California Agriculture

We used 11 years of data from video auction sales across the western United States to address two long-standing questions posed by California cattle ranchers. First, as expected, ranchers receive lower prices for cattle sold here compared to prices received by ranchers in the Midwest. Second, some (but not all) “value-adding” production and marketing practices raise prices received by ranchers. We report the average amount of location discounts and quality premiums for several market regions.