Effects of long-term cattle market conditions on continuous season-long and rotational grazing system revenues
J. L. Windh A D , J. P. Ritten A , J. D. Derner B , S. Paisley C and B. Lee AA Department of Agricultural and Applied Economics, University of Wyoming, 1000 E University Avenue, Laramie Wyoming, 82071, USA.
B USDA Agricultural Research Service, Rangeland Resources and Systems Research Unit, Cheyenne Wyoming, 82009, USA.
C Department of Animal Science, University of Wyoming, 1000 E University Avenue, Laramie Wyoming, 82071, USA.
D Corresponding author. Email: jlwindh@gmail.com
The Rangeland Journal 42(3) 227-231 https://doi.org/10.1071/RJ20067
Submitted: 6 July 2020 Accepted: 29 September 2020 Published: 4 November 2020
Journal Compilation © Australian Rangeland Society 2020 Open Access CC BY-NC-ND
Abstract
In this study we evaluated the combination of long-term market conditions and the price slide in the cattle market on revenues associated with continuous and rotational grazing systems. A price slide is a market phenomenon in which lighter cattle sell at a higher price per unit of liveweight compared with their heavier counterparts. We used actual herd average starting and ending weights in this market analysis, and analysed the outcome using five years’ data from a continuous and rotational comparative grazing study. Despite consistently lower weight gains with rotational grazing, differences in gross revenues per steer between grazing treatments ranged from US$43.46 to minus $5.72 across the study years. We observed annual differences in the net returns across years between the two grazing systems; net returns were greater for steers in the continuous grazing treatment in three of the five years, one year with net returns that did not differ between systems, and one year in which net returns were lower with continuous grazing. These variable results showcase the complexity in having both differences in end of grazing season weight classes between the grazing systems and the differential effects of price slide among weight classes. Therefore, we argue that it may be a better management strategy for land managers to determine the optimal ending weights and the time of year to market livestock to meet the goals of an operation, rather than trying to determine which grazing system is ‘best’.
Keywords: Price Slide, Revenues, Ranch Economics.
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