Feedlot profitability through the integration of simulated rations and stochastic market dynamics

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ID: 318014
2026
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Abstract
Lay Summary Feedlot profits can change quickly as feed costs, cattle prices, and animal performance shift over time. Many commonly used profit estimates rely on simplified assumptions or past averages, which can make it difficult for feedlot operators to evaluate current conditions or plan ahead. This study supports the development of a new feedlot profitability simulator tailored to the U.S. High Plains. The simulator uses region-specific rations that reflect current cattle nutrition standards and combines them with realistic market price changes. As a result, it produces outcomes, such as finished weights and cost of gain, that closely match industry benchmarks and publicly available U.S. Department of Agriculture data. Users can examine how profits respond to changes in feed prices, cattle prices, or feeding strategies, rather than relying on a single fixed scenario. By allowing feedlot operators to compare “what actually happened” with “what might happen under different conditions,” the simulator provides a practical way to support planning, budgeting, and risk management decisions. The High Plains Cattle Feeding Simulator will be updated every month and made publicly available by the U.S. Department of Agriculture Economic Research Service.
Reference Key
openalex_W7165359996 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Elliott Dennis, Shara Akat, James MacDonald, Russell Knight
Journal Translational animal science
Year 2026
DOI
10.1093/tas/txag061
URL
https://doi.org/10.1093/tas/txag061
Keywords Keywords not found

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