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ARS Home » Plains Area » El Reno, Oklahoma » Grazinglands Research Laboratory » Agroclimate and Natural Resources Research » Research » Publications at this Location » Publication #318306

Research Project: AGRICULTURAL LAND MANAGEMENT TO OPTIMIZE PRODUCTIVITY AND NATURAL RESOURCE CONSERVATION AT FARM AND WATERSHED SCALES

Location: Agroclimate and Natural Resources Research

Title: Economic viability of beef cattle grazing systems under prolonged drought

Author
item Osei, Edward - Tarleton State University
item Steiner, Jean
item Saleh, Ali - Tarleton State University

Submitted to: Journal of Agricultural and Applied Economics
Publication Type: Proceedings
Publication Acceptance Date: 6/24/2015
Publication Date: 7/26/2015
Citation: Osei, E., Steiner, J.L., Saleh, A. 2015. Economic viability of beef cattle grazing systems under prolonged drought. Proceedings of Agricultural & Applied Economics Association and Western Agricultural Economics Association Annual Meeting, July 26-28, 2015, San Francisco, California. Available: http://ageconsearch.umn.edu/bitstream/205850/2/AAEAPaper_BeefCattleGrazing2d.pdf

Interpretive Summary: Prolonged drought in the Southern Great Plains of the USA in recent years has raised concerns about vulnerability of beef cattle grazing systems under adverse climate change. To help address the economic viability of beef grazing operations in the Southern Great Plains, this paper provides an economic assessment of beef grazing systems under baseline and prolonged drought situations comparable to the 2011 drought in this region. A coupled economic and environmental modeling system was used to determine the impacts of the prolonged drought scenario on the net incomes of beef grazing systems. The results of the model simulations support the conclusion that prolonged drought of the extent witnessed in recent years would be financially detrimental to beef grazing operations, unless viable mitigation measures are implemented. Beef grazing operations are projected to lose at least a third and in some cases close to half of net incomes when faced with prolonged drought weather patterns.

Technical Abstract: Prolonged drought in the Southern Great Plains of the USA in recent years has raised concerns about vulnerability of beef cattle grazing systems under adverse climate change. To help address the economic viability of beef grazing operations in the Southern Great Plains, this paper provides an economic assessment of beef grazing systems under baseline and prolonged drought situations comparable to the 2011 drought in this region. A coupled economic and environmental modeling system was used to determine the impacts of the prolonged drought scenario on the net incomes of beef grazing systems. The results of the model simulations support the conclusion that prolonged drought of the extent witnessed in recent years would be financially detrimental to beef grazing operations, unless viable mitigation measures are implemented. Beef grazing operations are projected to lose at least a third and in some cases close to half of net incomes when faced with prolonged drought weather patterns.