Effects of Winter Weather Risk on the Profitability of Beef Feedlots in North Dakota
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Abstract
This study examines the effects of management decisions, animal performance, weather risk, and economic variables on the profitability of the beef feedlot in North Dakota using data from the Dakota Feeder Calf Show and feed trials at North Dakota State University's Carrington Research and Extension Center. The effects of these variables were studied using an ordinary least squares analysis. Results demonstrated that severe cold stress reduced the profits of the feedlot in North Dakota. Results suggest that steers placed during the fall in North Dakota with placement weights > 600 pounds are more profitable to feed than lighter weight steers.