Economics of compensation in backgrounding systems to evaluate alternative beef production strategies
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"Demand for beef is expanding and the United States cattle industry is growing rapidly. In a study of the livestock industry projected to 1930, Kamenidis and Rhodes estimate a 30 to 40 percent increase in cattle feeding in the corn belt which includes Missouri. This expected increase in cattle feeding will provide opportunity for developing cattle enterprises in Missouri. Missouri ranks ninth in all livestock production in the United States. Cattle and calves contribute more than 31 percent of the cash farm income in the state and easily ranks first as a contributor to farm income. Over 1,600,000 head of calves are born annually in Missouri, while only around 400,000 are put on feed. This number has stayed fairly constant over the past five years in Missouri while some other Midwest states have increased cattle feeding. The June 1972 cattle on feed report indicates the top four cattle feeding states in order are Texas (2,045,000), Iowa (1,819,000), Nebraska (1,363,000) and Kansas (1,150,000). The figures in parentheses are the number of head on feed June 1, 1972, and show increases from 3 to 22 percent over June 1, 1971 for these top four states. Continued demand for cattle to feed in these areas will provide a ready market for feeder cattle. Backgrounding is a term used to delineate the period in the production of beef from weaning until the calf is subjected to a high energy ration preparatory for slaughter. Backgrounding utilizes large amounts of roughage in wintering and grazing phases. Finley noted a favorable roughage balance existing in Missouri (surplus 560,000 tons) and projected this roughage surplus to increase more than three-fold by 1975. Backgrounding of cattle could utilize large amounts of Missouri's plentiful roughage balance. Many factors affect the profitability of backgrounding beef cattle. Among these factors is the "pace" or relative speed of approach to desired feeder weights. This "pacing" decision is a major concern in this thesis. While Missouri seemingly has potential for expanded backgrounding operations, this backgrounding function is not an inevitable part of the production of fed cattle. Research by animal scientists indicate calves can be full fed from weaning to slaughter involving only very limited amounts of roughage. And, a continued increase in cow numbers in Missouri (24 percent from 1966-1972) would provide increasing competition for available roughage."--Introduction.
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