Information and Resources
The mission of the Agricultural and Resource Economics Extension Program is to provide leadership for developing, delivering, and evaluating current and relevant agricultural economics and resource development educational programs for decision makers. Our vision is for Tennesseans to improve their knowledge, understanding, and application of economics to agricultural and rural issues.
Integrated Resource Management is a system that utilizes all resources available to optimize production and net income. This calendar has been developed to assist you in formulating an overall management plan for your beef and forage operation. Utilize the calendar to schedule various management practices, calf due dates, and farm-related activities.
Cattle producers have several methods to market cattle. Methods commonly used include live auction market, private treaty, graded sale, marketing alliance, video auction, internet auction, and retained ownership through the feedlot. Using Video Auctions to Market Cattle
This is a newsletter produced weekly to highlight the livestock and commodities markets. Comparisons, trends, and comments are made concerning the markets.
Three focus group meetings were hosted in December 2013 and January 2014 to explore Tennessee beef producers' experiences with marketing value-added beef. The purpose of these focus groups was to gather information about market opportunities and constraints faced by value-added beef producers in order to develop educational materials for interested farmers and industry partners.
Producers interested in adding value to cattle and directly marketing meat face many challenges such as developing business and marketing plans and starting and expanding operations. A survey of Tennessee consumers was conducted to gather information to learn about customers interested in purchasing local beef and to understand their tastes and preferences for products, shopping behaviors and willingness to pay for local beef.
Each marketing method carries risks, and one of the most prevalent risks for cattle producers is price risk that is present throughout all stages of production and marketing. Price risk is often thought of as declining cattle prices for sellers, increasing cattle prices for buyers or increasing feed prices for feed users.
Livestock producers, when selling products or purchasing inputs, can either accept the market price at delivery, or point of purchase, or reduce input and product price risks by using pricerisk management tools. One price-risk management opportunity is available through futures market contracts. This publication explains how livestock producers can use futures markets to manage price risk.
Understanding the concept of basis is a key element in developing a sound marketing plan. Basis refers to the relationship between the cash price in a local market and the futures market price. Basis is the difference between the cash price and the futures price for the time, place and quality where delivery actually occurs (Basis = Cash Price – Futures Price).
Beef producers have a limited number of tools to manage price risk associated with marketing cattle. The tools available include futures contracts, options, forward contracting and livestock risk protection insurance (LRP). Each tool brings with it a list of advantages and disadvantages, but each can be used effectively under different circumstances.
Ten Suggestions for Improved Feeder Cattle Production and Marketing
Production of feeder calves is the primary beef production system in Tennessee and the Southeast and the greatest source of agricultural income. Following are proven ways Tennessee cow-calf producers can add value to their feeder cattle if they are carried out from a "total management" standpoint. This means that the practices are part of the management package and all need to be done.