regardless of age and pregnancy status when purchased, NPV was higher when the female was sold as pregnant prior to the end of her productive life. The risk analysis showed that risk aversion, buying older open cows and selling them as pregnant earlier in their productive life was preferredOriginality/valueThis research offers unique insight into how pregnancy status and age at sale impacts the animal's NPV while considering risk. These results have implications for educating producers on purchasing and selling decisions of heifers and cows as well as for lenders who finance these purchases.

We suggest an approach for estimating restaurant willingness to pay (WTP) for local foods. Using a telephone survey of Tennessee restaurants and the contingent valuation method, we estimate restaurant WTP for Tennessee Certified Beef (TCB). Probit regressions were used to determine the factors associated with restaurant decisions to purchase TCB ground beef and sirloin steak. Beef price was negatively associated with restaurant adoption of TCB. Restaurants that were located in a city, located in the eastern region of Tennessee, offered local foods, and had a higher percentage of adults as clientele were more likely to purchase TCB ground beef. A restaurant's decision to offer TCB sirloin steak was positively associated with locations in Middle Tennessee, if the restaurant offered local foods, and if managers placed importance on sustainability. This study contributes to understanding local food supply chains and provides a framework for future studies of restaurant WTP for local foods. [EconLit citation: Q130].

We estimate the values of bull phenotypic traits, performance measurements, and expected progeny differences (EPDs) over time using bull sale data from an auction in Tennessee from 2006 to 2016. Moreover, we determine how a state partial-cost reimbursement program for bulls with certain EPDs affects bull sale price. Purebred seed stock producers in this region should focus on selling large, fast-growing, mature bulls that produce lighter calves for reduced calving stress. The state cost-share payment did not significantly increase bull prices in most years, meaning this payment was retained by cow-calf producers in most years.

Horn flies (Haematobia irritans (L.)) have long posed animal health and welfare concerns. Economic losses to the cattle and dairy industries from their blood-feeding behavior include decreased weight gain, loss in milk productivity, and transmission of bacteria causing mastitis in cattle. Horn fly management strategies are labor intensive and can become ineffective due to the horn fly's ability to develop insecticide resistance. Research indicates that for some cattle herds, genetically similar animals consistently have fewer flies suggesting those animals are horn fly resistant (HFR) and that the trait is heritable; however, it is currently unknown if cattle producers value this trait. Tennessee and Texas cow-calf producers were surveyed to estimate their willingness to pay for HFR bulls and to identify the factors affecting their decision to adopt a HFR bull in their herds. Results indicate that Tennessee and Texas cow-calf producers were willing to pay a premium of 51% and 59% above the base price, respectively, for a HFR bull with the intent to control horn flies within their herd. Producer perceptions of horn fly intensities and the HFR trait, along with their pest management practices, were factors that affected Tennessee and Texas producer willingness to adopt a HFR bull. In Texas, demographics of the producers and their farms also had a role. Knowing producers are willing to pay a premium for the HFR bull indicates that producers value the HFR trait and warrants additional research on the development, implementation, and assessment of the trait.

Price determinants for bulls, cows, and feeder cattle are well established in the literature but there has been little research on bred heifer price determinants and specifically the impact of feeder cattle prices on the purchase price of bred heifers. We estimated the impact of reproductive characteristics and feeder cattle prices on bred heifer prices for beef production. Data were obtained from a May and November bred heifer sale located in Kentucky and hedonic pricing models were estimated for bred heifers for each sale month. Prices for fall- calving heifers were influenced by number of months bred or expected calving date with longer bred heifers priced the highest. Purchase price of spring- calving heifers did not vary from five to seven months bred, but heifers four months bred were priced lower. Pregnancies resulting from artificial insemination did increase the value of fall-calving heifers but did not impact spring-calving heifer prices. Heifer feeder cattle prices the day of the sale positively influenced the price of spring- and fall-calving bred heifers. This extends previous research by considering the impact of feeder cattle prices on the price of bred heifers. The results can help cow-calf producers in making a more informed purchasing decision of replacement breeding animals.

In March of 2017, two outbreaks of avian influenza, one highly- and one low-pathogenic, were reported in Tennessee poultry breeding flocks. This study estimates the potential economic impacts of a larger hypothetical event, in particular, indicating the magnitude of effects for poultry producers, industry organizations, policymakers, and other industry stakeholders. The economic impacts are estimated both with and without reductions in forward-linked processing of broiler breeders and broiler operations with depopulation rates of 10 to 25 percent in a nine-county area in the south-central part of Tennessee. Estimated reductions in gross regional product ranged from $6.7 million to $16.8 million.

We determined the impacts of calving season length on net returns and variability in net returns for spring-and fall-calving herds in Tennessee. Weaning weight as a function of calving date was estimated using a 19-year data set and simulation models generated distributions of net returns for 45-, 60-, and 90-day calving periods with and without using hypothetical improved reproductive management (IRM) practices. Shortening the calving period from 90 days increased expected net returns in the spring-and fall-calving herds. The 45-day fall-calving period with IRM maximized profits, but an extremely risk-averse producer would select a 45-day fall-calving period without IRM.

Although Tennessee has Advanced Master Beef Producer (AMBP) and Beef Quality Assurance (BQA) certifications for cattle producers, currently there is no state-certified beef labeling program. A choice experiment was administered to Tennessee consumers to determine their willingness to pay for Tennessee Certified Beef (TCB) and other attributes such as labels indicating producer participation in AMBP and BQA. Random parameter logit model results indicate consumers most valued TCB steak and no-hormones-administered ground beef. Consumers also valued many labels when appearing alongside the TCB label. The impact of providing participants label definitions prior to the choice experiment was examined.

The effect of animal characteristics and placement decisions on retained ownership profitability of Tennessee cattle from 2005 to 2015 was determined using a mixed model regression. Ex post simulation analysis examined retained ownership profitability by placement season under different animal characteristic and corn price scenarios. Regression results indicate that placement weight, placement season, days on feed, animal health, and animal sex affect retained ownership profitability. Simulation results indicate that winter placement of cattle in feedlots had the highest expected retained ownership profits. Results provide risk-averse producers information regarding the profitability of retained ownership.

Livestock risk protection (LRP) insurance is a price risk management tool available to cattle producers; however, producers have been hesitant to adopt LRP. The objective of the study was to determine the monthly feeder cattle LRP contract coverage level and length maximizing the probability of the LRP net price being greater than the CME Feeder Cattle Index (CME FCI) price. The CME FCI prices were higher than the LRP net price for the majority of the contract lengths and coverage levels. Several coverage lengths and levels provided similar price protection, and there was no consistent preferred coverage length and level.

We determined the profitability and risk for spring- and fall-calving beef cows in Tennessee. Simulation models were developed using 19 years of data and considered the seasonality of cattle prices and feed prices for least-cost feed rations to find a distribution of net returns for spring- and fall-calving seasons for two weaning months. Fall calving was more profitable than the spring calving for all feed rations and weaning months. Fall calving was also risk preferred over spring calving for all levels of risk aversion. Higher calf prices at weaning were the primary factor influencing the risk efficiency of fall calving.

Little is known about the impact of a supplemental prepartum feed ration for cows on the profitability of their calves. Therefore, we investigated the impact of animal characteristics and a supplemental prepartum feed program for cows on net returns to finished steers and the probability of a steer grading Choice or higher. Data were collected for 160 Tennessee steers that were finished in a feedlot. The supplemental prepartum feeding program decreased net returns of finished steers. Several animal characteristics were found to influence net returns of finished steers and the probability of a steer grading Choice or higher.

Heifer rearing is one of the largest production expenses for dairy cattle operations, which is one reason milking operations outsource heifer rearing to custom developers. The cost of harvested feedstuffs is a major expense in heifer rearing. A possible way to lower feed costs is to graze dairy heifers, but little research exists on this topic in the mid-south United States. The objectives of this research were to determine the cost of feeding bred dairy heifers grazing native warm-season grasses (NWSG), with and without legumes, and compare the cost of grazing with the cost of rearing heifers using 3 traditional rations. The 3 rations were corn silage with soybean meal, corn silage with dry distillers grain, and a wet distillers grain-based ration. Bred Holstein heifers between 15- and 20-mo-old continuously grazed switchgrass (SG), SG with red clover (SG+RC), a big bluestem and Indiangrass mixture (BBIG), and BBIG with red clover (BBIG+RC) in Tennessee during the summer months. Total grazing days were calculated for each NWSG to determine the average cost/animal per grazing day. The average daily gain (ADG) was calculated for each NWSG to develop 3 harvested feed rations that would result in the same ADG over the same number of grazing day as each NWSG treatment. The average cost/animal per grazing day was lowest for SG ($0.48/animal/grazing d) and highest for BBIG+RC ($1.10/animal/grazing d). For both BBIG and SG, legumes increased the average cost/animal per grazing day because grazing days did not increase enough to account for the additional cost of the legumes. No difference was observed in ADG for heifers grazing BBIG (0.85 kg/d) and BBIG+RC (0.94 kg/d), and no difference was observed in ADG for heifers grazing SG (0.71 kg/d) and SG+RC (0.70 kg/d). However, the ADG for heifers grazing SG and SG+RC was lower than the ADG for heifers grazing either BBIG or BBIG+RC. The average cost/animal per grazing day was lower for all NWSG treatments than the average cost/animal per day for all comparable feed rations at a low, average, and high yardage fee. Results of this study suggest that SG was the most cost-effective NWSG alternative to harvested feeds for bred dairy heifer rearing.

The objective was to determine the breakeven price for switchgrass (SG) (Panicum virgatum L.), a mix of big bluestem (Andropogon gerardii Vitman) and Indiangrass (BBIG) (Sorghastrum nutans L. Nash), and a combination of SG and BBIG (SG/BBIG) produced under three harvest treatments. Two-harvest treatments included a forage harvest at early boot (EB) and at early seedhead (ESH) plus a biomass harvest at fall dormancy (FD). The third harvest treatment was a single biomass harvest at FD. Mixed models were used to determine if there were differences in yield, crude protein, and nutrient removal for each of the native warm-season grass (NWSG) treatments at each harvest. The EB plus FD harvest system would be preferred over the ESH plus FD harvest system for all NWSG treatments. BBIG was the only NWSG treatment with a breakeven price for biomass that decreased with an EB harvest. For all three NWSG treatments, a producer would be better off harvesting once a year for biomass than twice for forage and biomass. The cost of harvesting and replacing the nutrients for the forage harvest was greater than the revenue received from selling the forage.

Native warm-season grasses (NWSGs) have demonstrated potential to reduce summer forage variability, and furthermore, there has been growing interest in the use of NWSGs as lignocellulosic biomass crops. Th e objective of this research was to determine if there was a diff erence in net returns for full-season summer grazing beef steers (Bos taurus) on three NWSGs. Additionally, the expected price for biomass that a beef producer would need to break even between using the dual-purpose early-season grazing and biomass system and the full-season grazing system was calculated for these three NWSGs. Weaned beef steers grazed switchgrass (Panicum virgatum L.) (SG), a big bluestem (Andropogon gerardi Vitman) and indiangrass [Sorghastrum nutans (L.) Nash] mixture (BBIG), and eastern gamagrass [Tripsacum dactyloides (L.) L.] at Grand Junction (AP) and Highland Rim (HR), TN, from 2010 to 2012. Th e dual-purpose grazing occurred for 30 d beginning in early May, with subsequent growth harvested as biomass post-dormancy, and full-season grazing occurred for 90 d beginning in early May. Budgets were developed for each NWSG to calculate net returns, and mixed models were used to determine diff erences in beef yield and net returns across each NWSG and location. Expected yield and net returns to full-season grazing were not diff erent among NWSGs at AP. However, net returns to full-season grazing were higher for BBIG than SG at HR. A profi t-maximizing, risk-neutral individual would increase net returns by grazing any of the NWSGs over marketing calves at weaning. Th e breakeven biomass prices ranged between US$10 and US$98 Mg–1 depending on the NWSG and location.

Switchgrass and forage sorghum have both been proposed as potential candidates for high yielding, dedicated energy crops. This research was conducted to determine and compare the costs to produce and deliver switchgrass and forage sorghum biomass under the assumptions that the biomass would be baled and transported by truck and that the biorefinery would use either switchgrass or forage sorghum but not both. A multi-region, multi-period, monthly time-step, mixed integer mathematical programming model is used to determine the costs to deliver a flow of biomass to a biorefinery. The model is designed to determine the optimal location of a biorefinery that requires 3630 Mg of biomass per day, the area and quantity of feedstock harvested in each county by land category, the number of harvest machines required, and the costs to produce, harvest, store, and transport a flow of biomass to a biorefinery. The estimated costs of land rent, establishment, maintenance, fertilizer, harvest, storage, and transportation is $60 Mg−1 for switchgrass and $74 Mg−1 for forage sorghum. The cost difference between the two crops is primarily due to harvest costs, which are estimated to be $13 Mg−1 greater for forage sorghum. Forage sorghum has a narrower harvest window, requires more time for field drying prior to safe baling and, as a consequence, requires significantly more harvest machines. Based on the assumptions used in this study for Oklahoma conditions, a switchgrass system with a nine-month harvest window can deliver baled biomass at a lower cost than a forage sorghum system with a five-month harvest window. However, the value of a Mg of switchgrass relative to a Mg of forage sorghum remains to be determined.

Difficult to control winter annual grasses that have been used to produce forage, especially Italian ryegrass (Lolium multiflorum Lam.) and feral rye (Secale cereale L.), have invaded Oklahoma fields traditionally used to produce continuous winter wheat (Triticum aestivum L.). This study was conducted to determine whether a winter canola (Brassica napus L.)–winter wheat crop rotation could compete economically with continuous winter wheat. The effects of seven herbicide treatments for continuous wheat and 24 herbicide treatments for the canola–wheat rotations were analyzed during a rotation cycle at four Oklahoma locations. Enterprise budgets were prepared to enable economic comparisons across production systems and treatments. Wheat yields in the second year of the canola–wheat rotations were significantly (P < 0.05) greater than wheat yields in the second year of continuous wheat across all four locations (10, 11, 15, and 22%). Based on the historical relationship between wheat and canola prices, and a wheat price of US$0.21 kg⁻¹ and a canola price of US$0.40 kg⁻¹, for the three sites for which net returns could be pooled across herbicide treatments, net returns from the canola–wheat rotation (US$197, US$123, and US$24 ha⁻¹ yr⁻¹) were significantly (P < 0.05) greater than net returns from continuous wheat (–US$46, –US$118, and –US$48 ha⁻¹yr⁻¹). Based on historical price relationships and the yields produced in the trials, a winter canola–winter wheat crop rotation may improve net returns relative to continuous winter wheat for Oklahoma fields infested with Italian ryegrass and feral rye.

Before planting millions of hectares to switchgrass (Panicum virgatum L.) monocultures for producing biomass feedstock for biorefineries, it has been proposed that monocultures be tested against polycultures so, among other issues, the economics of both systems can be compared. This research was conducted to determine the lowest cost lignocellulosic biomass feedstock production system from among four monocultures and four polycultures. Randomized complete block designs with four replications were established at two Oklahoma locations. Plots were managed to represent anticipated production activities if perennial species were established in a low input system and harvested once a year to produce biorefinery feedstock. The four monocultures included switchgrass, sand bluestem (Andropogon hallii Hack.), Old World bluestem (OWB) (Bothriochloa ischaemum L. Keng), and big bluestem (A. gerardii Vitman). The four polycultures included mixtures of four grasses, four grasses and four forbs, eight grasses and eight forbs, and OWB with alfalfa (Medicago sativa L.). Plots were harvested once a year for 3 yr. For every treatment that included a mix of species, a dominant species emerged by the third harvest, suggesting that over time these treatments may not differ greatly from monocultures with minor representation of other species. The average yield was 4.6 Mg ha -1 yr -1 for treatments seeded as monocultures at one location compared with 4.0 Mg ha -1 yr -1 for the treatments seeded as polycultures. At the second location, monocultures averaged 7.9 Mg ha -1 yr -1 and polycultures 6.5 Mg ha -1 yr -1 . Economics favored monocultures for the location and environmental conditions that occurred during the time period studied.