Cost of Production Analysis for the Texas Cow-Calf Industry

Abstract

Selected summary cost of production data gathered in Texas using the NCBA-IRM-SPA guidelines were reported and utilized to estimate a cost function for the Texas cow-calf industry. Results indicate that the economic cost of production for the cow-calf industry averaged $102.59 per cwt. over the 1992-1998 time period. It was found that a 1% increase in the per acre price of grazing results in a 0.141% increase in total cost for Texas cow-calf producers. In addition, the analysis found that a 1% increase in the per pound price of raised and purchased feed results in an expected 0.055% increase in total cost for Texas cow-calf producers.