An Economic Analysis of the Production and Utilization of High-oil Corn on Mixed Crop and Beef Cattle Farms in North Central Missouri

An Economic Analysis of the Production and Utilization of High-oil Corn on Mixed Crop and Beef Cattle Farms in North Central Missouri
Author: Katenda Pashi
Publisher:
Total Pages: 486
Release: 2001
Genre: Hybrid corn
ISBN:

High-Oil Corn (HOC) is a value-enhanced crop has been entering the marketplace in recent years. The increased production and utilization of specialty crops is a trend in agriculture that will likely continue. It brings with it the need for farmers to assess the economics of changing their operations to include these new crops. Despite the proliferation of data available from seed companies, there is relatively little mention of how yields and price premiums will affect the farmer's bottom line. This inquiry seeks to determine the farmer's profitability of integrating the production and the utilization of HOC as a replacement for commodity corn in feed rations for finishing beef cattle. This study concentrates on the criterion of optimization at two levels. The first stage uses BALANCER software to formulate least-cost feed rations for finishing beef cattle. The second stage incorporates feed ration requirements in a model of an illustrative mixed crop and beef cattle farm where HOC is grown in rotation with wheat and soybeans. Various management scenarios of the illustrative farm are optimized with the Purdue Crop and Livestock Linear Programming Model (PC-LP). This analysis reveals that scenarios that include HOC show higher expected profit as a result of better feed conversion of HOC diets, reduced feed costs and of an increased output of slaughter beef cattle. By being carried out on a whole farm setting, this analysis has the merit to offer farmers a better picture about the economics of producing and feeding HOC on their own farms.

The Economic Analysis of Corn Grain Optimization and Price Variation for Cattle on Feed in Texas

The Economic Analysis of Corn Grain Optimization and Price Variation for Cattle on Feed in Texas
Author: Braelyn Moltz
Publisher:
Total Pages: 122
Release: 2019
Genre: Agricultural prices
ISBN:

Cattle placed on feed is a practice to maximize the amount of meat produced before being sent to slaughter, which has become a major agricultural industry. These facilities rely on different feed inputs to build the most cost-effective rations possible to increase the average daily gain of the cattle, which can significantly impact the profit. The three primary sources of profit risk when placing cattle on feed are: fed cattle prices, feeder cattle prices, and corn prices. The optimization of input quantities, especially corn, is crucial to maximize production efficiency and ultimately profit. The objective of this research is to determine the optimal corn grain production rate for cattle on feed in Texas and estimated profit maximization under various price ratios for corn grain and live cattle. Utilizing data from various USDA sources, various different input production levels and prices were collected. SAS, PROC CORR, PROC GLM and PROC REG procedures were used to identify the relationships among variables and stepwise regression models were used to estimate the different production functions, which include the quadratic, cubic, Cobb-Douglas, and square root forms. Sensitivity analysis were performed for the optimal production of corn grain rate, and consequent profit under various combinations of corn and live cattle prices for the four different functions. Additionally, a continuous form curve for optimal corn grain production rates under various price ratios was developed. Results indicated that the cubic model was the most accurate based upon the R2 value. However, the continuous form model created for the sensitivity analysis concluded that the quadratic was the most accurate model under the different price ratios. The results of the study can be a useful tool for the decision making process for producers and policy-makers.

Turning Corn Silage Analysis Into Economic Value for the Beef Industry

Turning Corn Silage Analysis Into Economic Value for the Beef Industry
Author: Brook D. Mitchell
Publisher:
Total Pages:
Release: 2016
Genre:
ISBN:

The corn silage market is typically focused heavily on the dairy market and results for corn silage plots are dedicated to the dairy industry specifically to get to the overall answer of $ Milk/Acre. The beef cattle industry is more interested in pounds of beef that can be gained from corn silage. There are roughly 6.2 million acres of corn silage in the US. Within that 6 million acres, roughly half is fed to beef cattle, but the corn silage industry has not focused on this aspect of the market. Within Mycogen Seeds there has been an ever increasing demand to find a way to deliver the corn silage plot data in a useable format for beef producers. By delivering corn silage plot data to beef producers, Mycogen has aspirations of increasing it's market share of the corn silage market in Kansas as well as across the US, while at the same time increasing the awareness of how quality of a corn silage hybrid can affect a producers operation. This thesis examines corn silage plot info sample analysis and specific feed analysis calculations. With these specific calculations, the corn silage plot will illustrate information in a form that beef producers will understand, $ Beef Produced/Acre. At the same time, this thesis will examine the industry wide concept that tonnage is the only component that is important when selecting a corn silage hybrid. Finally this thesis will examine at what point ($/bushel) in the corn grain market does it make sense to start looking at utilizing corn silage over dry rolled corn by comparing price per MegaCalorie of energy by utilizing 25 year historical corn grain prices and using the Purdue Method of determining the cost of corn silage on a per ton basis.