Optimal Policies for Marketing Cull Beef Cows

Abstract

Abstract Feeding and marketing strategies for cull beef cows were analyzed by formulating a stochastic dynamic programming model which allowed simultaneous determination of optimal selling time and feeding levels until sale. The state variables were cow weight and monthly price; the latter was estimated statistically as a first‐order autoregressive process with parameters changing monthly. Results for Montana cow prices at Billings suggested substantial gains to feeding healthy cows through the winter instead of immediate sale after fall culling.