RESPONSE FUNCTION ESTIMATES FOR LOT FED BEEF

The paper reports estimates of the short term response in the number of cattle placed on feed lots to changes in the prices of fat cattle, store cattle and grain. Data used in the analysis comes from interviews of a panel of feed lot operators regarding their intended 1974 throughput of cattle at different price combinations. Price combinations are identified at which no cattle would be placed in feed lots, at which feed lots would be used at maximum capacity, and at which price changes would induce changes in the number of cattle on feed. For the price responsive zone regression procedures are employed to estimate response price elasticities.