Econometric estimations of performance improvements in Kansas feedlot cattle

Abstract

ABSTRACT Technological changes in the cattle industry may have changed feedlot cattle performance. This study extends the analysis of a 2001 report and examines feedlot performance of steers and heifers using monthly Focus on Feedlots newsletter data from January, 1990, to June, 2012. Cattle performance changes were measured through ADG, G:F, BW gain, and total feeding cost models. Tests for structural breaks revealed multiple breaks for ADG, G:F, and BW gain models and a single break in September, 2008, for the feeding costs model. This break occurred 3 yr after the Renewable Fuels Standard implementation, supporting the hypothesis that corn ethanol production significantly affected feedlot costs. Analysis of ADG, G:F, and BW gain models revealed significant, positive annual growth rate in each model. The positive annual growth rate in cattle performance models suggests increasing feeding efficiencies and higher BW gain. This increasing difference between output and input growth (i.e., finish BW − placement BW) suggests that the cattle-feeding industry, in aggregate, has experienced technological change. This conclusion aligns well with literature touting the benefits of cattle feeding technologies (e.g., β-agonists) and with the expansion of beef production amidst a declining national cowherd.