Economics of Transitioning from a Cow-Calf-Yearling Operation to a Stocker Operation

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dc.creatorRuff, Shane P.
dc.creatorPeck, Dannele E.
dc.creatorBastian, Christopher T.
dc.creatorCook, Walter E.
dc.date2017-04-01T14:04:02Z
dc.date.accessioned2026-07-09T10:36:43Z
dc.descriptionOne alternative to a cow-calf-yearling operation is a stocker operation. Relative profitability of cow-calf-yearling versus stockers is well documented. Little is known, however, about the economics of the transition process itself. We analyze benefits, costs, and risks of switching from cow-calf-yearling to stockers over a one-year versus seven-year transition period. Results show a gradual transition is superior to an abrupt transition. A gradual transition to stockers generates more net present value than cowcalf-yearlings, given a sufficiently high discount rate or short planning horizon. Farm managers and consultants should include transition-period benefits and costs when analyzing alternative enterprises.
dc.identifierdoi:10.22004/ag.econ.236654
dc.identifierhttps://ageconsearch.umn.edu/record/236654/files/434-Peck.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/236654
dc.identifier.urihttp://hdl.handle.net/123456789/620378
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/236654
dc.titleEconomics of Transitioning from a Cow-Calf-Yearling Operation to a Stocker Operation
dc.typeText

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