ECONOMIC MODELS OF CATTLE PRICES: How USDA Can Act to Improve Models to Explain Cattle Prices
Abstract
Cattle prices and the livelihood of those who raise cattle in the Urn ted States are influenced by many factors, ranging from weather to consumer taste. In addition, a number of structural changes are occurring in the cattle and beef industry. All these elements, and more, could be considered in developing a logical framework to explain cattle prices and producers' incomes. There is some concern that economic models that the U.S. Department of Agriculture (USDA) and the U.S. International Trade Commission (ITC) use do not account for all the factors that affect cattle prices and producers' incomes. At the request of Senator Tom Daschle, GAO addressed the following questions: (1) To what extent do these models incorporate structural changes-specifically, market concentration in the meatpacking sector, the use of marketing agreements and forward contracts, and imports? (2) What are the most important factors that affect cattle prices and producers' incomes? (3) What are the most significant data and modeling issues that need to be considered in developing a more comprehensive model, or logical framework, to explain cattle prices and producers' incomes?
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2002
- Accession Number
- ADA400689
Entities
People
- Nancy Kingsbury
Organizations
- United States Government Accountability Office