Projects Funded for Tina Saitone

2016-2017

Benefits and Costs Associated with Nonlethal Depredation Efforts for Sheep and Lamb Operations in California

2015-2016

Western Calf and Yearling Prices: Spatial, Quality, and Temporal Factors

Abstract

Specific Objectives of the Project
We seek to investigate spatial, quality, and temporal factors impacting the prices of calves and yearlings in California and other Western states, using data from satellite video auctions and a hedonic regression framework. The topic is important because cattle ranchers in the West are increasingly concerned about the long-term viability of their businesses because of perceived price disadvantages relative to ranchers located in the Midwest. Our framework will also enable valuations to be estimated for specific production practices that will be an important input to rancher decision making.

Project Report/Summary of Results
This study investigates spatial, quality, and temporal factors impacting the pricing of calves and yearlings in the Western United States using data from a satellite video auction and a hedonic regression framework. Results suggest that spatial price discounts received by Western ranchers, due to the paucity of processing capacity in the West, closely match reported shipping costs and, thus, are consistent with FOB pricing and competitive procurement. Also, this study is the first to identify the presence of temporal price premiums on average for seller-offered forward contracts at video auctions. With respect to quality attributes, this study provides the most up-to-date estimates of the marginal value associated with various quality attributes and management practices, while also finding some support for the benefits of third-party quality certification. Finally, we show that the considerable year-to-year variability in estimated valuations for value-added attributes in hedonic regression models of cattle pricing can be linked to the stage of the cattle cycle as measured by the cattle inventory.

2007-2008

The Implications of Marketing-Order Quality Regulations in a Free-Market Environment