The Economics and Productivity of US Cow-Calf Production

Authors

Richard Nehring, Economic Research Service United States Department of AgricultureFollow
Hannah Shear, Oklahoma State UniversityFollow
Kelvin L. Leibold, Iowa State UniversityFollow
Andrew Swanson, University of California DavisFollow

Abstract

We explore US beef cow-calf production in 2018 and estimate net returns, returns to scale, and technical efficiency associated with backgrounding versus nonbackgrounding by size and production system. We determine the relative profitability of cow-calf operations by type, region, and size. Results, using both stochastic production frontier analysis and data envelopment analysis, indicate that larger operations tend to be more scale and technically efficient than smaller operations. While larger operations may be more scale and technically efficient and have lower variable costs per cow, off-farm income helps smaller operations become competitive. The availability of detailed cost of production information in the 2018 Agricultural Resource Management Survey of cattle and calves survey also facilitates identifying competitiveness by region and size as well as important efficiency drivers.

Recommended Citation

Nehring, Richard; Shear, Hannah; Leibold, Kelvin L.; and Swanson, Andrew (2024) "The Economics and Productivity of US Cow-Calf Production," Journal of Applied Farm Economics: Vol. 7 : Iss. 1, Article 3.
DOI: 10.7771/2331-9151.1078
Available at: https://docs.lib.purdue.edu/jafe/vol7/iss1/3