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Feeder Cattle Premiums from a Certified Preconditioning Program

Williams, Galen S.
The purpose of this study was to: 1) develop a spreadsheet tool to allow for rapid creation of price summaries from each OQBN sale where data was collected; 2) to determine the existence and magnitude of premiums received by cattle enrolled and participating in Fall 2010 OQBN hosted sales. A random effect hedonic model was utilized to determine the existence and magnitude of the premiums using SAS 9.2. Cattle enrolled and participating in the 2010 OQBN program received price premiums over cattle which had not been preconditioned, as well as price premiums for being certified preconditioned through the OQBN program. The price premiums ranged from $11.36/cwt for a 350 pound average weight to $8.02/cwt for a 650 pound average lot weight.