Weather effects on feedlot cattle performance and profitability

Performance of feedlot steers and heifers varies seasonally as cattle react to environmental conditions. Because their response to environmental conditions differs across numerous factors, cattle feeders routinely make management decisions conditional on how particular pens of cattle are expected to be affected by complex combinations of multiple weather conditions. The insurance industry is currently considering livestock risk management products that may be useful in indemnifying cattle feeding production or profit losses caused by specific weather conditions. This study identifies and quantifies the impact of several interrelated weather conditions on feedlot cattle performance and profitability. Marginal effects of several weather conditions on performance and profits are calculated for over 17,000 pens of steers and heifers fed in southwestern Kansas from 1980 to 1999 and summarized according to cattle sex, placement weight, and placement month.;A one-degree increase in average temperature during the feeding period increased profits for average pens of lightweight steer and heifer placements by ;An additional inch of precipitation during the first three weeks of the feeding period lowered profits of average pens of lightweight steer placements by up to ;Cattle feeding profits were most influenced by accumulated precipitation at the end of the feeding period, heat stress, temperature, and temperature variability. Offsetting profit risks associated with these weather conditions may be a first step in insuring weather risk associated with cattle feeding.