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Profitability Of Feeding Cull Cows, Richard Shane, Wayne Ellington

South Dakota Beef Report, 1986

The seasonal price pattern exhibited in the South Dakota cull cow market is one of low prices in the fall when most culling is done with increasing prices well into the following year. This pattern supports the assertion that cattle producers may improve profitability of their operations by feeding cull cows for several months rather than selling immediately at culling time. A dynamic programming model was used to determine the optimal strategy for marketing cull cows in South Dakota. The model systematically evaluated the sell now versus the hold and maintain or feed for gain strategies of the producer. Results …